Unfamiliar with the Opportunity Zone program? Before you read this, you can check out our overview of Opportunity Zones and how to invest.
If you’re looking to invest specifically in New York Opp Zones, continue on.
Opportunity comes in many shapes and sizes in New York. And when it comes to commercial real estate investment and development, Opportunity Zones are making that sentiment ring truer than ever before.
Qualified Opportunity Zones (QOZs) span the entire state of New York—they can be found across NYC’s five boroughs, to the beaches on Long Island, and the mountains upstate.
In this article, we’re going to give an in-depth overview of the Opportunity Zones in New York State and City, then show you how you can easily search and find investment properties in any QOZ, anywhere in New York.
Table of Contents (Click to Jump to Section)
- NYC Opportunity Zones
- New York State Opportunity Zones
- Long Island Opportunity Zones
- Search Opportunity Zone Properties with Reonomy
- New York Opportunity Zone Mapping Tool
- New York Opportunity Zone Funds
Opportunity Zones in New York
The Opportunity Zone program spans the entire contiguous United States, as well as Hawaii, Alaska, Puerto Rico, American Samoa, the Virgin Islands, and the Northern Mariana Islands.
In other words, QOZs are everywhere—there are more than 8,700 nationwide consisting of nearly 7 million commercial properties in total.
Because of New York’s existing prominence, it stands to benefit tremendously from the entrance of Opp Zones. New York’s qualified areas, while perhaps distressed, carry much less investment risk given the existing stature of the state (especially areas nearest NYC).
Opportunity Zones are taking NY’s potential as a CRE investment market to entirely new heights.
Overview of Opportunity Zones in New York
In total, the state of New York has more than 2 million commercial properties—750,000 of which are in NYC.
Across the entire state, there are 514 designated Opportunity Zones. The only locations that surpass that total are California (879), Puerto Rico (861), and Texas (628).
235,000 of New York’s commercial properties fall within QOZs, leaving a ton of investment opportunity on the table.
It also requires, however, a ton of research and the right resources to ensure that your dollars are being reinvested in the best places.
So then, let’s look a bit deeper at each section of New York and its Opportunity Zones.
New York City has long been considered a place where endless opportunity awaits. Thanks to Opp Zones, that sentiment may now be truer than ever for CRE investors.
Out of NYC’s 750,000 commercial properties, 94,000 are within Qualified Opp Zones, spread out across all five boroughs and 306 Opportunity Zones.
From an investment standpoint, logic tells us that money will continue to move through safer investment markets, pushing development even more into areas where it’s likely already happening to some degree.
As much of NYC is within or near areas that are already developing, Opportunity Zones could increase the breadth of commercial investment throughout the city.
Manhattan Opportunity Zones
There are more than 135,000 commercial properties in Manhattan (New York County, to be exact). 7,800 of those properties are located within Qualified Opportunity Zones.
As you might expect, multifamily properties make up the bulk of commercial properties in Manhattan. Roughly 72% (5,600) of New York County Opportunity Zone properties are classified as multifamily homes.
In Manhattan, QOZs mostly lie in the Lower East Side, Hell’s Kitchen, East and Central Harlem, and along the Harlem River up through Inwood.
Brooklyn Opportunity Zones
Brooklyn, which sits in Kings County, NY, includes more than 250,000 commercial properties, 190,000 of which are multifamily properties, and of which 21,000 are residential mixed-use properties.
There are 41,000 commercial properties that lie within QOZs in Brooklyn, nearly 28,000 of which are multifamily and 3,400 residential mixed-use.
Crown Heights is a terrific example of how Opportunity Zones can affect already-flourishing areas and essentially expedite the revitalization process. The area is already set to have almost 800 new units in 2019, yet still holds more than 2,500 properties within QOZs.
Queens Opportunity Zones
Queens County includes just over 232,000 commercial properties. 27,000 of those properties are within Qualified Opportunity Zones.
The notable inclusion here, of course, is the incoming Amazon HQ2, which is set to be built around the Anable Basin, where property was largely owned by Plaxall, a plastics company that has been headquartered in LIC for more than 70 years.
In fact, to the chagrin of many, Amazon’s HQ2 itself is within a Qualified Opp Zone.
The rezoning of Far Rockaway could also pair well with Opportunity Zones, as they draw their focus more towards their commercial market with 92,000 square feet of commercial space in the works.
As mentioned earlier, areas that are already developing are high-demand areas for Opportunity Zone investment.
Bronx Opportunity Zones
Bronx County has about 81,000 commercial properties, 63,000 of which are classified as multifamily.
16,000 of those properties are in Opportunity Zones—more than 10,000 of those properties are multifamily-classified, and a little over 3,000 of those multifamily properties have at least 30 units.
Despite less space, the Bronx’s Opp Zone market proves a bit denser than the other boroughs.
Staten Island Opportunity Zones
Staten Island has 50,000 commercial properties in total. 3,300 are located in QOZs, entirely on the northern portion of the borough where it borders New Jersey.
Nearly 2,000 of the QOZ properties in Staten Island are multifamily, comprised mostly of duplexes.
New York State Opportunity Zones
When we say “New York State,” we mean everything outside of NYC’s five boroughs and Long Island. From White Plains, up to Lake Champlain, and out to Buffalo.
