The right time for the right sponsor
Not all Opportunity Zones are created equal – location, financial structure, demographics, environmental and local characteristics are all critical factors in the proper and effective assessments and selection of any project.
Developer Assessment drives Selection Quality
- Developer/Sponsor Track Record
- Location Analysis for optimum performance characteristics
- Community relationship and use of other financial incentives
- Optimum investment structure per project
- Managing opportunities over a 10-year period as a tool for return enhancement
Creation of a new financial product
Joint Commission on Taxation estimates that during the first five years more than $7.7 billion of tax deferral will be reinvested under Section 1400Z.
Section 1400Z enables an increase in the basis in the investment to equal the value of the investment on the date of sale.
The Investment Period mandate is 10 years, as compared to more typical 3 to 5-year funding, thus requiring a new set of strategies.
8700 Opportunity Zones throughout the United States and Puerto Rico
Averagepoverty rate of 31% of the national median
- Family income of 59% of
- Housing stock 10 years older than
- 75% of Opportunity Zones have experienced post recession employment in the period 2011 to 2015
- Already 24 million jobs and 1.6 million places of business exist in opportunity zones
- Include significant portions of many major cities in the United States