Bridge Investment Group, based in Sandy, Utah, is diving into the Opportunity Zone (OZ) business in a big way and looking to combine it with transit-oriented development. The firm recently announced it has dedicated $509 million into an OZ effort targeted at several prime spots for development. “Our team has deployed capital in 12 assets in eight markets across the U.S., and we are focused on transit-oriented developments and creating work/live/play communities in areas with an influx of job growth and urbanization,” said David Coelho, chief investment officer for the Bridge OZ strategy.
Throughout the last decade, Bridge has invested over $15 billion of equity across its multifamily, office, and senior living verticals. Besides Utah, the company also maintains offices in Atlanta; Orlando, Fla.; New York City; and San Mateo, Calif.
“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,” said Robert Morse, chairman of Bridge Investment Group. “We continue to see tremendous opportunity in these development projects.”
OZs were created by the Tax Cuts and Job Acts of 2017 and have been touted as a way to help give low-income communities a hand up by providing tax incentives to investors to encourage development. Taxes on capital gains can be deferred if the proceeds go into a fund that invests in an OZ. More than 8,700 OZs have been identified across the country since the bill became law.
Bridge is specifically focused on opportunities in Atlanta; Hayward, Calif.; Los Angeles; New Carrollton, Md.; Portland, Ore.; Queens N.Y.; and Sacramento, Calif. The wheels are already turning in Queens as Bridge recently partnered with New York-based Shorewood Real Estate Group and the Capricorn Investment Group LLC, also based in New York. The as yet unnamed project will be a $155 million, 315-unit rental Community in Jamaica, Queens, which is served by three New York City Subway lines.
"We're excited to align ourselves with such distinguished partners on this important project," said Shorewood president and CEO S. Lawrence Davis. "With our firms' combined experience in urban real estate, I'm confident this partnership will have a positive impact in Jamaica and other future community development projects."
Bridge Investment Group is a privately held real estate investment management firm with $16 billion in assets under management. Founded in 2001, Capricorn Investment Group boasts a $5 billion multi-asset class portfolio that focuses on sustainable investments including renewable energy, renewable resources, clean technology, health and wellness, and energy efficiency.
