Charles ClintonWASHINGTON, DC—Since the release of the latest round of rules for Opportunity Zones at the end of last week, investors have been combing through the document to see what is allowed. One conclusion reached by Charles Clinton, CEO and co-founder of EquityMultiple, is that the bar for rehab projects was lowered significantly in terms of how much money needs to be invested in order for it to qualify.
Investors have to double the basis when improving a project and the new rules made clear that they are not excluding the value of the land in calculating whether the value of the property has been doubled, he tells GlobeSt.com. “So if you buy a building, then all you have to do is double the value of the actual improvements to the property—just the building, not the land and the building.”
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
