Seattle opportunity zone development backed by Pinnacle Partners

In mid-October, Seattle’s first Opportunity Zone development broke ground with backing from Pinnacle Partners and local developer Nitze-Stagen. As part of the Tax Reform Act of 2017, the Opportunity Zones Program helps drive capital to designated communities across the nation by offering substantial capital-gains tax breaks for investors who invest in any of the 8,000 designated low-income census tracts. Investors can defer paying capital gains taxes on the money they invest in an Opportunity Zone project, and if they keep their money in the zone long enough, they won't be taxed on returns from the project itself. The $30 million apartment building on Seattle's first Opportunity Zone development in the historic Pioneer Square is called Canton Lofts. Canton Lofts will feature 80-units with transit accessibility and provide affordable one-bedroom studios. "Pinnacle Partners is an early first mover in Opportunity Zones and has been able to close multiple investments and build a strong pipeline of future opportunities before many funds even launched," said Leo Backer, managing partner at Pinnacle. The firm has also funded a similar project in Los Angeles near the Staples Center and Pinnacle is sourcing developments on the West Coast centered on senior living, workforce housing and industrial projects, according to Jeff Feinstein, who is also a managing partner at Pinnacle. The firm’s advisory board includes Peter Joers of Seattle-based fund of hedge funds Silver Creek Capital.

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