As Pennsylvania's OZ 2.0 map is finalized, Bisnow's August 25 look at Philadelphia's first-round multifamily deals is mixed. Alterra's 426-unit LVL North was 95 percent leased in April but short of original rent and occupancy projections, with a $140 million refinancing pursued to reach the 10-year hold. MM Partners' Civic (Fairmount) and Poth Brewery (Brewerytown) adaptive-reuse projects both entered CMBS special servicing. Linden Lane's Hannah is 97 percent leased; Via, delivered in March, was 60 percent leased and offering two months free on a 14-month lease. Managing principal Michael Wachs called the original underwriting 'a little bit of overexuberance.' Arctaris's Andrew Gibbs said many of those deals now pencil as naturally affordable at 60–80 percent AMI. The census tract holding Linden Lane's projects has grown too wealthy to be eligible for OZ 2.0.
Original reporting by Daniel Cho for Opportunity Zone Invest, an independent OZ 2.0 research site. Facts are drawn from the primary sources cited above per our editorial standards. Nothing here is tax, legal, or investment advice.
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