Shopoff Realty Investments has launched its first qualified opportunity zone fund. Called the Shopoff DLV QOZ, the fund will have a maximum equity raise of $200 million, and it will provide equity for construction of the Dream Las Vegas hotel, a $545 million project.

Shopoff says there are no other opportunity zone projects on the Las Vegas strip for high-end hotels, making this deal an anomaly. There are few development sites on the strip that could accommodate a project like this. In addition, hotel construction, particularly in the luxury market, has been rare since the start of the pandemic as these properties are experiencing the biggest declines in occupancy and RevPAR across geographic markets.

Shopoff is not breaking ground on the hotel until late 2021 with completion scheduled in 2023. The hotel will have 450 rooms along with dining and nightlife venues, including 42,000 square feet of gaming. Already, Shopoff has secured Stateside Kitchen. Shopoff will hold the hotel for 10 years to take full advantage of the tax benefits.