Seattle's Opportunity Zones Tackle Housing Affordability
Pinnacle Partners and developer Nitze-Stagen broke ground last week for Seattle's first Opportunity Zone development called Canton Lofts, a $30 million apartment building in the historic Pioneer Square.
SEATTLE—Pinnacle Partners, which is an Opportunity Zone investment firm, and developer Nitze-Stagen broke ground last week on Seattle’s first Opportunity Zone development. The $30 million apartment building located in the historic Pioneer Square is called Canton Lofts. The development will feature 80 units with transit accessibility and provide affordable one-bedroom studios.
“I think that this project and a similar project we funded in Los Angeles near Staples Center exemplifies the spirit of the OZ program-redirect gains into developing O-Zones in need of affordable housing, community impact and job creation. At Pinnacle, we are sourcing these projects exclusively on the West Coast to deliver senior living, workforce housing and industrial projects,” said managing partner Jeff Feinstein.
As part of the Tax Reform Act of 2017, the Opportunity Zones Program helps drive capital to designated communities across the nation by offering substantial capital gains tax breaks for investors who invest in any of the 8,000 designated low-income census tracts. Investors can defer paying capital gains taxes on the money invested in an Opportunity Zone project, and if they keep their money in the zone long enough, they won’t be taxed on returns from the project itself.
“Pinnacle Partners is an early first mover in Opportunity Zones and has been able to close multiple investments and build a strong pipeline of future opportunities before many funds even launched,” said managing partner Leo Backer.