$11M Santa Rosa housing project tests new opportunity zones for real estate investment

North Bay Business Journal

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By Jeff Quackenbush

July 24, 2019

A four-story mixed-use building under construction in central Santa Rosa is on the leading edge of a new way to attract investors to projects in California and nationwide in economically challenged areas.

A local funder of Hugh Futrell Corporation’s Art House project at Seventh and Riley streets used an investment vehicle that rolled out with the 2017 federal Tax Cuts and Jobs Act and recently has come to fruition in Cailfornia and other states. The midrise building is in one of 879 qualified opportunity zones in California, including 21 in the North Bay, designated by Treasury Department in April 2018.

The Internal Revenue Service only this past April released guidelines on how qualified opportunity funds for tax-deferred investment in those zones would work. That regulatory clarity seems to be generating activity.

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