November 7, 2019

The Opportunity Zones in NYC With Breakout Potential

Mentions News

Commercial Observer

Of the 514 opportunity zones in New York State, more than half are in the five boroughs of New York City. They range from yuppy enclaves in Williamsburg to developing neighborhoods like Bushwick to overlooked areas like Highbridge in the Bronx, where the poverty rate is 36 percent. 

Broadway Junction | CO’s Grade: A

Broadway Junction sits at the crossroads of five neighborhoods in Brooklyn and six subway lines. Located just past Bushwick and Bed-Stuy, at the far end of the L line, it’s an area that’s poised for growth — and it’s entirely opportunity zoned. 

In 2016, under the East New York Neighborhood Plan, the city promised to invest more than $250 million in the area, which includes Broadway Junction. In August of this year, the city put forth its initial plan to revitalize the transit hub and the block surrounding it.

“Brooklyn has been high demand, regardless of opportunity zones,” said Dan Marks of TerraCRG. “[The program] increased the buyer pool, but that doesn’t necessarily reflect on a higher value for that property.” One factor to consider, Marks said, is that condos don’t benefit from the opportunity zone program and in hot areas, a buyer might be outbid by a condo developer. On the other hand, areas that are ripe for rental development, particularly areas that are being rezoned — like East New York or Gowanus — are particularly attractive for opportunity zone capital. 

Read the full article here