Opportunity Zone Investment Rebounded in 2H20

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.”

In addition to strong demand for multifamily, the immediate surrounding area also has longevity. “The vibrancy of this area is likely to always attract people excited to live here and we think Adams & Grand is going to be one of the most highly desirable communities to those renters,” adds Burton.

So far, CityView hasn’t made any changes to the design of the property due to the pandemic, but it is looking at options to reconfigure common spaces, including the rooftop and outdoor gathering areas. “In designing all our communities, we like to build spaces that can adapt as needed,” says Burton. “We don’t just build and design for today, but look to potential needs of the future, whether that is changes in way people live and work, changes in technology or unexpected challenges like the current situation.”

This isn’t only true for the pandemic. CityView makes it a habit to adapt to the constantly changing needs of tenants. “We do our research and stay informed on latest trends, both within and outside our portfolio, but since no one can predict the future, we design spaces that are multifunctional and can be adapted for other uses,” adds Burton. “This provides maximum flexibility that allows us to continue to provide an elevated living experience for our residents over time as preferences and needs change.”