Real Estate Investment Opportunities
Real Estate Investment Opportunities zone created as part of the 2017 tax reform law is changing the Charlotte landscape.
An opportunity zone is a low-income area in which the poverty rate is 20% or higher. This includes median family income below 80% of the area’s overall median income. Once an area qualifies as an opportunity zone, states were permitted to designate 1/4 of the qualifying Census tracts.
According to a recent report by Charlotte Agenda, “North Carolina had about 1,000 qualifying tracts — nearly half of the entire state — and thus was able to select 252 as opportunity zones.” Mecklenburg County received the most of any county in the state at 17. The zones are mostly in the northwest quadrant with a small cluster in eastern Charlotte.
Capital Gains Income
Capital gains income is money made on the sale of any type of assets such as stocks, land or business shares. Anyone with capital gains income can invest in opportunity funds that make opportunity zone investments. Investors who put their capital into real estate or businesses in opportunity zones can see their taxes significantly reduced.
What happens in these opportunity zones naturally will change the community. Needed real estate investment will increase property values. “While this could create mixed-income neighborhoods, it could also drive low-income renters out of their homes,” Charlotte Agenda reports.
One area of particular interest is Rozzelles Ferry, which the city has identified as having warehouse and industrial space that could be renovated for loft apartments and/or flex industrial and office space.
On the other side of the city, Eastland Mall is primed for development — and owned by the city. Built-in 1975, the former Eastland Mall was situated on 90 acres located about five miles east of Charlotte’s City Center. The site on Central Avenue near Albemarle Road has been empty for eight years. In October 2018, Charlotte City Council voted into a partnership with a development group. The development group is led by Crosland Southeast, in collaboration with two other local firms: Eastland Development Corporation, Inc., and Odell Associates. Planning is underway now.
“I hope that whatever it will become has its own identity and is unique and special,” said Mike Sullivan, who co-chairs CharlotteEast, and is a member of the Charlotte-Mecklenburg Planning Commission and a commercial real estate broker. “We are not looking for something that will be another corporate location, but something that is authentic.”
REF: Charlotte Agenda Article – Opportunity Zones