Investing In Riverside’s Opportunity Zones
Located in the heart of the Inland Empire, Riverside is a vibrant college town that offers a wide array of lively restaurants, eclectic music venues, local craft breweries, indie shops, and quaint coffee houses, and more. Riverside boasts an astounding 24 nationally registered historic sites and more than 100 city landmarks that encapsulate the city’s rich and remarkable history.
Sitting a mere sixty miles east of Los Angeles, Riverside is a city known for its citrus industry, and has grown to be renowned as the city of arts and innovation. Visitors and residents alike enjoy all the amenities that make a college town noteworthy. From downtown museums and performing arts centers to the world-famous Mission Inn Hotel and Spa, the city is the perfect blend of small-town friendliness and big-city fun.
Riverside is flourishing and growing at a steady and exciting pace. As of the 2020 census, Riverside had a population of 314,998. As a college town and affordable Southern California market with a wide variety of social and business advantages, Riverside will only continue to grow. At Stance, we are here to help it grow. To us, Riverside is more than just a place… it’s home!
Let’s take a look at Opportunity Zones. These investment properties are unique and innovating. From local influence to tax incentives, these properties offer the opportunity to enrich the community and enhance the portfolio of the savviest of investors.
What is an Opportunity Zone?
Opportunity Zones are an economic development tool that allows people to invest in designated areas. Under certain conditions, new investments within these zones may be eligible for preferential tax treatment. The State Governor nominates a limited number of eligible tracts for official designation. The certification and designation of an Opportunity Zone comes from the Secretary of the U.S Treasury via his delegation of authority to the Internal Revenue Service (IRS).
Opportunity Zones provide a new tool for investors, fund managers and communities by utilizing privately sourced funds into eligible economic development and community reinvestment projects.
Opportunity Zones In the City of Riverside
The City of Riverside has four, state-designated opportunity zones which are ready for investments and new commercial and residential investments which can be streamlined and has community support.
One such Opportunity Zone is the Life Art Center. This event venue is designated Historical landmark #41. Located in downtown Riverside California, the Life Art Center is known for hosting enchanting wedding celebrations and other milestone events. Initially constructed in 1909 by renowned architect Arthur Benton, the building has been host to numerous elegant weddings since 1993. The venue exudes old-world charm and has become an instrumental feature in Riverside’s charming landscape. In 2021, the Stance team was enlisted to guide the prospective buyers through the process. With a successful acquisition, the new owners are enjoying Riverside’s quaint downtown culture and thriving market.
Specific Riverside, California Opportunity Zones
Zone 1 – Innovation District / Hunter Park
- Main Assets: UC Riverside, Bourns, Solarmax, CARB, Downtown Riverside, Mission Inn, Konica Minolta,
- # of Residents: 44,522
Zone 2 – Casa Blanca Auto Mall
- Main Assets: Riverside Auto Center – Audi, BMW, Mercedes, Lexux, Porsche, Harley Davidson, Carmax
- # of Residents : 2,929
Zone 3 – Arlanza
- Main Assets: Riverside Municipal Airport, UTC Aerospace Systems, Arlanza Public Library, 91 Freeway Frontage,
- # of Residents : 5,669
Zone 4 – Canyon Springs
- Main Assets: Power Retail Center – Target, Walmart, Sams Club, Best Buy, 60/215 Freeway Frontage,
- # of Residents: 3,965
Why Invest and Develop in Riverside’s Opportunity Zones?
1. Location, Location, Location
The city encompasses an expanding transit and alternative transportation network, research institutions associated with the University of California – Riverside, and the ever-expanding entertainment destinations in the downtown region. The City is also currently home to several under-utilized former industrial buildings which have the potential to serve as ideal co-working spaces for startup firms and other creative developments. The close proximity to the university will also lend itself to a steady and reliable workforce.
2. Innovation District
Riverside has created an innovation district that is ideal for attracting new investment, retain local talent, encourage entrepreneurship and create jobs. To date, companies such as Konica Minolta, a global technology firm, have relocated to the Innovation District in order to be part of Riverside’s innovation ecosystem and to be close to Riverside’s collegiate talent pool. The Innovation District also boasts several "creative" office locations including ExCITE, Spark Tank, and Mind and Mill.
3. Strategic Partnerships
Riverside is a community that puts collaboration with local businesses at the top of the priority list. The city is proud to regularly team up with a vast network of partners who work to enrich the community and make Riverside a vibrant destination to invest and develop:
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- Greater Riverside Chambers of Commerce
- Riverside Downtown Partnership
- Inland Empire Small Business Development Center
- UCR College of Engineering-Center for Environmental Research & Technology
4. Community Benefits
Opportunity Zones can be used as part of an economic development strategy to create jobs, invest in startups, stimulate housing projects, or augment other tax incentive programs.
Tax Advantages of Investing In Opportunity Zones
There are primarily three tax benefits made with the creation of OZs.
- Capital Gains Tax Deferral: An investor that re-invests capital gains into a Qualified Opportunity Fund can defer the payment of federal taxes on the realized gains of the investment as late as December 31, 2026
- Capital Gains Tax Reduction: An investor that meets timing deadlines and holds their investment in a Qualified Opportunity Fund for at least five years can reduce their tax bill on the capital gains differed by 10%. If the investor holds their investment for at least seven years, the reduction increases to 15%.
- Elimination of Taxes on Future Gains: An investor that holds their investment in a Qualified Opportunity Fund for at least ten years will not be required to pay federal capital gains taxes on any realized gains from the investment.
How Stance Commercial Real Estate Can Help You
Navigating the commercial real estate market can be an intimidating task, especially in a fast-moving market such as Southern California. Any commercial real estate situation can change in the blink of an eye, leaving you to face challenges that you never anticipated. And to make a sale that meets your pricing and timeline goals, there are even more factors to keep in mind.
Stance CRE can be a great resource regardless of which type of investor you are. We have been adding value to investment decisions right here in Riverside for years. We are not just market experts, we are your neighbors! We are a local business with local interests.
In the right market, both active and passive options have the potential to generate steady cash-flow and return on investment. At Stance Commercial Real Estate, we live and breathe Riverside culture. We are not only working in the community, we live here… we love it and we want to help you succeed in it!
Call us today at (909) 772-1212 and let us help you decide which type of role is best for you!
