Starwood Capital Group, a global private investment firm focused on real estate and energy investments, plans to develop a 147,000 square-foot mixed-use facility in a designated opportunity zone in the Bronx, New York.
The 10-story development, located at 425 Westchester Avenue, will be anchored by a PK-8 charter school and include office space for a non-profit organization as well as ground floor retail. Construction is expected to begin this month. The Class A property will have floor-to-ceiling windows, open plan offices and more than 11,000 square feet of outdoor space.
Starwood noted that the building will help meet the historically high charter school demand in the Bronx.
“The Bronx is New York City’s fastest growing borough and we see continued opportunity to help bring new investment in the services, schools, office space and retail that have long contributed to the Bronx being such a vibrant community,” said Anthony Balestrieri, senior vice president and leader of Starwood’s opportunity zone investment strategy.
Opportunity zones were created by the 2017 Tax Cuts and Jobs Act to offer investors certain tax advantages for developing and operating assets in designated opportunity zones. Starwood plans to focus its opportunity zone strategy in regions where it has developed a real estate presence, including the West Coast, Southeast and large metropolitan markets such as New York City and Washington, D.C.
Starwood Capital Group and its affiliates maintain 13 offices in five countries around the world, and currently have approximately 4,000 employees. Since its inception in 1991, Starwood has raised $45 billion of equity capital, and currently has in excess of $60 billion of assets under management.