7 World Trade Center, 250 Greenwich St., Silverstein Properties headquarters
NEW YORK CITY—Silverstein Properties and the financial services firm Cantor Fitzgerald have entered into a joint venture focused on acquiring and developing real estate projects located in Opportunity Zones defined by the 2017 Tax Cuts and Jobs Act.
The legislation that passed in December 2017 offers tax benefits for investments made in designated, qualified areas of low-income communities. The joint venture points out that more than $6 trillion of potential capital gains are eligible for reinvestment in Opportunity Zones according to the bipartisan, public policy think tank Economic Innovation Group.
The joint venture will target investments in Opportunity Zones with third-party developers, as well as large-scale projects that Silverstein Properties will develop. All sectors of qualifying real estate industry investments will be considered. This includes retail, office, industrial, hospitality and multifamily developments in major metropolitan markets.
The companies point to their significant collective experience across all aspects of commercial real estate including acquisition, development, asset management, underwriting and leasing as well as financial and market analysis. They underscore this is critical in developing a successful Opportunity Zone strategy.
Marty Burger, CEO of Silverstein Properties, states that the Opportunity Zone program would enable the two companies to continue directing capital to areas in need on a much larger scale. “Cantor Fitzgerald's national reach will bring a local market knowledge and breadth that complements our expertise in real estate development and management as we build our Opportunity Zone investment portfolio together,” he says.
“We have a unique, long-standing connection with Silverstein Properties and a shared commitment to investing in communities and improving lives,” says Howard Lutnick, chairman and CEO of Cantor Fitzgerald. “Silverstein Properties is one of the country's leading developers, and this joint venture enables us to quickly grow our Opportunity Zone investments to the benefit of the local communities.”
As a global financial services group Cantor Fitzgerald LP has over 12,000 employees. Cantor Fitzgerald & Co. is an investment bank with more than 7,000 institutional clients around the world. Founded by Bernie Cantor in 1945, Cantor Fitzgerald has been led by Lutnick since 1996. Larry Silverstein began in real estate in 1957. These leaders of the two firms have worked closely together over the years as their businesses have grown. They share a historical connection to the tragic events at the World Trade Center, both having roles in the recovery and rebuilding that followed.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
