On January 23, 2019, the Los Angeles, California-based CIM Group announced that it’s expanding its focus on investing in Opportunity Zones, as defined under the 2017 Tax Cuts and Jobs Act. The Act provides certain tax advantages for investors who substantially improve assets in these designated Opportunity Zones.
CIM representatives say that—since its inception 25 years ago—CIM has focused on investing in densely-populated communities where it could improve quality of life (and thus property values) via both real estate redevelopment and infrastructure renewal projects.
CIM has been making revitalizing investments in what are now considered “Opportunity Zones,” as a prudent investment strategy long before these areas were considered Opportunity Zones. The Act offers the potential to qualify for added tax benefits from new Opportunity Zone investments in areas in which CIM has already targeted and has been actively developing, repositioning, and operating properties.
Key to maximizing the advantages of the Act’s Opportunity Zone program is the ability to quickly and prudently invest capital. With 65 of CIM’s Qualified Communities already located in Opportunity Zones and having owned, developed, repositioned and operated more than 50 investments in Opportunity Zones, the company is well-positioned with specific market knowledge and vertically-integrated investment, development, and property management teams in place.
CIM currently controls more than $3 billion in assets in areas considered Opportunity Zones, and since 1994, it has invested in properties located in more than 40 Opportunity Zones throughout the country. CIM’s long-standing community-based approach directly aligns with the underlying goals of driving real estate improvements and bringing new businesses to Opportunity Zones.
CIM’s investment strategy primarily targets a “build-to-core” model, where the company leverages its in-house investments, development, and property management teams, which source, develop or reposition, then operate properties as stabilized assets.
CIM is a community-focused real estate and infrastructure owner, operator and lender. Since 1994, CIM has led more than $60 billion of projects in communities across the Americas on behalf of its own account and for its partners and co-investors. CIM’s in-house expertise includes decades of research, acquisition, credit analysis, development, finance, leasing and property management experience in real assets located in and serving densely-populated communities, net-lease assets and other associated credit strategies.
CIM proprietary five-point “Qualified Community” process identifies communities in transitional and thriving areas that are most likely to benefit from its development, repositioning, and operating activities. Using its disciplined approach and extensive in-house expertise, CIM seeks to create value in projects, which ultimately enhances communities.
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