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When the opportunity zone program was launched in 2017 with the goal of steering capital gains funds into underserved communities, it wasn’t always easy for investors and developers to navigate. Tract designations and Treasury guidance lagged behind the law, and reporting was spotty at best, making it difficult to know the true impact of the program.
That was all before OZ 2.0. The new iteration of the program comes with significantly fewer eligible tracts, clear reporting requirements and incentive adjustments, including a 30% basis step-up for rural investments, compared to 10% for standard urban tracts.
Now that the playing field has gotten much smaller, what does that mean for investors? To answer this question, Bisnow Editor-in-Chief Mark Bonner sat down with Clarion Partners Managing Director Jason Glasser. Clarion is one of the most active OZ investors and supported Bisnow’s report on the new program: Inside The Nationwide Jockeying For Opportunity Zones 2.0.
Glasser said Clarion is looking for opportunities that will suit a wide range of tenants with a low level of obsolescence.
“We want to build that apartment community or that build-for-rent home that a young professional or empty nester can see themselves in,” he said.
In the zones it is eyeing, Clarion is seeing opportunities for warehouse distribution space, apartments, senior housing and more, Glasser said.
To find out more about Clarion’s opportunity zone plans and Glasser’s thoughts on the future of the program, watch the video below.
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