Starwood Capital Group has announced its first deal under a new Opportunity Zone strategy.

The strategy is a mixed use development in the South Bronx will be home to a PK-8 charter school. The group is partnering with New York City developer AB Capstone to develop the 147,000 sqaure foot facility at 425 Westchester Ave.

Lindsay Ornstein, Stephan Powers and Tom Hines of Transwestern represented Zeta Charter Schools in the deal.

The 147,000 square foot project is Starwood Capital’s first deal in the company’s new Opportunity Zone investment program. The storey project will be began this month. Besides, it will include office space for a nonprofit organization and ground floor retail. The asset will feautre floor to ceiling windows and 10,000 sqaure feet of outdoor space. The school is intended to serve hundreds of local families in the area within the New York City borough.

Starwood Capital, that has more than $60 billion of investments under management, launched an Opportunity Zone business in January, with plans to raise $500 million for investments in the federally designed zones. The firm hired Anthony Balestrieri as a senior vice president to lead the strategy. The 2017 tax overhaul created more than 8,700 Qualified Opportunity Zones (QOZs) across the U.S. that offer tax incentives to lure capital into low-income communities.

Source: CP Executive

Fulya Altunyay/ [email protected]