Bridge Investment wants to raise another $600M for its Opportunity Zone funds
Bridge Investment Group said it plans to raise another $600 million through its Opportunity Zone funds between now and...
Opportunity Zones
Opportunity zones are meant to encourage development and job creation in low-income communities. To do this, opportunity zones allow investors who invest unrealized capital gains in opportunity funds to defer paying capital gains income tax on the money until 2026. These funds are then invested into the OZ. If 90% of the investment stays in the zone for ten years, investors can avoid paying the capital gains tax altogether. In New York there are 306 opportunity zones.
Opportunity Zones Q&A
How were opportunity zones created?
Opportunity Zones were created by the Tax Cuts and Jobs Act on December 22, 2017. The first OZs were designated the following April.
How do opportunity zones influence the real estate market?
Intended to spur development in low-income communities, opportunity zones create an incentive for the real estate industry to move more money into underdeveloped areas. In New York, opportunity zones are largely residential. The chance to invest tax-free in a property or development within an opportunity zone is an incentive for many investors.
Who is impacted by opportunity zones?
Investors with real estate interests, or who are looking to increase their real estate interests, may benefit from opportunity zones. Their effect on residents of the zones are more unclear. Although the stated intention of the opportunity zones is to create jobs and increase the quality of living in the zones, some suggest that opportunity zone development causes gentrification and are a giveaway for the rich; others suggest that they are simply not as effective in alleviating poverty as they claim to be; and still more suggest that the long-term effects of opportunity zones are yet to be seen.
Want to know more about opportunity zones?
Check out our Top Stories below for TRD's most up-to-date coverage of opportunity zones.
Opportunity Zones Top Stories
September 9, 2019—CrowdStreet, a real estate crowdfunding firm, launched its own Opportunity Zone fund targeting $20 million.
The Latest
New York pols take aim at Opportunity Zones
A new bill in Albany would eliminate a state tax break that benefits real estate developers in New York City. The legislation would end New York’s share of the Opportunity Zone tax break for...
TRD Insights: Little evidence that Opportunity Zone program helps poor communities
The Opportunity Zone program has been a huge success for well-capitalized real estate developers, but not for the disadvantaged...
Shorewood scores $88M construction loan for first Opportunity Zone project
Shorewood Real Estate Group has inked a new mortgage on its Opportunity Zone project in Jamaica, Queens, after closing...
Presidential election may turn spotlight back to Opportunity Zones
November’s presidential election may turn the spotlight back on the Opportunity Zone program, which has faded from view after...
Opportunity Zones investors get a Covid-19 lifeline
The federal government has extended the deadline for Opportunity Zone investors and developers to deploy capital and begin construction...
EB-5 fund administrator sells amid push to resurrect program
One of the country’s largest EB-5 and Opportunity Zone fund administrators will be acquired for at least $40 million...
“It didn’t happen:” Bronx leader says Opportunity Zone program failed to deliver
In the Bronx, where there are 74 designated Opportunity Zones, the borough’s head of economic development was one of...
Warren Buffett’s grandson and the art of Opportunity Zone social impact investing
The grandson of legendary investor and billionaire Warren Buffett is getting into Opportunity Zones, but in an unusual way....
“It’s all working”: Trump lauds Opportunity Zones during State of the Union
President Donald Trump hailed the troubled Opportunity Zones as an unqualified success during his State of the Union address...
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