Bridge Investment Group Deploys $509M in Opportunity Zones
David Coelho, the CIO of Bridge’s Opportunity Zone Strategy, talks about the company's investing in 12 assets which are spread across eight markets in the US.
NEW YORK CITY—Bridge Investment Group has invested $509 million in Opportunity Zones, a federal program that offers tax benefits as an incentive for private investments in economically depressed areas.
“Bridge has targeted development and re-development projects to invest in alongside high quality development partners in qualified Opportunity Zones throughout the country,” says David Coelho, chief investment officer for the Bridge Opportunity Zone program. “Our team has deployed capital in 12 assets in eight markets across the US, and we are focused on transit-oriented developments and creating work/live/play communities in areas with an influx of job growth and urbanization.”
Throughout the last decade, the Salt Lake City-headquartered real estate investment and property management firm has invested more than $15 billion of equity in the multifamily, office and seniors living sectors. Having a national footprint and local market knowledge, Bridge focuses on qualified Opportunity Zones that are on the brink of change, or those located inside or near high-growth markets across the US.
The recently announced investments are in Salt Lake City, UT; Queens, NY; New Carrollton, MD; Hayward, CA; Atlanta, GA; Portland, OR; Los Angeles, CA; and Sacramento, CA.
The New York Opportunity Zone investment is a multifamily development with over 300 units in Jamaica, Queens. Additional details about the projects were not disclosed.
“Due to our significant real estate investment experience and ‘boots on the ground’ operating platforms, Bridge is uniquely positioned to identify attractive opportunities to deploy capital and take advantage of this attractive investment opportunity,” says Robert Morse, chairman of Bridge Investment Group. “We continue to see tremendous opportunity in these development projects which are expected to provide meaningful impact on the areas in which capital is invested.”
The Tax Cuts and Jobs Act of 2017 created the Opportunity Zones program. There is an estimated $6.1 trillion of potential unrealized capital gains eligible to invest in Opportunity Zones, according to the Economic Innovation Group. Plus, there are more than 8,700 designated Opportunity Zones.
Investors in qualified Opportunity Zone funds will be eligible to receive a deferral and partial reduction in the capital gains federal taxes due on reinvested gains. If they hold their investments for a required 10-year period, they could benefit from the elimination of taxes on the appreciation of their Opportunity Zone investments.
➤➤ Join the GlobeSt.com ADAPT: Opportunity Zones conference September 16-17 in Baltimore, MD. The new national conference series is aimed at identifying Opportunity Zones across all property types and geographic regions. This first-of-its-kind event will educate, connect and celebrate the investors, developers and owners with the people behind the planning and decision-making, such as architects, consultants, academics and, most importantly, municipal officials.
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