Transaction Overview
GSP has successfully sourced and brokered the off-market sale of a Los Angeles Koreatown shovel ready multifamily development site in an Opportunity Zone to a mission based community development lender who has just launched an Opportunity Zone Fund. The new tax law allows companies who develop or improve projects located in Opportunity Zones to defer capital gains from the sale of an asset and to reduce or eliminate the taxable gain on the new property.
Originally engaged to place the construction debt, GSP’s Team Shaffer used our expertise in Opportunity Zones and lender relationship with the newly launched Opportunity Zone Fund to match the buyer and seller together. Our long term client, had purchased the multifamily land with a loan arranged by GSP in 2017. They are a very successful developer/owner in Koreatown and have several larger projects starting construction this year, so the opportunity to flip their project for a large gain and work with a buyer who will focus in making the community better, offered a unique way for both parties to achieve their goals.
