Bridge Investment Group, a privately-held real estate investment management firm, has deployed $509 million in its opportunity zone strategy, the Bridge Opportunity Zone Fund Program, which targets development and redevelopment projects in often-underserved areas, the firm said on July 9.
In January 2019, Bridge Development Fund Manager launched the opportunity zone strategy to capitalize on the tax legislation and resulting tax benefits, according to the firm’s website.
The Qualified Opportunity Zone program was created under a provision of the Tax Cuts and Jobs Act of 2017 to encourage private capital investments in underfunded communities throughout the United States, according to Bridge Investment Group.
There is an estimated $6.1 trillion of potential unrealized capital gains eligible to invest in opportunity zones, according to the Economic Innovation Group, and more than 8,700 designated opportunity zones.
Investors in qualified opportunity zone funds will be eligible to receive a deferral and partial reduction in the capital gains taxes due on such reinvested gains and may benefit from an elimination of taxes on the appreciation of their opportunity zone investments subject to a 10-year hold period.
“Bridge has targeted development and redevelopment projects to invest in alongside high-quality development partners in qualified opportunity zones throughout the country,” said David Coelho, chief investment officer for the strategy in a statement. “Our team has deployed capital in 12 assets in eight markets across the United States, and we are focused on transit-oriented developments and creating work/live/play communities in areas with an influx of job growth and urbanization.”
Bridge has invested more than $15 billion of equity across its multifamily, office and seniors living verticals. The firm focuses on qualified opportunity zones at an inflection point, or those located inside of or in close proximity to high-growth markets across the United States, including Salt Lake City; Queens, N.Y.; New Carrollton, Md.; Hayward, Calif.; Atlanta; Portland, Ore.; Los Angeles; and Sacramento, Calif.
Bridge Investment Group has more than $16 billion in assets under management.