Parsonex Properties LLC has closed on its first qualified opportunity zone project in Grand Junction, Colorado. The company concentrates on investing in “shovel ready” real estate projects in the Rocky Mountain and Southeast regions.
Referred to as Sundance Homes, the project consists of 22 Energy Star certified townhomes with three-bedroom units and attached garages. Sundance Homes is being co-developed in conjunction with Senergy Builders of Grand Junction and will be available for rent in the Summer of 2020.
“The [Grand Junction] market continues to diversify its employment base and attract employers,” said Fred Adams, chief investment officer of Parsonex. “Colorado Mesa University is thriving and expanding, and it’s still an affordable place to live compared to the Denver metro area.”
Qualified opportunity zones were created by the 2017 Tax and Jobs Act and allow for the creation of preferential tax treatment by way of investment in economically distressed areas to promote growth and revitalization. There are more than 8,700 qualified opportunity zones in the United States, with Colorado having more than 130 zones.
“We intend to develop eight to 12 properties, all in opportunity zones over the next three years,” said Shane Phillips, president of Parsonex. “These developments will include multifamily residential, light industrial, mixed use, and special use properties. By developing multiple properties in Grand Junction and other Mountain West markets, we can diversify and spread risk both geographically and by asset type.”
Parsonex Capital Partners, an affiliate of Parsonex Properties, is a private fund sponsor and asset management firm with a focus on real estate and business development in qualified opportunity zones.