Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Viktor Simco is the associate director of investments at Paloma Realty Partners in Venice, CA.

While still very much in its infancy, we are approaching the first year mark on the release of the $1.5 trillion tax cut signed by President Trump. Since its inception, an often overlooked section on page 130 has been gaining more traction with venture capitalists, state government officials, individual investors, and family offices alike. The provision unveils the 8,700 ‘Opportunity Zones’ around America with an average poverty rate of 32% and unemployment rate of 13%. This initiative hopes to be rejuvenate these designated tracts by providing tax incentives and deferred capital gains for long-term investors. This program was kickstarted to address the deeply uneven economic recovery from the Great Recession. About 10% of the U.S. population lives in an Opportunity Zone and less than one quarter of U.S. counties had gained back the number of businesses they lost to the recession. These demarcated areas range from parts of New York, Los Angeles, Washington D.C., some rural areas and the entire US territory of Puerto Rico. Treasury Secretary Steven Mnuchin recently predicted the zones will attract over $100 billion in private capital, yet multiple uncertainties remain unresolved. “This is the biggest initiative of this type by the federal government with the least debate, the least staff support, the least research and still the least clarity,” says Los Angeles Mayor Eric Garcetti.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.