Walls have been tilted at Colton Commerce Center, a four-building 182,123-square-foot Class A industrial park with buildings ranging from 40,000 to 50,000 square feet located in a federally designated Opportunity Zone at 2245 West Valley Blvd. in Colton. The buildings at this Inland Empire development are available for sale or lease, with construction scheduled for completion in December 2025. 

JLL’s team of Cody Clayton, Scott Coyle and Jay Cuccia are marketing the property on behalf of ownership. “Unlike standard industrial building acquisitions, which offer no capital gains deferral or exemption, ownership at Colton Commerce Center allows buyers to eliminate federal capital gains tax on appreciation if held for 10 years, translating into millions in long-term savings,” said Clayton.

He continued, “Purchasing one of the buildings at the property would allow owner-users to avoid exposure to future rent and building cost increases while securing space in one of the most sought-after industrial markets in the United States.”

On June 18, join industry-leading experts when they explore the most important topics in today’s CRE markets. Register to attend and hear expert insights first-hand, network with the best in the industry, and sit in on discussions you won’t hear anywhere else. The 9th Annual Connect Los Angeles 2025, June 18 at the Intercontinental Los Angeles Downtown. 

Greysteel has announced the listing of a mixed-use opportunity zone development site at 45 Q Street SW, located in the rapidly expanding Southwest Waterfront area of Washington, D.C.

This fully entitled property is situated in proximity to the Navy Yard, The Wharf, and Buzzard Point. “45 Q Street is a rare opportunity to deliver a dynamic mix-use project in an opportunity zone between Nationals Baseball Stadium and Audi Field,” said W. Kyle Tangney, Senior Managing Director at Greysteel. “I’m not aware of another shovel ready opportunity in the entire US that features all the neighborhood and site dynamics this project has going for it.”

The property is currently entitled for a 152,245-square-foot mixed-use project featuring a 78,414-square-foot Moxy Hotel with 182 rooms under the Marriott International umbrella, 64,949 square feet of residential units, 6,546 square feet of ground-floor retail space, and a 4,436-square-foot rooftop venue.

Cantor Fitzgerald, L.P. and Silverstein Properties, Inc. said Monday they had closed on Cantor Silverstein Opportunity Zone Trust II, Inc. with more than $470 million of equity raised. CSOZ Trust II includes four planned multifamily and mixed-use developments totaling 1,932 multifamily units and 1.5 million square feet and located in Tempe, AZ, Richmond, VA, Summerville, SC and Huntsville, AL.

“We have seen strong investor interest in this business, enabling us to build a diversified portfolio of institutional-quality multifamily real estate,” said Bill Ferri, global head of Cantor Fitzgerald Asset Management. “This growth underscores our commitment to creating lasting economic impact and revitalizing neighborhoods across the United States. We are optimistic about a potential extension to the overall Qualified Opportunity Zone Program to further drive meaningful growth.”

Cantor and Silverstein launched their Opportunity Zone business in early 2019 to invest in, develop, redevelop and manage a diversified portfolio of institutional quality commercial real estate assets. The firms are focused on multifamily properties located in Qualified Opportunity Zones in the U.S.

Pictured: Shorehaven, part of Cantor and Silverstein’s South Pier mixed-use development in Tempe, AZ.

M&T Realty Capital Corporation provided $38.71 million in financing for 29-17 40th Ave., a 103-unit affordable property in a Long Island City Qualified Opportunity Zone. Loan originators Matt Newton and Todd Trehubenko of the M&T RCC office in Boston arranged the Freddie Mac Targeted Affordable Housing loan on behalf of The Davis Companies, SB Development and Hazelton Capital Group.

“By working closely with the sponsors and Freddie Mac’s Targeted Affordable Housing group in this challenging interest rate environment, we were able to execute on a timeline that fit the needs of the sponsors’ business plan for this Opportunity Zone project,” said Newton. “The dedication from all parties was crucial in getting this deal across the finish line.”