Despite the much larger land mass, just over half of the commercial properties in all of New York exist in this area (roughly 1.1 million).
There are 198 Opportunity Zones in New York outside of NYC and Long Island, consisting of about 130,000 commercial properties. Those properties are largely spread throughout towns and cities in the state, much less-so among mountainous land.
Long Island Opportunity Zones
Long Island is broken into Nassau and Suffolk Counties. In total, Long Island has over 200,000 commercial properties, nearly half of which is vacant land.
Despite having only 10 qualified zones, out of Nassau County’s 72,000 commercial properties, 1,900 are located in Opp Zones, and are mainly located in three distinct hubs of the county—Glen Cove, Hempstead, and Long Beach.
In Suffolk County, 5,300 commercial properties are located in Opp Zones.
Investing in Opportunity Zones in New York
While it’s great to know how many commercial properties there are, it’s most important to know how to sift through those properties to find individual investment opportunities to pursue.
First up is Reonomy OffMarket, which lets you search for commercial properties in any Opp Zone in the contiguous United States.
Search Opportunity Zone Properties with Reonomy
With Reonomy OffMarket, not only can you search for any commercial asset nationwide, but you can search any market nationwide specifically for commercial properties located in QOZs.
An Opportunity Zone property search can be run using a multitude of filters on Reonomy, from location to asset type, to sales history, debt history, and ownership.
Begin by adding the location and property type you’re looking for. You can find the necessary filters in the Location and Asset Type tabs of the Reonomy platform.
From there, you can build lead lists of Opp Zone properties, get owner contact information, and reach out directly if you so choose.
New York Opportunity Zone Mapping Tool
While Reonomy is primed for investment in these areas, there are plenty of options when it comes to choosing an Opportunity zone mapping tool.
NY.gov Opportunity Zone Maps
On the New York State government website, while not an interactive map, there is a list of PDFs providing a map view of where Opportunity Zones lie in different sections of the state and City.
They have New York broken down into 14 sections in total.
For usability purposes and ease, the national Opp Zone mapping tools mentioned below are likely a little more friendly.
EIG Opportunity Zone Map
The Economic Innovation Group provides one of the more popular Opp Zone maps on the web.
Also one of the first to offer a mapping tool to the public, EIG has long been at the forefront of Opportunity Zone thought-leadership—EIG’s founder, Sean Parker has been one of the primary drivers of the tax reform from the beginning.
You can use this site to scour New York City and New York State QOZs, see outlines of each zone, as well as census tract numbers, population totals, poverty levels, and more.
PolicyMap Qualified Opportunity Zones Map
PolicyMap also provides a national Opp Zone mapping tool that allows you to roam the country, including New York City and State.
When using this tool, Designated Opportunity Zones are highlighted in a dark blueish-purple color, while the rest of the map is shaded in yellow (non-designated areas) and grey (areas with insufficient data).
Novogradac Opportunity Zones Mapping Tool
The San Francisco-based accounting firm, Novogradac, provides an entire Opportunity Zones Resource Center on their site, full of news, research and reports, and a national OZ mapping tool.
Opportunity Zone Explorer by Opportunity360
Opportunity360’s Opportunity Zone Explorer is perhaps the most interactive tool available for simply searching Opportunity Zones on a national scale.
On top of having a map where you can roam freely and view qualified zones, they have a number of different filters that you can add to hone in on specific areas.
Add these filters to search for New York QOZs with certain specifications.
New York Opportunity Zone Funds
It’s also important to keep in mind the fact that, in order to reinvest your capital gains in Opportunity Zones, you must do so through a qualified Opportunity Zone Fund.
While you can self-certify to become a Qualified Opportunity Zone Fund, there are also many already in place to make an investment with. The Northeast region, notably NYC, as well as multifamily properties, are a major focus among the established Opportunity Zone Funds across the country.
First, let’s look at a few nationwide Opportunity Zone Funds.
Fundrise is one of the most prominent Opportunity Zone Funds in the country, with coverage of all 50 states.
This online investment platform offers investment in a variety of asset classes, across multifamily, mixed-use, and most other commercial property types.
EquityMultiple is another large-scale nationwide Opportunity Zone Fund.
Much like Fundrise, they provide investment opportunities in a variety of commercial property types including multifamily, mixed-use, and hospitality real estate.
While not fully nationwide, Community Outcome covers a large portion of the United States, including New York.
This fund targets a variety of commercial and residential property types, from multifamily to mixed-use, to student housing, and much more.
Below, we’ll briefly look at two New York-centric Opportunity Funds.
Based in the South Bronx, Somerset Partners feels that there, “is no better company to take advantage,” of Opportunity Zone investment.
On their site, they provide statistics proving the value of investing in a Qualified New York Opp Zone, then lead visitors to request a bit more information about their City-based Fund.
Shorewood Partners is another New York-based real estate group that is currently, “in the process of raising an Opportunity Zone Fund,” for NYC investment.
Shorewood specializes in multifamily development, with a focus on affordable housing across the Bronx and the rest of NYC.
No matter where you may find yourself looking for an Opportunity Zone property—whether in New York City, State or anywhere around the country—Reonomy OffMarket could be the simple difference in landing a lifelong winner.