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Last week, I asked readers to participate in a two question survey on the state of our economy and how it is impacting Opportunity Zone investments. Responses were mixed with participants saying inflation has both slightly slowed and slightly spurred investments. More analysis and full results below. Additionally, this week the U.S. Department of Housing and Urban Development (HUD) revealed details of the 203(k) Rehabilitation Mortgage Insurance Program, an initiative through the Federal Housing Administration (FHA) offering some additional rebates and other cost saving opportunities for homeowners residing within Opportunity Zones. A major producer of solar and glass panels in the U.S., Toledo Solar, announced a partnership this week with SEDC Solar, a Washington, DC-based Opportunity Zone business stemming from NetZero Opportunity Zone Fund. Together, the pair plan to extend their production within the DC-Metro area. More exciting news below! Sincerely, Jill Homan President, Javelin19 Javelin19 July survey resultsWhen asking readers whether inflation has slowed or spurred interest in Opportunity Zones, respondents overwhelmingly said inflation has slightly spurred interest in investing in OZs. This is possibly the result of factors like: OZ investments are long term holds less impacted by the volatile markets; and real estate has traditionally been a hedge against inflation. Additionally, as we inch closer to the end of the year, I asked participants whether they plan to increase or decrease investments before the end of the year. Responses were equal, with half saying they plan to increase investments, while others plan to continue with their current investment flow.  U.S. Department of Housing and Urban Development Announces 203(k) Rehabilitation Mortgage Insurance Program, Providing Opportunity for Homeowners Residing Within an Opportunity ZoneThis week, the U.S. Department of Housing and Urban Development (HUD) revealed details of The 203(k) Rehabilitation Mortgage Insurance program, an initiative through the Federal Housing Administration (FHA) offering rebates and cost saving opportunities for homeowners. The program makes it possible for homeowners to incorporate the costs of repairs into a loan when purchasing a home or refinancing their current mortgages. Eligible repairs include energy efficient upgrades, energy-saving equipment, and energy generation improvements. Homeowners within Qualified Opportunity Zones can finance up to $50,000 (which is more than the traditional $35,000) into their mortgage to repair, upgrade, or improve their home. SEDC Solar Teaming Up With Toledo Solar to Provide Solar Products to Local ResidentsThis week, a major producer of solar and glass panels, Teledo Solar, announced a partnership with SEDC Solar, a Washington, DC-based Opportunity Zone business. SEDC Solar, a project of NetZero Opportunity Zone Fund, delivers solar and creates jobs within Washington's Wards 4, 7, and 8. “We are proud to provide the best American-made solar panel products and installation services available to the D.C. area by partnering with SEDC Solar,” said Aaron Bates, the founder and CEO of Toledo Solar. “We look forward to serving the D.C. market as an extension of SEDC Solar, as they are already making a strong impact providing solar energy to the consumer for free.” Driftwood Capital Completes $31 Million Staybridge Suites Hotel in Downtown Wilmington, Delaware Opportunity ZoneThis week, Driftwood Capital completed construction on the new $31 million Staybridge Suites hotel located within a downtown Wilmington, Delaware Opportunity Zone. The property, sitting 11-stories, consists of 134 suite-style rooms. The property will be managed by Driftwood Hospitality Management, and was primarily financed through a Qualified Opportunity Fund, as well as received a $1.02 million grant from the Delaware State Housing Authority's Downtown Development Districts Rebate Program.
