In Dallas, Texas, the development community awaits the release of final rules later this month by the IRS for Opportunity Zones. Many Opportunity Zones, which are economically-distressed communities where new investments may be eligible for preferential tax treatment, are within areas that are poised for growth, including medical districts. With investors lining up deals within the zones, Bisnow interviewed Tom Adamek, president of Stonehenge Capital and panelist in the upcoming Bisnow Texas Opportunity Zone Summit.
According to Adamek, Opportunity Zones near hospital facilities will soon be in high demand. For Dallas in particular, Methodist Dallas Medical Center is located near a potential Opportunity Zone, along with other Opportunity Zone sites near established hospitals. “The Parkland Hospital area ... would be one that is ripe for development," Adamek said. "There are green shoots in that area already and this would really kick-start redevelopment in that area."
As for what types of developments will be first in line for investments, Adamek has some ideas. “I think the first ones that you are going to see are going to be mixed-use developments or multifamily," he said."I think there is a real need for housing in that area [around the urban core] — kind of just redeveloping that urban core. And some of the deals that we have seen already that are looking for opportunity zone money are multifamily in that area."