Since the Opportunity Zone Program initiative launched in 2017, Caliber has been hard at work acquiring and transforming qualified opportunity zone properties in Arizona.
A result of the 2017 Tax Cuts and Jobs Act, opportunity zones are designated, low-income areas that offer special tax incentives. Investors who take advantage of the program may receive preferential tax treatment, including deferral of capital gains taxes until the investment is sold, or by December 31, 2026, whichever comes first. Over time, capital gains taxes may be reduced or eliminated altogether.
Caliber – The Wealth Development company owns several opportunity zone properties in Arizona and was one of the first in the country to take advantage of this monumental legislation. Investing in positive social impact plays an essential role in fulfilling the company’s mission. Here are the current properties within Caliber’s portfolio:
CALIBER’S OPPORTUNITY ZONE
PROPERTIES IN ARIZONA:
1. Behavioral Health Facility
Located near downtown Phoenix on 14th Street and McDowell Road, this 62,592-square-foot facility will serve as a mental health care center for patients with medical and psychiatric conditions. The Behavioral Health Hospital is adjacent to a Banner University Medical Center in Phoenix. Banner is one of the largest nonprofit health care systems in the country and Arizona’s largest private employer. The behavioral healthcare sector is growing exponentially and is estimated to be a $21 billion industry with an estimated 30 million people in the United States having diagnosable mental illnesses. The need for services is outpacing the supply of labor—therefore facilities dedicated to treatment of behavioral health are in high demand. In fact, the industry grew 5.1% annually from 2013 –2018 and is expected to grow 2.3% from 2018 –2023.
2. 305 E. Main
One of Caliber’s most recent purchases, this former Wells Fargo building is situated on the southwest corner of Main Street and Mesa Drive in historic downtown Mesa.
The 50,000-square-foot building is near light rail and a new tech-focused ASU campus currently underway.
3. Roosevelt Townhomes
Since purchasing the two-acre property in 2016, Caliber has worked with Tempe city officials to create this innovative community—one of the last available properties near Arizona State University and popular Mill Avenue. The townhome complex was specifically designed to lead in sustainability and home automation—two highly requested features among young professionals.
While The Roosevelt is still under construction, the first 14 units are expected to be completed by the end of 2020.
4. DoubleTree Tucson
Caliber recently secured the land directly adjacent to the Tucson Convention Center to build a hotel, which will provide convenient lodging for business travelers and locals alike. The hotel will benefit from the vast array of programming and events that take place annually at the Tucson Convention Center, a large multi-purpose facility housing nearly 200,000 square feet of convertible space. Major events take place at this venue each year, including the Tucson Gem and Mineral Show—the world’s largest of its kind; the University of Arizona Wildcats’ and the Tucson Roadrunners’ hockey games; Disney on Ice; WWE Wrestling; and various concerts.
Currently under construction, the hotel is expected to create an abundance of new jobs in the area and help support more than 500,000 tourists who visit the area every year. The 175-room development will have 4,000 square feet of event space, a restaurant, two bars and a second-story pool.
5. Downtown Mesa
Mesa currently ranks 35 among the largest U.S. cities, according to City of Mesa Economic Development. As part of a larger revitalization effort in downtown Mesa, Caliber purchased eight historic buildings in 2017. Since then, the real estate company has acquired an additional two buildings in the area. Caliber is currently renovating the properties to have a fresh, modern aesthetic and plans to fill the spaces with restaurants, offices and retail—creating new jobs and business opportunities for the surrounding community and transforming Mesa into a destination city.
This walkable urban center is conveniently located near light rail and the aforementioned new tech-focused ASU campus. The new Creative Futures Laboratory recently broke ground near Pepper Street and Centennial Way. The five-story building is projected to bring more than 750 ASU faculty, staff and students to the area.
Caliber hopes the projects will create an inviting urban environment in downtown Mesa, eventually attracting more people, businesses and jobs to the area.
Check out Caliber’s full suite of opportunity zone assets in Arizona and other high-growth areas on the Southwest.