Investors don’t need to go through a fund to take advantage of the Opportunity Zones Tax Incentives
Procida Funding & Advisors, LLC to launch
Opportunity Zone Investment Program
Procida Funding & Advisors, LLC recently announced that it’s establishing a platform to provide one stop shopping for self-directed “Curated” Opportunity Zone Investments. Procida will focus on Opportunity Zones in New York, New Jersey, Pennsylvania and Connecticut.
Opportunity Zones are no stranger to William “Billy” Procida, Founder and CEO of Procida Funding, as he spent most of his life in areas such as the South Bronx and Harlem. In the 1980’s and 1990’s, Procida was one of the most prolific builders in what are now called, “Opportunity Zones.” Procida built thousands of housing units and strip centers under various programs within former New York City Mayor Ed Koch’s $6.8 billion initiative to rebuild New York City. Procida Funding has also completed over $2 billion of loans and investments in places like Paterson, NJ, Camden, NJ, Hackensack, NJ, and the North Broad corridor of Philadelphia, all now “Opportunity Zones.”
“The Opportunity Zone Program was created to encourage those with capital gains to invest in downtrodden neighborhoods and it is one of the biggest things I’ve seen in my 37- year career. As I’ve written and spoken about over the last three decades, improving low-income, high-crime areas is, and has been, amongst the most important issues facing our country. This program will bring billions of dollars to these communities without the gigantic red tape of prior government subsidized programs. The trick for investors will be how to actually implement these investments,” said Procida. “As a taxpayer, I fully support this. However, I caution investors to be careful about who they participate with and how they implement their investments. These neighborhoods have high crime rates, gangs and all the issues associated with low-income residents. However, we proved in the South Bronx, Harlem, Camden and Jersey City in the 80’s and 90’s, if you build the right product and rebuild neighborhoods for the middle class, you will make money and make the world better. Now with this program, you won’t have to pay taxes on your profits and you can do it with tax differed money.”
Procida was the Winner of the 1994 Associated Builders & Owners of Greater New York Developer of the Year Award and the Winner of the 1994 Pillars of the Industry- Best Affordable Housing Development Award from the National Association of Home Builders for his development work at the Melrose Court Condominiums in the South Bronx. In 1990, the Melrose section of the South Bronx was one of the most dangerous places in America. A decade later, after building 275 middle class condominiums, crime is down, graduation rates are up, and billions of investment dollars have flowed in.
“It’s a simple but complex process. Simple in that if you improve a community, crime goes down and values go up, but complex in that it requires more than a typical real estate deal. You need police, private security, some gang relations, minority training, minority and women-owned business involvement, churches and community groups. You need to realize that you’re not just building one project, you’re rebuilding a community. Back in the 80’s and 90’s, I was privileged to work with other great builders, large and small. We were all in it together. In the end, it’s all worth it. It’s good for the pocketbook and good for the soul, and if you are going to build in these areas you better have a lot of soul or you’ll get eaten alive. Just think, if you had invested in Harlem or Jersey City in the 80’s or 90’s and now you could liquidate without paying Uncle Sam… pretty good,” said Procida.
Procida’s services will include identifying the correct investment from size, location and asset class, implementing approvals, overseeing construction, and maintaining compliance with the Opportunity Zone guidelines with the IRS. Procida who authored “How The Real Estate Industry Can Save America” and “Why The Bloods and The Crips Are The Cure for The American Budget Deficit” has been a passionate advocate of fixing America’s inner cities and has closed many articles and speeches with the phrase, “you’ll never go broke doing good.”
The firm currently has loans through the 100 Mile Fund and several approved sites on the Camden Waterfront, North Broad section of Philadelphia and the Rutgers section of Newark to name a few. Procida Funding & Advisors, LLC is a direct commercial real estate lender and advisory firm providing bridge, construction, mezzanine and equity financing through its 100 Mile Fund.
Mid Atlantic Real Estate Journal — Professional Services