Miami’s condo king now wants to build apartments in this Opportunity Zone

Jorge Perez said he is also looking at using the federal tax program for an Allapattah warehouse

Apr.April 11, 2019 05:00 PM

Jorge Perez

South Florida’s condo king is so enamored with the Opportunity Zone program that he is looking to use it to build market-rate apartments in West Palm Beach.

Related Group’s Chairman and CEO Jorge Perez said he plans to use the Opportunity Zones tax break for a waterfront parcel in the city, according to Bloomberg. Perez said market-rate apartments makes more sense now that it is in an Opportunity Zone.

The Related project was not specifically named in the Bloomberg article, but the property fits the description of the site where Perez previously planned to build the Marina Village project.

Related planned to build two 24-story buildings with about 400 units at 4400 North Flagler Drive. Related bought the site in 2005 for $9.4 million, records show.

Perez also said he could use the tax program in Miami’s Allapattah neighborhood, where he bought a warehouse to store his private art collection, according to Bloomberg.

Perez is one of the many developers looking to take advantage of the federal Opportunity Zones program. Passed as part of President Trump’s 2017 tax plan, the Opportunity Zones program allows investors and developers the ability to defer and potentially forgo paying capital gains taxes by investing in a designated Opportunity Zone. The program has received criticism that it will only benefit wealthy developers like Related rather than help distressed communities.

Many developers are waiting to deploy capital and start building in these Opportunity Zones until more regulations and rules come out from the Internal Revenue Service and the U.S. Treasury. [Bloomberg] — Keith Larsen

Related Articles

Daily Digest Miami

Quiksilver signs a lease in Miami Beach, Delray Beach’s Atlantic Crossing announces first retail and office tenants: Daily digest

The Bristol and Thomas J. Healey

Financial mogul pays $6.5 million for unit at the Bristol in West Palm

Daily Digest Miami

54-story Turnberry Ocean Club tops off, Flagler streetscape project to break ground: Daily digest

2751 South Dixie Highway, Scott Sherman and Ben Mandell

Tricera reveals plans for redevelopment of Palm Beach Post building

Ben Carson, United States Secretary of Housing and Urban Development

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

From left: Jon Paul Perez, Alex Karakhanian, Tony Arellano and Devlin Marinoff over the site (Credit: Google Maps)

Related Group, Alex Karakhanian and partners drop $32M on Wynwood site

Jon Paul Pérez, Jorge Pérez and the downtown Miami skyline (Credit: iStock)

Miami’s biggest condo developer is going micro

Daily Digest Miami

The trade war could hurt the industrial real estate boom, Hurricane Dorian’s impact on Florida’s hotels: Daily digest