Roughly half a dozen New York real estate players have announced plans within the past year to set up related funds, with most looking to raise between $100 million and $500 million.
“There are still a lot of questions,” said Bryan Woo of Manhattan-based developer Youngwoo & Associates, whose firm launched a $500 million OZ fund with the real estate crowdfunding startup EquityMultiple.
Many are scrambling to fill that information vacuum – dozens of law firms with tax or real estate practices have issued white papers detailing potential regulations, commercial brokers are frantically searching for opportune sites, and fund managers are seeking out investors by the thousands.
In addition to OZ funds from SkyBridge and Youngwoo, other planned investments in the city include a $500 million fund from RXR Realty, a $250 million fund from Normandy Real Estate and a $100 million fund from Toby Moskovits’ Heritage Equity Partners.
DJ Van Keuren, a vice president at the office, said families that spent generations building wealth from businesses that had nothing to do with real estate could be reluctant to write big checks to OZ fund managers they’re meeting for the first time.
Blackstone recently raised a record $20 billion real estate fund that would be extremely difficult to put to work at a scale of a few hundred million dollars or less at a time.
Others, including the National Association of Real Estate Investment Trusts, want flexibility on the fixed period that investors have to defer gains into a qualified fund.
Author: Kevin Rebong
Originally Published on February 26, 2019 at 07:10AM
Article published originally via The Real Deal New York https://therealdeal.com/issues_articles/opportunity-zones-new-york/#new_tab