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Opportunity Zone Analytics

We know Opportunity Zones

Opportunity Zones (OZs) were created as part of the Tax Cut and Jobs Act of 2017.  OZs are census tracts where investors can invest in order to receive capital gains tax relief and deferral.  The Department of the Treasury has issued two rounds of OZ guidance in October 2018 and April 2019

SP Group has been following the OZ tax incentives since its inception.  Our research on Opportunity Zones is used by current clients to empower their decisions and has been featured on GlobeSt.com.  We provide objective, independent recommendations based on real data and solid analysis.

Here's how we can help

• Assessments.  SP Group offers its clients confidential, independent assessments of Opportunity Zones and Opportunity Zone projects.

• Focus.  We identify the Opportunity Zones that have the greatest potential for economic growth and an acceptable level of risk.

• Tools.  SP Group uses proprietary databases and algorithms for Opportunity Zone analytics.

• Background.  Our extensive background in real estate project underwriting and feasibility stress testing enables our recommendations.

SP Group in the News

"...Since the Opportunity Zone program does not come with any restrictions with respect to rents and/or people who live in the Opportunity Zone properties, investors who make substantial new investments or improvements to the properties, will set the rents at levels that provide them with adequate financial returns, Damani tells GlobeSt.com.

If current median gross rents rise by approximately 30% as a result of construction/renovation activity under the program, about 80% of the Opportunity Zone census tracts would become rent burdened, explains Damani..."

“"...There are at least two types of real estate investors in Opportunity Zones – those that are drawn to a particular location for reasons that have little or nothing to do with the fact that the location is in an Opportunity Zone and those who are making strategic choices to invest in one Opportunity Zone versus another,” says Pratima Damani, CEO and Founder, SP Group.

The first investor may have ties to a particular community or simply believe that it is the best place to park her money. The strategic investor recognizes that long-term gain is more likely to occur in locations that have both an attractive current pricing structure for rents and costs and the potential for growth.

As investors determine which areas will recognize the best ROIs, the SP Group’s report concluded there were certain characteristics of the targeted areas they believe are excellent for investments.

“Although we ran some fairly sophisticated models, the core characteristics relate to two things: rent elasticity and potential for economic growth,” says Damani..."

From SP Group's Blog

SP Group identified 4,883 census tracts with the opportunity to "stack" LIHTC and Opportunity Zone incentives to maximize their return on investment.

There are at least two types of real estate investors in Opportunity Zones, those that are drawn to a particular location for reasons that have little or nothing to do with the fact that the location is in an Opportunity Zone per se and those who are making strategic c...

The housing industry is buzzing with excitement over the prospect of massive investments in Opportunity Zones.  New Opportunity Funds are emerging almost daily.  Some investors are waiting until additional guidance is issued concerning the finer points of investing in...

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