Jumping on the chance to benefit from the program created by the Tax Cuts and Jobs Act of 2017, Arizona was one of the first states to have its opportunity zones federally approved. In total, the state has 168 opportunity zones with approximately 681,000 residents in these areas.
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Opportunity zones are designed to support disadvantaged communities by incentivizing economic growth in designated areas where new real estate projects and businesses can thrive. A win/win for both municipalities and investors, the program has been called one of the best capital gains tax reduction programs of a generation.
Caliber – The Wealth Development Company was one of the first organizations to offer investors a qualified fund. Launched in 2018, the Caliber Tax Advantaged Opportunity Zone Fund, LP, already boasts a large and diversified portfolio of real estate assets.
Keep reading for a snapshot of some of Caliber’s opportunity zone projects in local markets.
The greater Phoenix area is one of the fastest-growing cities in the nation, making it a prime location for new business to thrive. In fact, Phoenix leads the state with 42 designated opportunity zone tracts and a wealth of potential growth for residential real estate. One such project is Caliber’s GC Square Apartments.
A passion project, Caliber purchased the 1970s multi-family property and transformed it into modern, fully furnished apartment homes. Located near Grand Canyon University, the GC Square development has helped to revamp the area and offer affordable, inviting housing for students and people in the community.
A city on the verge of exciting rejuvenation, Caliber began investing in Mesa before opportunity zones were enacted. In 2017, Caliber acquired eight historical buildings in Mesa’s downtown core and has been working closely with local officials to align its plans with the city’s overall vision for redevelopment. Caliber will work to reinvent the 100,000+ square feet of commercial property into modern but historically charming restaurant and retail space that creates an inviting urban environment.
Over the past few years, Mesa has become a hub for innovation, welcoming autonomous vehicle testing, several new business concepts and light rail development. The community is also embracing culture with the Mesa Arts Center and an increased focus on promoting music and art. In total, Mesa houses 11 opportunity zones and is sure to continue its path of steady growth.
Caliber has a long history of investing in many of the areas designated as opportunity zones, including the Tucson market. A city on its own path to rejuvenation, Tucson has 24 designated opportunity zones, a rapidly growing population and the highest concentration of startups of any U.S. city of its size.
One of the first projects announced as part of Caliber’s qualified opportunity zone fund, the Tucson Convention Center Hotel – a DoubleTree by Hilton property – will fill a growing need for additional lodging in this busy area. The hotel will feature 174 rooms, 4,000 square feet of meeting space, multiple dining options and an attached parking garage.
Working closely with Rio Nuevo and local government officials, Caliber is dedicated to helping create a dynamic city center in downtown Tucson.
Many people imagine highly distressed communities when they think of opportunity zones, but that’s not always the case. Many of the areas on the list, like downtown Tempe, are in a growth or renewal phase and would greatly benefit from increased development. Enter Caliber’s Roosevelt Townhome Community.
Specifically designed to cater to the city’s Gen X and Millennial population, the 42-unit townhome community will offer innovative sustainability features and build-in smart home technology. The property will bring needed housing to an area boasting more than 40,000 employees in its business corridor and an average student population of more than 75,000.
Building the development from the ground-up, Caliber has been able to design a community that will positively impact this growing area.
One of the few companies deploying a regional approach to its qualified opportunity fund, Caliber boasts a diversified portfolio of residential and commercial assets in targeted zones across the Southwest. The company began taking capital in October 2018 and expects to raise $500 million in the next two years.
Post by Conor Donohue
Caliber Associate Vice President
To learn more about the Caliber Tax Advantaged Opportunity Fund, LP feel free to reach out me directly at Conor.Donohue@CaliberCo.com.