Opportunity zone investment rebounded in the second half of 2020 after halting at the onset of the pandemic. Developer CityView recently acquired a Southern California development site in an opportunity zone, and saw the changes in demand during the pandemic. The property is located near USC and CityView plans to build a $125 million, 296-unit apartment property on the site.

"This project does sit within an opportunity zone and we successfully raised all the necessary equity from opportunity zone investors.  We did see a general slowdown in opportunity zone fundraising early in the pandemic, but saw that pick up in Q3 and Q4 of last year," Sean Burton, CEO of CityView, tells GlobeSt.com.

Despite the market change, the developer has continued to be bullish on opportunity zone assets, especially for multifamily assets. "We believe that people will always need a place to live and the key is providing desirable housing at a reasonable price in areas people want to live," says Burton. "We do not have concerns about demand for Adams & Grand when it delivers in approximately two years because we believe this project, situated near downtown and seven colleges, universities and trade schools, is going to appeal to a broad demographic of renters looking to live near those schools or seeking a less crowded, more affordable alternative to downtown."