This week, I want to hear from you! As we enter the second half of 2022, I am interested in investment trends you are seeing and the impact of inflation on investors’ Opportunity Zone decisions. I kindly ask for your feedback via the two polls included below. I look forward to sharing the results of next week. Next, Cincinnati Center City Development Corp. and Model Group recently completed construction on their 163-unit mixed-use, mixed-income development. They utilized several tax benefits, including state and federal historic tax credits, as well as the Opportunity Zone tax incentive. Representatives from Model Group believe this property is a step in the right direction, saying, “it goes a really long way toward revitalizing parts of the neighborhood that haven’t been done.” Additionally, A&G Real Estate Partners released an assessment which showed more investors — especially in the Northeastern region — are looking to the Opportunity Zone tax incentive due to the current stock market volatility. According to A&G, about 40 percent of their assets offered for sale in New Jersey are located within Qualified Opportunity Zones. More exciting news below! Sincerely, Jill Homan President, Javelin 19 Click Here to Take My Two Question Survey: Capital Squaure Broke Ground on ROOST Apartment Hotel Within Charleston, South Carolina Opportunity ZoneThis week, Capital Square broke ground on 529 King Street ROOST Apartment Hotel, located within a Charleston, South Carolina Opportunity Zone. The five-story development will feature 50 units ranging from studio, one-, two- and three-bedroom, as well as a rooftop lounge and retail space. "Charleston, for all of its southern charm and grace, lacks extended stay housing options. The problem was magnified during the COVID pandemic, when large portions of the economy were closed and construction mostly came to a halt," said Louis Roger, founder and chief executive officer. "Capital Square is pleased to report that, in spite of the many challenges encountered during the pandemic, ground has been broken to build a luxury apartment hotel on world-famous King Street." Construction is slated to be complete by Summer 2023. Investors Pursuing Commercial and Multifamily Real Estate in New Jersey Opportunity Zones as Market Volatility ContinuesAccording to A&G Real Estate Partners, more investors are seeking commercial and multifamily real estate opportunities within the Northeast as stock market volatility continues. In New Jersey, more investors are also starting to show interest in utilizing the Qualified Opportunity Zone tax incentive. "In the case of the New Jersey portfolio, about 40 percent of the assets on offer are located in QOZs," said Emilio Amendola, Co-President of A&G Real Estate Partners. "We are definitely seeing substantial interest in these assets from the Opportunity Zone funds." 3CDC and Model Group Mixed-Use Development Nearly 95% OccupiedThe Cincinnati Center City Development Corp., along with Model Group recently completed construction on Willkommen, a mixed-use, mixed-income development property within a Cincinnati, Ohio Opportunity Zone. Willkommen consists of 163 apartments, 88 of which are allocated for tenants making 50 to 80 percent of the area median income. After recently opening its doors to tenants, Willkommen has already rented 155 of its 163 units -- reporting they are nearly 95 percent occupied. The development of Willkommen took advantage of several tax incentives, including the Opportunity Zone tax incentive, as well as the state and federal state historic tax credits. Governor Lee, Commissioner McWhorter Announce iFixit Facility Coming to Chattanooga, Tennessee Opportunity ZoneThis week, Tennessee Governor Bill Lee, along with Department of Economic and Community Development Commissioner Stuart McWhorter, announced iFixit will establish its East Coast hub for distribution and innovation within a Chattanooga, Tennessee Opportunity Zone. iFixit plans to invest more than $24 million in Hamilton County and create 201 new jobs over the next five years. The iFixit facility will house the company's distribution and back-office operations. “Our business climate, skilled workforce and central location make Tennessee the ideal state for companies to thrive," said Governor Bill Lee. "I thank iFixit for investing in our state and creating new jobs for Tennesseans in the Chattanooga community.” Adding to this, iFixit's CEO Kyle Wiens said, “iFixit is a mission driven company, and it was really important to us to find a community that matched our values. Chattanooga’s story of environmental restoration mirrors iFixit’s: we refuse to take broken for an answer. iFixit is committed to extending the lifespan of all the products in the world.”
This week, Atlanta-based Four Stones Real Estate broke ground on Phase II of Kern’s Bakery, a 16-acre mixed-use development in a Knoxville, Tennessee Opportunity Zone. Kern’s Bakery was one of the first OZ deals to close in the nation. Phase II of the project includes the transformation of a 75,000 square-foot historic bakery site into an 18-merchant food hall facility with boutique office space, rooftop bars and more.
Additionally, a joint venture between Perseus TDC and Griffin Capital broke ground on the Residences at The Six in a Hyattsville, Maryland Opportunity Zone. The project will include 316 apartment units and over 2,000 square-feet of ground floor retail. More than 70 percent of the units will be allocated for low- and middle- income households. Finally, a vacant stretch of the University of Connecticut’s Mansfield Campus is slated to become the first autonomous vehicle and smart city research facility in the region, and it’s located in an Opportunity Zone. Spectrum Park, the proposed development, is being spearheaded by the Connecticut Transportation Institute and hopes to drive innovation and job growth. |
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