Opportunity Zones and Retail Assets Among Best CRE Bets for HNW Investors in 2019

December 5, 2018 | National Real Estate Investor

John Egan

As high-net-worth (HNW) investors zone in on commercial real estate opportunities for 2019Opportunity Zones, multifamily, marijuana, retail and industrial are emerging as some of the key areas to watch.

1. Opportunity Zones

Among real estate professionals contacted by NREI, the topic of Opportunity Zones surfaced to the top. Experts anticipate that next year many HNW investors will seek to capitalize on the federal tax reform legislation passed in 2017 that included the establishment of Opportunity Zones. The provision allows for deferment of capital gains taxes for investment in ground-up and redevelopment projects in economically depressed locations.

Across the U.S., government officials have designated 8,700 Opportunity Zones, ranging from several-block-long urban stretches in big metro areas to entire towns in rural states, according to the 2019 Emerging Trends in Real Estate report, published by professional services firm PwC and the Urban Land Institute (ULI).

Opportunity Zones are a “major focus” of HNW investors, according to Neil Madsen, founding principal of New York City-based real estate consulting and management firm Madsen Advisors LLC

“I expect there to be a lot of activity next year with Opportunity Zones, but I wonder whether the actual investment opportunities will materialize fast enough to absorb the available investment dollars,” Yustein says.

Still, Opportunity Zones could have a “meaningful impact” for HNW investors, according to Lee Roberts, managing partner of SharpVue Capital LLC, a Raleigh, N.C.-based wealth management firm.

“As with all tax provisions, though, it’s important not to let the tail wag the dog—it has to be a fundamentally sound real estate investment first,” Roberts says.

Read more.

Recent Articles

Moving Beyond LEED

The next steps in the green-building revolution may be more complex and expensive Lee H. Roberts – Scotsman Guide The push in the U.S. to

Read More »

SharpVue has deep experience investing alongside Independent Sponsors.

What we offer Independent Sponsors:

  • Flexible capital structures, including the ability to invest meaningful equity for a one-stop solution
  • Network of investment partners and industry experts
  • Deep experience partnering with Independent Sponsors
  • Tailored approach to governance and board structures

Lee Roberts

Managing Partner

Lee co-founded SharpVue and leads its real estate investment effort. He has spent his 25+ year career in real estate investment and finance and has been involved in the sector in several contexts, including private equity, investment banking and commercial banking. Immediately prior to SharpVue, he served as budget director for the State of North Carolina, a role in which, among other initiatives, he led an effort to rationalize the state’s real estate portfolio.

Before his time in public service, Mr. Roberts was most recently Managing Director of Piedmont Community Bank Holdings, a private equity-backed bank investment platform in Raleigh. He was earlier a Partner at Cherokee Investment Partners, a real estate private equity fund in Raleigh, and he spent nine years with Morgan Stanley in London and New York, focused on real estate investment banking.

Education: Georgetown, JD; Duke, BA

SharpVue is committed to being a responsible corporate citizen. We believe that integrating environmental, social, and governance (“ESG”) considerations into our investment processes and firm policies supports value creation for all stakeholders.

  • In reviewing potential investment opportunities, we evaluate multiple factors including ESG considerations. We seek to identify ESG strengths and risks and incorporate them into our investment decisions and portfolio monitoring.
  • We aim to promote ESG awareness and accountability within the firm. Our ESG actions include:
    • Environmental: We endeavor to operate in an environmentally responsible manner by reducing waste and raising awareness of efficient energy and resource usage.
    • Social: We strive to maintain an environment free of discrimination in which all employees are provided opportunities for personal development and growth.
    • Governance: We maintain strict internal policies that emphasize firm governance, compliance, and ethical employee behavior.