On the morning of December 11, 2018, Newmark Knight Frank's Terry Coyne joined an esteemed panel at the Greater Cleveland Partnership's 4th Quarter Middle Market Forum to discuss the topic of Opportunity Zones. The name of the event was entitled, "Opportunity Zones-Redefining Cleveland."
Here are some of Terry's remarks:
"I have been working on opportunity zones for a couple of months now, and there is clearly a tsunami that is occurring. There are a whole bunch of funds that have been started; I think the smallest is $30 million and the largest is $3.5 billion.
The great thing about us (Cleveland) is that pretty much our entire downtown falls within an opportunity zone. Myself and another person in our office (Newmark Knight Frank) listed a property downtown...and we hit the number because of the opportuntity zone investment, and there were multiple bidders. We are clearly seeing an impact on the opportunity zone program and our downtown is going to be a place that people want to invest in.
Most of the opportunity zones in different parts of the country aren't in Central Business Districts like Cleveland. I think you're going to see opportunities in something like the Rockefeller Building, a great example where the land is very valuable but the building needs a lot of work. I'm going to guess that building gets sold shortly because if redone it qualifies for the opportunity zone program.
I've got land in Bedford Heights that we've got designated an opportunity zone with the expertise of Tracey Nichols (of Project Management Consultants) and we've already received offers for far more than we paid for it simply by investors who want to build a building and put it on the land.
The impact of the program is real. It's occurring at a very fast pace. Our company is headquartered in New York, a spin-off of Cantor Fitzgerald, and I can't tell you how many random emails I've received from people on either coast asking if they can invest in properties in Cleveland. The economic impact is happening very quickly. There is far more capital than there are deals."