Los Angeles Opportunity Zone market heats up with $58 million in new deals
Three new deals were signed for the Los Angeles Opportunity Zone of $ 58 million. It enters certain federal Opportunity Zones in Cypress Park and Downtown. Long-term investors in these regions can receive significant tax incentives to develop new properties or improve existing ones.
According to a new concept in the LA, which is the basis of the new construction of the City Planning Department from October 2017 to October 2018, more than a quarter of the upcoming housing units and almost half of the commercial space have already been in Opportunity Zones since then, Demand for Opportunity Zones has accelerated.
It is seen that at least one of the last three agreements has in mind the Action Investment Group – Opportunity Zone program.
A local firm led by Mayer Separzadeh paid $ 20 million for commercial installation of the block building on 200-222 W. Pico Avenue and 1312 S. Olive Street in Downtown. The seller was a couple of companies controlled by a well-known local host, Yoav Botach, who founded Botach Tactical, a large arms shop in South L.A. Botach purchased the group in 2016 for $ 10.75 million.
Action Investment was moving through Downtown QOF LLC. Ina QOF F means the Qualified Opportunity Fund. Large and small firms and investors across the country are launching Opportunity Zone funds in order to distribute capital to 8,700 regions nationwide.
For the second deal, a double adjacent warehouse at 405 N. San Fernando Road and 400 N. Avenue 19 was sold for $ 23.8 million. It was both the buyer and vendor LLC. Fifteen Group-owned properties, a Miami-based company with a local office in LA, were recently sold for $ 17.2 million in 2016 and were on the market as development opportunities, according to a profile at LoopNet. .
For the third agreement, GCX, a developer affiliated with Gaw Capital Partners, bought two buildings at 3200-3217 N. Figueroa Street in Cypress Park and purchased it for $ 14.3 million.
The Arya Ice Cream dealer was the food distributor. The property was purchased in 2001 for $ 1.7 million.
Yoav Botach for Action Investment Group and Arya Dondurma didn’t respond to comments. Gaw Capital Partners and Fifteen Group declined to comment.
Source: The Real Deal
Melike Vodina / realesatecoulisse.com