StarPoint Properties, a leading real estate investment firm focused on undervalued commercial properties, announced that they are under construction on the two opportunity zone projects totaling $115 million. StarPoint commenced vertical construction for two Opportunity Zone funds: Lotus Point, a $79.2M multifamily development located in Mesa, Arizona and Point Central, a $36.7M industrial development in Denver, Colorado.
As a result of StarPoint’s 25-year plus track record and legacy of long-term relationships with high-net-worth investors, the firm was able to expediently raise the equity from a combination of existing and new investors.
“As a result of the developments’ Opportunity Zone designations, our investors will realize significant tax benefits” said StarPoint’s CEO and Founder, Paul Daneshrad. Taylor Trautloff led the equity raise for both Lotus Point and Point Central, noting that “investor interest came from a mix of real estate investors who elected to do an opportunity zone project over a 1031 exchange, and tech investors and business owners who realized a capital gain.”
Lotus Point will be a 245-unit, 4-story garden-style multifamily community. The Project is located near the intersection of Dobson Road and Main Street, less than one-mile away from the SR-101 freeway and a five-minute walk from a Metro light-rail stop. Mesa serves the growing workforce population in the area which is projected to grow by 84.1 percent by 2060. Additionally, the development will benefit from a GPLET (property tax abatement) agreement with the City of Mesa for 8 years after construction, which will generate significant property tax savings.
The other property announced is Point Central, located at 1051 & 1161 East 73rd Avenue, Denver, Colorado, is a centrally located industrial development project which sits on 9.54 acres and will serve as a hub for urban expansion. Upon completion, Point Central will consist of approximately 157,473 rentable square feet split across two buildings with access to Denver’s major highways (25, 270, and 76), all of which are within one mile of the site. Denver is one of the top growth markets in the US and the Denver metropolitan area population grew 16.5% in the past 10 years. The North Central submarket has a limited supply of available infill industrial land, and this site presents a rare opportunity to build high quality industrial product within the central urban area. Both properties are set to complete construction in 2025.
StarPoint’s Head of Development and Acquisitions, Sandy Schmid, said that he anticipates Lotus Point to be stabilized by the fourth quarter of 2025 and he anticipates Point Central to be stabilized by the second quarter of 2025.
The Opportunity Zone Program was created and designed to spur economic growth in underserved areas across the United States. Qualifying capital gain investments in Opportunity Zones receive significant tax benefits after a 10-year holding period, including no depreciation recapture and no capital gains taxes upon sale of the project. Currently, there are 8,764 designated Opportunity Zones in the country.
