“If a developer opted out of the approved plans, an assisted living facility or hotel are other options,” said Peter Messina, a CBRE first vice president who is marketing the property.

He echoed Rosen in saying the OZ location is a bonus for the buyer.

“We think that that enhances the opportunity in that you have just one more asset to this project that should make it attractive to potential buyers. So now there’s an opportunity to save money that normally would be paid in taxes and could yield a higher profit for the developer,” said Messina, based in Fort Lauderdale.

There is no asking price for the Aventura and Omni properties.


The amount of a tax break a developer gets depends on how long he keeps his capital gains invested. A five-year investment means 10% of the capital gains won’t be taxed, and a seven-year investment means 15% of the capital gains won’t be taxed. A 10-year investment means the capital gains from the OZ project itself won’t be taxed.

Rosen said the OZ vehicle might be something that helps clients offset rising construction costs, including more expensive concrete and steel. He mainly represents opportunistic investors, or those who see potential in untapped areas. Still, he reiterated the OZ is something developers consider after other aspects of a deal have been weighed.

“They don’t pigeonhole themselves saying, ‘We need to be in an opportunity zone.’ That could pigeonhole them,” Rosen said.


Source: GlobeSt.