Indiana Dunes Club — Opportunity Zone Returns Calculator

Your scenario

Dial in the deal

Sale price $16,500,000

Gross price you sold (or plan to sell) the asset for.

Cost basis $12,500,000

Original purchase price + capital improvements.

Depreciation taken $0

Cumulative depreciation you've deducted. Triggers 25% §1250 recapture at sale.

Capital gain (computed) $4,000,000

= Sale price − (Cost basis − Depreciation taken). Only this gain rolls into the QROF.

Hold period 10 years

Year 10 is where the OZ appreciation exclusion kicks in.

Property appreciation 7.0%/yr → 2.0× at Y10

NNN master lease · Y1 cap 6.5%

Contractual Y1 rent as a % of stabilized property value. Wanderluxe bears taxes, insurance, maintenance (triple-net).

NNN rent escalators 3.0%/yr

Contractual annual rent step-ups under the 10-year lease.

Cost seg % of basis 35%

Beachwalk studies confirm 30–35% is achievable.

Investor tax profile

State cap-gain %

Ordinary %

State 4.95% (LTCG blended 28.75% · recap blended 33.75%)

Federal is fixed: 20% LTCG, 25% recapture, 3.8% NIIT on both.

Path A · If you do nothing

$1,136,000

Total tax at sale on the capital gain — recapture + LTCG + NIIT, paid at Y1.

Indiana Dunes Club QROF advantage at Y10

+$11,367,370

vs. paying tax and investing after-tax at 6.0%.

Return on your tax dollars

10.6×

Every $1 that would have gone to the IRS becomes $10.62 at Y10.

Year-by-year: Path A vs Indiana Dunes Club QROF

Values shown ex-basis · NNN rent reinvested @ 6.0%

QROF equity (gain rolled in) Property appreciation (tax-free) NNN rent reinvested Cost seg refund reinvested Path A · after-tax 6.0% (line)

Line-by-line at Y10

	Path A · Pay Tax	Path B · Indiana Dunes Club QROF

Basis is returned in both paths — shown separately so the comparison is apples-to-apples.

Where Most OZ Deals Fail

The #1 risk in an Opportunity Zone is Year 10 residual value.

The 30% rural step-up and the tax-free exit only matter if the underlying real estate is actually worth 2× at year 10. Here's how Indiana Dunes Club defends it.

The 6 unknowns

Most OZ deals cannot defend Y10 value

No comps. Emerging OZ tracts with no arm's-length trades to anchor exit pricing.
Sponsor-controlled marks. "Fair value" reported by the sponsor — no independent broker or appraisal.
Exit dependent on refinancing. The plan requires a 10-year cash-out refi that a 2035 rate market may not support.
Bulk-buyer risk. A single-asset multifamily or hotel must sell as one block to one institutional buyer.
Lease-up assumptions. Rent growth and stabilized cap rates baked in at aggressive underwriting.
Location bet. The OZ tract was designated for economic distress — the exit assumes gentrification that may not arrive.

The Indiana Dunes Club answer

Why Indiana Dunes Club is different

71 fee-simple homesites. Each parcel sells to an individual homeowner — no bulk-buyer risk, no institutional exit needed.
Live comps next door. Beachwalk trades $675K–$1.4M; Whisper Dunes just closed at $1.35M and $3.01M — real, arm's-length transactions, not sponsor marks.
Median $459/sf on 2026 YTD sales, with buyers paying 15–17% over ask on turnkey product.
26.2-acre private lake + dune frontage. The scarcity story — last privately held shoreline of Lake Kai — is inherent to the land, not the underwriting.
Rural QROF (30% step-up). The site sits in a federally designated rural census tract — permanent 30% exclusion locked at Y5.
Indiana Dunes National Park >4M visitors in 2025. More than Yellowstone, Yosemite, or Grand Canyon — a demand engine that predates the OZ designation.

Assumptions & footnotes

Rural QROF 30% step-up at Y5. The Indiana Dunes Club site sits in a rural-designated OZ tract, qualifying for the 30% permanent basis step-up (vs. 10% for urban tracts) under OZ 2.0. Trigger date is the fifth anniversary of the QROF equity investment. See IRS Opportunity Zones FAQ.
Tax-free appreciation at Y10. Under IRC §1400Z-2(c), an investor who holds a QOF interest for 10 years may elect to step up basis to fair market value at disposition, eliminating federal tax on post-investment appreciation. Illinois conforms — no state-level clawback on the exit gain. See Novogradac state conformity chart.
Cost segregation refund assumes 100% bonus depreciation restored under the One Big Beautiful Bill Act (P.L. 119-21, IRC §168(k)) for qualified property placed in service after Jan. 19, 2025. Because the home is under a 10-year NNN master lease to Wanderluxe, the resulting depreciation flows as passive rental loss on the investor's Schedule E — usable against passive income currently, and against ordinary income if the investor qualifies as a real estate professional (IRC §469(c)(7)). Refund modeled at combined federal ordinary + state rate; CPA sign-off required. See IRS OBBBA bonus depreciation guidance.
NNN master lease rent (Wanderluxe). At delivery, The Wanderluxe Collection executes a 10-year triple-net master lease. Year-1 rent equals the selected cap rate multiplied by the stabilized property value (modeled at the capital gain rolled in). Rent escalates by the selected annual step-up. Wanderluxe bears taxes, insurance, and maintenance under NNN terms and operates the home under its All-Seasons Resort Club program — investors carry no operating role. Rent is taxed as ordinary rental income as received; cash flows are reinvested at the 6.0% Path A benchmark rate to Year 10. Wanderluxe is owned and operated by Rob Harte and today runs 100+ Beachwalk-market homes with approximately $6.5M annual gross revenue — the operator credit behind the lease.
Property appreciation is applied to the initial QROF equity ($ capital gain rolled in), compounding annually at the selected rate. At 7%/yr for 10 years the multiplier is 1.967×. Beachwalk homes have roughly tripled over two decades — the calculator's default is materially more conservative.
Illinois top-bracket tax profile: 20% federal LTCG + 3.8% NIIT + 4.95% Illinois = 28.75% blended LTCG. Ordinary income (for the cost seg refund) is 37% federal + 4.95% Illinois = 41.95%.
Indiana Dunes visitation: 4.02M combined 2025 visits to Indiana Dunes National Park + Indiana Dunes State Park. Source: NPS Indiana Dunes statistics.

Illustrative only. Requires independent legal, tax and sponsor documentation before any investment decision. Cost-seg refund routes through passive rental loss on Schedule E; usability against ordinary income requires real-estate professional status (IRC §469(c)(7)) and CPA sign-off. Past performance of adjacent Beachwalk / Whisper Dunes comparables does not guarantee Indiana Dunes Club outcomes.

See what your capital gain becomes at Year 10.