Bridge has always been at the forefront of community revitalization. We are a first mover.
In December 2017, the Tax Cuts and Jobs Act (“TCJA”), was passed as a new tax incentive to stimulate the U.S. economy by encouraging long term private investment in America’s underserved communities. Effective April 2018, the U.S. Department of Treasury approved 8,741 Qualified Opportunity Zones (“QOZs”) which were nominated and designated as QOZs by the Chief Executive of each state and U.S. territory.
Through this recent tax legislation, investors can roll over eligible capital gains into QOZs to access substantial tax benefits including deferral of capital gains tax, partial reduction of tax on deferred gains, and tax-free returns on QOZ investment.
We invest in markets we know well and have the ability to provide value for our investors through our vertically integrated national investment, operating and development platform as well as our extensive developer network.
Given Bridge’s longstanding expertise in real estate investing across several verticals, its development network and robust property management team, the launch of this opportunity as a Bridge strategy is a natural extension of our existing offerings.
Additionally, we serve as a member of the Opportunity Zone Coalition organized by the Economic Innovation Group (“EIG”), which maintains direct advocacy to the U.S. Department of Treasury, allowing us to benefit from real-time knowledge and insight into regulatory developments. In January 2019, Bridge Development Fund Manager LLC launched the opportunity zone strategy (“Bridge Opportunity Zone Fund Program”) to capitalize on the tax legislation and resulting tax benefits.
We have carefully identified a subset of QOZs with significant overlap with the high-growth markets in which we have been investing in for nearly 28 years, which we believe have strong economic promise and can provide attractive investment returns on a stand-alone basis, allowing investors to gain exposure to diversified portfolio of development projects in addition to the long-term tax benefits available through the new legislation and our strategy.
As of Q3 2020, the team maintains visibility into $1.4 billion of equity in identified and attractive development projects across the U.S.
Key principals for this strategy have development expertise in projects representing $6.5 billion of capital across multifamily, office, seniors housing, industrial, hospitality and retail property types with over 12,500 units and 17.6 million square feet.