Lightstone kicks off Opportunity Zone fund with hotel project in Williamsburg
Firm is partnering on the fund with the PKS group
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.