Opportunity arises across Phoenix, new zoning designations offer long-term tax benefits
- As of April 2018, the US Treasury Department has finalized the designation of opportunity zones within Arizona, allowing investors to access long-term tax benefits if involved in opportunity funds on a 5, 7, and 10 year basis.
- An abundance of potential lies within the heart of the metro, as almost all of Downtown Phoenix has found itself within an opportunity zone. Although the details have yet to be clearly defined, a property can be “substantially improved” rather than built anew to qualify for tax benefits; something that Downtown can take full advantage of due to lack of free space.
- The currently under construction loop 202 south mountain freeway extension bridges West Phoenix directly into the central, southern zone seen above (Wild Horse Pass). The upcoming accessibility coupled with tax benefits could attract willing developers in the near future.
- Virtua Partners currently leads a 90 unit multifamily project in Tempe; the first project within the boundaries of an opportunity zone in the metropolitan area, scheduled to deliver in the next 16 months.
Source: JLL Research, AZ Commerce Authority