Opportunity Zones are now big business for lawyers

Law firms have created special working groups to answer investors and developer questions about the popular tax incentive program

National /
May.May 28, 2019 02:07 PM
Lawyers are benefiting from Opportunity Zones

Lawyers are benefiting from Opportunity Zones

While it’s too early to tell whether the Opportunity Zones program will benefit the distressed neighborhoods it was designed to help, the legislation has already been a boon to at least one profession.

A growing number of big law firms like Morrison Foerster and K&L Gates are setting “pop up” working groups of tax, real estate, and private funds lawyers to work on Opportunity Zone issues, according to Bloomberg. These law firms have found a way to make money by seeking to answer investors and developers most pressing questions about the program and helping set up Opportunity Zone Funds.

Lawyers told Bloomberg that the interest in Opportunity Zones from clients increased significantly since the second round of regulations was released in mid-April, since investors and developers are finally ready to deploy capital into Opportunity Zones.

Real estate developers quickly became enamored with the Opportunity Zones program. In the year-and-a-half since the legislation was enacted as part of the tax overhaul plan, large real estate investment funds such as EJF Capital and RXR Realty have launched massive Opportunity Zone funds.

Developers or investors in an Opportunity Zone can defer and potentially forgo paying capital-gains taxes, with the biggest gain coming from long-term investors. [Bloomberg]Keith Larsen


Related Articles

arrow_forward_ios
Doctors and medical professionals have remained on time with their rent payments in the past year (iStock)
Medical offices are just what the doctor ordered for landlords
Medical offices are just what the doctor ordered for landlords
EJF Capital Co-CEO Manny Friedman (EFJ)
EJF Capital seeks better luck with second Opportunity Zone Fund
EJF Capital seeks better luck with second Opportunity Zone Fund
The rate of loans sent to special servicers continued to fall in March. (Unsplash)
CMBS special servicing rate declines in March
CMBS special servicing rate declines in March
JLL CEO Christian Ulbrich. (Getty)
JLL explores sale of China property management wing
JLL explores sale of China property management wing
Dollar General CEO Todd Vasos (Retail Industry Leaders Association, iStock)
Dollar General thrives amid retail apocalypse
Dollar General thrives amid retail apocalypse
Bill Lee (Lee & Associates/YouTube)
Lee & Associates founder Bill Lee dies
Lee & Associates founder Bill Lee dies
The vacancy rate for regional and superregional malls is at an all-time high. (Getty)
Mall vacancy rate hits all-time high
Mall vacancy rate hits all-time high
Gores Group’s Alec Gores and Dean Metropoulos with Sonder CEO Francis Davidson (Getty, Linkedin)
Sonder considers going public via SPAC
Sonder considers going public via SPAC
arrow_forward_ios

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

Loading...