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Investors are lining up to buy projects in qualified opportunity zones and take advantage of the subsequent tax benefits, but the capital gains tax forgiveness is one of several benefits that come with opportunity zone investments. Access to capital is among one of the major benefits of these zones, starting with cheaper capital.

“Traditional equity capital is focused on the best sponsors, locations, and projects. But, much like EB5—which encourages non-U.S. citizens to invest in real estate in exchange in for a benefit of citizenship from the U.S. government—qualified opportunity zone investors will receive tax benefits for investing in qualified opportunity zones and qualified opportunity zone funds,” Bryan Shaffer, principal and managing director of George Smith Partners, tells GlobeSt.com. “We believe the investor will receive 200 to 400 basis points in tax benefits, so a developer will be able to obtain cheaper capital for projects located within a qualified opportunity zones.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. He work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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