Twelve of the units at 29-17 40th Ave. will be restricted to tenants earning 130% of the Area Median Income and 19 will be restricted to those earning 80%.

Gorman and Company has released more information about its development activity in the Sweet Auburn district of Atlanta. The Invest Atlanta Board of Directors approved a Housing Opportunity Bond up to $3 million to help move construction forward. Both phases of Sweet Auburn Grande are expected to cost over $74 million. Urbanize Atlanta reports the project hopes to enliven what’s currently a dead zone of boarded-up, historically significant buildings and surface parking lots.

For phase one, revised Sweet Auburn Grande plans call for building 109 multifamily residences along Auburn Avenue. Roughly 11,500 square feet of commercial space at street level would also be included. Half will be for tenants earning 50% of the area’s median income. That phase is scheduled to start construction in late July and cost roughly $56 million. The apartments and retail are expected to open in July 2026.

The project’s second phase calls for restoring two more historic structures. Development costs are expected to come in at around $18 million.  

Arctaris Impact Investors, LLC, a Boston-based impact investment firm that supports revitalization projects in underserved communities, made a lead equity investment in Liv DTLA, a $67-million market-rate affordable housing development in the South Park neighborhood of Los Angeles. The transaction marks Arctaris Impact’s first Opportunity Zone investment in Los Angeles.

Funding for the project includes Arctaris’ $13.6-million equity investment, a $34.9-million loan facilitated by the United Way of Greater Los Angeles’ Affordable Housing Initiative, and $18.1 million of equity previously raised through CrowdStreet and other impact-oriented high-net-worth individuals.

The all-studio housing project, located at 1411 S. Flower St., is being developed by Housing Diversity Corp., a Seattle-based large-scale multifamily real estate manager. Construction is 85% complete and the finished project is expected to consist of 227 units, with 40% reserved for extremely low-income and voucher-subsidized households.

On April 18, join multihousing’s leaders and dealmakers when they explore the most important topics facing the Phoenix and Scottsdale markets today. Register to attend and hear expert insights first-hand, network with the best in the industry, and sit in on discussions you won’t hear anywhere else. Connect Phoenix Multifamily & Single-Family Build-to-Rent on April 18 at the Westin Kierland Resort & Spa.  

Marcus & Millichap finalized the sale of a 0.16-acre parcel of land located in San Diego. The asset sold for $1,600,000. 

Aaron Bove, senior managing director investments in Marcus & Millichap’s San Diego Del Mar office, marketed the property on behalf of the seller, 3971 Georgia Avenue San Diego LLC. The buyer, RD Dev Properties LLC, was procured by Bove and Jared Wallach, investment specialists in the firm’s San Diego Del Mar office. 

The property is a 6,998-square-foot lot with an existing duplex located at 3971 Georgia St. in San Diego. This prime Hillcrest site was zoned RM-3-7 and included a Complete Community Tier 3 overlay and was in a Qualified Opportunity Zone .  

“We are very excited to watch the transformation of the site into quality housing for the neighborhood,” said Bove. “The 45-day escrow shows the resiliency of San Diego development.” 

Courtesy of Chicago Neighborhood Initiatives

Pullman Crossings

A deadline is approaching for investors that want to pour capital gains into federal opportunity zones, and a rush could be on.

As of Jan, 1, investments into qualified opportunity zone funds won’t receive the 10% reduction on deferred capital gains taxes that has been part of the program since it was created by the 2017 Tax Cuts and Jobs Act.  

Those who act after Dec. 31 can still secure two other benefits from the program, which, according to its congressional sponsors, was meant to drive investment into neighborhoods historically starved for capital. Future investors can still defer their capital gains tax liability until Dec. 31, 2026, as well as eliminate taxes on any capital gains realized from an opportunity zone investment after 10 years.

Those two benefits are each more valuable to investors than the 10% reduction on deferred capital gains taxes that will sunset in less than four weeks, according to Origin Investments Co-CEO David Scherer. But the loss of that reduction is still causing a new rush of investors seeking to take advantage of opportunity zones.  

