As readers of this blog know, we very interested in the potential of the new Opportunity Zones. Siilar to how Amazon is going to leverage OZs, we think we will see a large number of savvy business owners and real estate investors utilize the tax benefits aroud and in Philly.
It looks like just across the river, we could continue to see increased investment in Camden. For those unfamiliar Camden has seen a number of high profile improvements and is currently seeing a number of large investments.
An article in BisNow look at, What’s Next For Camden After Its High-Profile Wins?, and one part of the article that stood out was how Opportunity Zones could potentially impact real estate investing in Camden.
The entirety of Camden has been designated as a Qualified Opportunity Zone. “Opportunity zones are something Conifer has looked at across the Northeast,” Leone said. “At first, it seemed too good to be true, but they just rolled out the first half of the rules and it seems like a great program without a lot of red tape.
There seems to be a lot of investor interest in these opportunity zones, and now you can invest in communities you really believe in and get the capital gains benefits.”
Although questions remain about how effective such an open-ended policy can be in revitalizing a neighborhood, all panelists agreed that Camden, in part because of its desperate recent past, has been more friendly than most communities in the area to change and growth.
According to one developer mentioned in the article:
Projects $5M and below, the true infill of the fabric with 20-30 unit buildings and a little mixed-use, that’s the challenge that has to be met in the next phase.
From Philadelphia to Camden, it looks like Opportunity Zones could play a major role in where a major amount of real estate capital ends up invested.