The floodgates appear to be opening. FCP, a privately held real estate investment company, is ready to dole out capital for projects in or around Opportunity Zones.
This is an early example of what could become an absolute landslide of capital pouring into the Opportunity Zones called for in the Tax Cuts and Jobs Act of 2017.
These zones are meant to spur economic growth in undercapitalized areas around the nation with significant tax incentives offered to investors who deploy and keep their capital working in these zones long-term.
A research bulletin from Yardi indicates that funds slated for Opportunity Zone investment could draw as much as $30 billion in capital over the next few years.
According to its release, FCP will be issuing capital to projects in or adjacent to Opportunity Zones on the East Coast and in Texas, offering bridge capital to option, entitle, buy, renovate and/or build multifamily, commercial or mixed-use real estate in Opportunity Zones within those areas.
FCP also has its eyes on funding bigger projects and will offer credit support, development advisory, mezzanine, preferred equity and long-term capital for deals involving assets upwards of $25 million in value.
"We believe the Opportunity Zone program is a catalytic tax initiative that will drive development and provide a benefit to the greater community," FCP Senior Vice President Jason Ward said in a statement. "We want to provide capital and development expertise to help execute these investments."