“It’s a better idea to do this in December rather than in January because why not get the 10%?” Scherer said.

Origin closed its first qualified opportunity zone fund in July after raising $265M from more than 800 investors, he said. These dollars can flow into most kinds of developments, properties and businesses within the nation’s 8,700 opportunity zones, but Origin concentrates on multifamily developments. Its first fund has about 3,700 units under construction in 11 multifamily properties, with a total value of more than $846M.

The firm launched its second qualified opportunity zone fund in October. It has six multifamily assets in its pipeline, including projects in the Atlanta, Phoenix, Charlotte and Colorado Springs markets.

It is typical that Q4 is the busiest for firms running qualified opportunity zone funds, Scherer said, but based on activity over the past few weeks, this year could be the busiest.

“I can’t give you an exact number, but we’re already seeing it, and we’re pretty confident we’ll have a record December,” he added.

Opportunity zone funds have become more popular with investors. In the first half of 2021, qualified funds raised more than $17.5B, a 15.5% boost over the total reported for all of 2020, according to a study by Novogradac, a public accounting firm.

The program has its critics, who say opportunity zones provide tax breaks for wealthy investors and promote development in areas that aren’t really struggling.

That isn’t true, at least in Illinois, according to Jennifer Bransfield, chief operating officer of Chicago Neighborhood Initiatives, a nonprofit developer that does a lot of work in the Far South Side neighborhood of Pullman. She credits state and city officials for making sure opportunity zones in Illinois covered the neighborhoods, including Pullman, that needed the most help.

“It’s an important tool that helps finance projects that traditional developers will overlook because they don’t pencil out with traditional forms of capital,” she said.

Opportunity zone investors provided all the funding for the $35M, 400K SF industrial building that CNI developed in Pullman Crossings, a 62-acre industrial park. The project was finished two years ago and is now fully occupied by manufacturer SC Johnson.

“Having the OZ financing meant we were able to develop the project very swiftly, just nine months, and deliver 200 new jobs to the neighborhood,” Bransfield said.

Developer Crescent Communities, along with global private investment firm Starwood Capital Group, has announced plans for a new mixed-use community in Nashville’s Edgehill neighborhood.

The community is located at 801 12th Ave. South, within an opportunity zone and will include 270 apartment homes along with 6,000 square feet of retail space and a dedicated co-working space. The property will be called NOVEL Edgehill and will include a rooftop sky lounge and pool deck with views of the downtown Nashville skyline.

Crescent and development partner Pearl Street Partners acquired the three-acre property earlier this year. Construction is scheduled to begin this quarter, with residences available for move ins in late 2021.

“NOVEL Edgehill’s location is experiential, offering unobstructed views of downtown Nashville’s skyline, and high-rise amenities that include our Sky Lounge on the pool deck that faces east, north and south, with a heated spa and pool, outdoor dining area and firepit,” said Khris Pascarella, principal at Pearl Street Partners. “These amenities will provide a high-rise experience without high-rise prices.”

The Edgehill neighborhood has existed for more than 200 years and is currently made up of a number of commercial businesses, single-family and multifamily homes as well as several community churches. Its location is south of downtown Nashville, bordering Music Row and The Gulch.

An affiliate of Starwood Capital provided financing for the project.

“With this project, Starwood continues to identify attractive and growth-oriented Opportunity Zone investment opportunities that create value for our investors,” said Ethan Bing, managing director at Starwood Capital Group.

Crescent Communities is currently the largest multifamily developer in Nashville, with over 2,236 units developed and a total investment of $422.5 million. This will be the sixth community that Crescent and Pearl Street have collaborated on together.

Hawkins and Partners has been tapped as the land planner and landscape architect on the project with KTGY serving as architect and Manual Zeitlin Architects serving as local design architect.

For comments, questions or concerns, please contact David Cohen