A short while ago, we discussed the advantages of opportunity zones in New York City. Now, with the recent news that Amazon is coming to NYC – specifically to a designated opportunity zone – commercial real estate investors see doors opening to grow their portfolios and revenue.
East River Properties
Amazon is going to build its new campus on New York City’s East River waterfront. Once built, the campus will bring roughly 25,000 new jobs to the area. For commercial real estate investors and developers, this means two things. First, people coming to work at the campus are going to need housing. Second, businesses are going to be looking to lease properties nearby. This has opened up a small but frenzied rush to get properties ready from now until construction on the campus has completed.
The East River Opportunity Zone
When the Tax Cuts and Jobs Act passed last year, it designated certain parts of NYC as opportunity zones. On the commercial real estate side of things, opportunity zones allow investors to defer capital gains taxes provided they invest in designated distressed communities. Amazon is moving into one such opportunity zone. To fully take advantage of the benefits of opportunity zones, commercial real estate investors must hold onto their properties for a minimum of ten years. Since Amazon is going to be around for quite some time, investors using a long-term strategy stand to gain the most with properties around the new campus. In short, this particular opportunity isn’t for property flippers.
The Best Properties Near Amazon
Right now, storefronts and multifamily properties are the safest bets for investors looking to acquire revenue-generating real estate near Amazon’s future campus. More robust investors may see the obvious opportunities that come with owning warehouse and storage space near the East River. Experts warn against franchises because no one on the outside knows for certain what services are going to be offered inside the campus. It is not unusual to structures of this size to offer everything from a commissary to an on-campus gym.
Making the Most of Amazon’s Opportunities
Investors, property management companies, market speculators, developers, and construction companies are all looking at the commercial real estate opportunities surrounding Amazon’s new campus. At Express Capital Financing, we provide commercial real estate solutions so you can acquire, renovate, or build along the East River. We offer everything from conventional loans to ongoing financing for long-term construction projects. Contact our offices today and strike while the iron is hot.