Midway through the life cycle of the federal opportunity zone program, investors are pouring money into projects in the zones at a faster clip than at any point so far in the program's short life, trying to capitalize on the benefits while they can and mitigate some of the financial impact of macroeconomic downdrafts. Nearly five years after the opportunity zone program was created by the 185-page Tax Cuts and Jobs Act of 2017, and three years after its regulations were finalized, opportunity zones have attracted perhaps as much as $100B in investment capital, much of it for real estate development. Qualified opportunity funds, or QOFs, tracked by consultant Novogradac, are on pace to end 2022 with a $10B increase in equity, the largest single-year increase on record. More is to come. Investors continue to be interested in the program, despite stalled reform efforts, economic headwinds and its expiration, which is still scheduled for the end of 2026. 
"I anticipate an uptick in OZ activity in 2024 and 2025, as liquidity starts to free up and investors look to take advantage of program benefits while they still can," Banyan Residential partner Max Friedman said.But in the short term, he expects the turbulent economic climate will have an impact, reducing the…  Read the full story here. | 
