Cantor Fitzgerald, L.P., a global financial services firm and real estate investment company, and Silverstein Properties, a full-service real estate development, investment and management company, have entered into a joint venture focused on acquiring and developing real estate projects located in opportunity zones, as defined in the 2017 Tax Cuts and Jobs Act.
The recently introduced federal opportunity zone program offers tax deferral and relief for certain investments made in designated, qualified areas, primarily low-income communities. More than $6 trillion of potential capital gains are eligible for reinvestment in opportunity zones, according to the bi-partisan Economic Innovation Group, and the Treasury Department predicts that the program will result in more than $100 billion in capital investment.
The joint venture targets investments in opportunity zones with third-party developers, as well as large-scale projects where Silverstein Properties is the developer. Such investments may include retail, office, industrial, hospitality and multifamily developments located in major metropolitan markets.
“We have a unique, long-standing connection with Silverstein Properties and a shared commitment to investing in communities and improving lives,” said Howard Lutnick, chairman and CEO of Cantor Fitzgerald L.P. “Silverstein Properties is one of the country’s leading developers, and this joint venture enables us to quickly grow our opportunity zone investments to the benefit of the local communities.”
Cantor Fitzgerald and Silverstein Properties have experience across all aspects of commercial real estate including acquisition, development, asset management, underwriting and leasing as well as financial and market analysis.
Cantor Fitzgerald was founded by Bernie Cantor in 1945 and has been led by Lutnick since 1996, while Larry Silverstein began his real estate career in 1957. They have worked closely together over the years as they’ve grown their businesses.
“Notably, the two firms share a historical connection to the tragic events at the World Trade Center and the two leaders played central roles in the recovery that followed. This joint venture is a natural extension of the companies’ shared history, as it underscores both firms’ long-standing commitment to rebuilding,” the companies said in a prepared statement.
Cantor Fitzgerald, L.P. is a global financial services group with more than 12,000 employees. Cantor Fitzgerald & Co. is an investment bank serving more than 7,000 institutional clients around the world and one of the 23 primary dealers authorized to transact business with the Federal Reserve Bank of New York.
Silverstein Properties is a privately held, full-service real estate development, investment and management firm based in New York. The firm has developed, owned and managed more than 40 million square feet of commercial, residential, retail and hotel space, with recent projects that include 7 World Trade Center (2006), 4 World Trade Center (2013), the Four Seasons Downtown (2016), One West End (2017) and 3 World Trade Center (2018).