Lightstone kicks off Opportunity Zone fund with hotel project in Williamsburg

Firm is partnering on the fund with the PKS group

New York /
Mar.March 28, 2019 06:00 PM

The Lightstone Group’s David Lichtenstein

The Lightstone Group is joining the ranks of companies launching Opportunity Zone funds, and their first investment is in Williamsburg.

Lightstone and partner PKS Group plan to raise $500 million for the fund, the company told The Real Deal.

Their first project will be a 203-key Moxy hotel in Williamsburg, the fifth Moxy location for Lightstone in New York City. It also has Moxy properties in Times Square and Chelsea, along with a pair of hotels under development in the East Village and on the Lower East Side.

Bloomberg first reported news of the fund.

David Lichtenstein, Lightstone’s founder, said in a statement that the company’s track record in hospitality development “positions us as a uniquely qualified Opportunity Zone sponsor.”

The Opportunity Zone program was part of the 2017 Tax Cuts and Jobs Act and meant to spur economic activity in underdeveloped areas. While Williamsburg may not strike many New Yorkers as an underdeveloped part of the city, it is in good company, as other neighborhoods classified as Opportunity Zones in New York include the Far West Side and the Lower East Side.

Other companies planning Opportunity Zones include a $500 million fund from Youngwoo & Associates, a $250 million fund from Normandy Real Estate and a $100 million fund from Heritage Equity Partners.


Related Articles

arrow_forward_ios
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

How a small stretch of land on the Far West Side became an Opportunity Zone
CrowdStreet CEO Tore Steen and vice president Darren Powderly (Credit: CrowdStreet and iStock)

Crowdfunding platform launches $20M Opportunity Zone fund

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

“This program will either be a boom or a bust:” State senator has plans to redesign Opportunity Zones
From left: Rybak Development's Sergey Rybak, 126 East 86th Street, 128 East 125th Street, Maddd Equities' Jorge Madruga (Rybak, Google Maps; Getty)

Manhattan investment sales show vital signs again

Manhattan investment sales show vital signs again
The Economic Innovation Group identified 145 real estate investments in Opportunity Zones (iStock)

Real estate deals dominate Opportunity Zones. Is that bad?

Real estate deals dominate Opportunity Zones. Is that bad?
Hana Financial Investment’s Lee Jin-Kook and a rendering of 1 St. Marks Place (Hana Financial Investments)

Hana Financial to sell loans tied to Manhattan office, hotel properties

Hana Financial to sell loans tied to Manhattan office, hotel properties
Extell Development's Gary Barnett and 32 West 48th Street (Google Maps)

Extell makes its Diamond District hotel official

Extell makes its Diamond District hotel official
The Grand Hyatt Hotel at 109 East 42nd Street and and  RXR’s Scott Rechler (Wikipedia Commons; Getty)

Grand Hyatt redevelopment could be 1,600-foot supertall

Grand Hyatt redevelopment could be 1,600-foot supertall
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...