RXR launches $500M fund targeting Trump tax plan’s “opportunity zones”

Some of the company's suburban pipeline would qualify for reduced tax

TRD New York /
Aug.August 15, 2018 03:00 PM

A rendering of Downtown New Rochelle and Scott Rechler (Credit: RXR Realty and Getty Images)

Scott Rechler‘s RXR Realty has a half-billion plan to profit off the Trump tax cuts.

The real estate developer is planning a fund set on investing in “opportunity zones,” a new feature of the tax code passed by Congress late last year that allows investors to defer or avoid capital gains taxes when they invest in designated under-invested areas.

Bloomberg reported RXR plans to raise the $500 million fund primarily through high net-worth individuals. According to an investor presentation cited by Bloomberg, RXR already has a few development projects in suburban locations like New Rochelle and Glen Cove that would be eligible for the tax benefit.

There are 8,700 eligible opportunity zones which were nominated by governors in all 50 states, Washington D.C. and overseas territories. The new tax benefit does not require housing built to be affordable to low-income residents.

While some have the cheered on the zones as way to bring more development to underserved communities, Bloomberg notes that others have questioned whether the new tax rules simply give developers more ways to dodge taxes for projects they would have built anyway. [Bloomberg] — Will Parker 

Related Articles

Census tract 135 and Stellar Management's Larry Gluck (Credit: Getty Images and Stellar Management)

How a small stretch of land on the Far West Side became an Opportunity Zone

Crowdfunding platform launches $20M Opportunity Zone fund

From left: New York Governor Andrew Cuomo, New York State senator James Sanders Jr., and New York City Mayor Bill de Blasio (Credit: Getty Images, iStock, and NY Senate)

“This program will either be a boom or a bust:” State senator has plans to redesign Opportunity Zones

Nuveen CEO Vijay Advani, Blackstone President & COO Jonathan Gray and one of the Texas properties

Blackstone just sold off a 29M sf national industrial portfolio

HUD Secretary Ben Carson joins Grant Cardone and a power panel for TRD Miami Forum

The purge continues: WeWork’s head of real estate is leaving

Judith and Rudy Giuliani Rudolph and Judith Giuliani are divorcing after 16 years. (Credit: Getty Images, Trulia, Highrises)

Luxury properties at play in Rudy Giuliani’s ugly divorce

Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)

Owners of some residential properties can’t hide behind
LLCs anymore