Apparently, with some 'insider information' ahead of the announcement of the new Opportunity Zones Program in the Tax Credit & Jobs Act in December 2017, offers were made to owners of commercial properties on Main Street located in census tracts that were designated as distressed, low-income and neglected in April 2018. He had to close on acquiring the properties before the end of December 2017.
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BoingBoing.net had this to say about the 2017 Tax Act
"Trump's 2017 #taxscam transferred more than a trillion dollars to the richest people in America, but when Trump talks about it, he likes to tout the bill's "opportunity zone" provisions that provided massive tax breaks to investors who put money into places that would supposedly create jobs and housing for poor Americans. . ."
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27 November 2017Mesa Morning Live December 2017 Line-Up
Mesa Morning Live December 2017
Sponsored by Wells Fargo Date: December 8, 2017
Sponsored by Wells Fargo Date: December 8, 2017
Time: 6:45 AM - 8:30 AM MST
Please join the Mesa Chamber of Commerce with a great lineup for the December show
Fees/Admission:
Pre-Registration Fee: $20
At The Door Fee: $30
At The Door Fee: $30
HOLD ON! Bob Worley + Wells Fargo??????
Featured Guest: Arizona Senators Sean Bowie and Bob Worsley
Location:
Crescent Crown Distributing
1640 W. Broadway Rd.
Mesa, AZ 85202
1640 W. Broadway Rd.
Mesa, AZ 85202
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WORDS OF CAUTION
CRE's Biggest Flops Of The Decade
Opportunity zone investment: Opportunity zones first sparked the public’s interest as a bipartisan program championed by now-presidential candidate Sen. Cory Booker (D-NJ) designed to breathe new life and investment into distressed communities nationwide. The program was launched in 2017 as part of the Tax Cuts and Jobs Act and contains three tax breaks for investors looking to defray their capital gains. It was heavily promoted by the Trump administration as a way to revitalize struggling urban areas.
At that public appearance in front of the Mesa City Council in February 2018 with ASU Government Affairs lobbyist Matt Salmon, Worsley claimed he invested $20,000,000 - his own money or not - to purchase the 8 buildings in the "Historic Mesa Portfolio."
From this source https://www.caliberco.com/mesa-portfolio/ - the purchase price was $7,624,000 with additional information about the asset:
The Downtown Mesa property portfolio is made up of 8 historic buildings located on Main Street in Mesa, Arizona. The buildings consist of 100,000 plus square feet and occupy 20% of the main frontage on the popular Main Street. In conjunction with city government and like-minded investors, Caliber plans to revitalize the buildings to bring new life into a once thriving downtown.Caliber's downtown Mesa portfolio includes nearly 20% of buildings on Main Street and encompasses more than 160,000 square feet.WORDS OF CAUTION
CRE's Biggest Flops Of The Decade
View countDecember 16, 2019
Opportunity zone investment: Opportunity zones first sparked the public’s interest as a bipartisan program championed by now-presidential candidate Sen. Cory Booker (D-NJ) designed to breathe new life and investment into distressed communities nationwide. The program was launched in 2017 as part of the Tax Cuts and Jobs Act and contains three tax breaks for investors looking to defray their capital gains. It was heavily promoted by the Trump administration as a way to revitalize struggling urban areas.
It seemed simple enough: After the first set of guidelines appeared, 8,700 census tracts across the U.S. were designated by governors — and D.C. Mayor Murial Bowser — as OZs. The localities then sat back and waited for the investment to roll in.
It hasn’t been that easy. From withering criticism about some of the “distressed” zones designated (like this superyacht marina in West Palm Beach) to an overall criticism of giving tax breaks to developers who don't need it, to a wave of irritation about how slowly the Internal Revenue Service has rolled out guidance, opportunity zones have floundered in states like California and gained only tepid support in others.
Perhaps most disappointing for the program's writers, the investment community has largely dismissed the financial benefits as a nice bonus for deals that would work without it — not something that will drive investment to distressed areas that wouldn't have any otherwise. What it has mostly achieved is speeding up gentrification and bringing in consulting fees for lawyers and accountants.
Now, the program is back on the hook as a regular lightning rod for the 2020 presidential race’s candidates, and is looking at a major overhaul by some of its original sponsors.
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From this source https://www.caliberco.com/mesa-portfolio/ - the purchase price was $7,624,000 with additional information about the asset:
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Because the areas earmarked for improvement are distressed, recovery may not go as quickly as planned -- and a fund won't gain in value if the targeted community and its businesses aren't gaining in value. So, like any investment, there's no guarantee you'll make money
--- Nasdaq.com 28 Nov 2019
Opportunity Zone Funds became part of the tax code with the Tax Cuts and Jobs Act of 2017. The funds are created by partnerships or corporations that invest in eligible properties within designated Opportunity Zones.
The IRS defines an Opportunity Zone, or O-Zone, as an "economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment." In other words, the communities on the receiving end of these funds hope to benefit from "revitalization", while investors can reap tax benefits by putting their money toward those improvements.
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Posted earlier on this blog
Note that the information here was updated ten days ago . . .
Here in Downtown Mesa: 305 East Main
WELLS FARGO BUILDING
50,018 SF Office Building Offered at $4,000,000
Listing ID: 15779686
Listing ID: 15779686
Date Created: 4/18/2019
Last Updated:
Source: https://www.loopnet.com/Listing
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Disclaimer: The LoopNet service and information provided therein, while believed to be accurate, are provided "as is". LoopNet disclaims any and all representations, warranties, or guarantees of any kind.
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Description
Former Wells Fargo Bank Branch and administrative offices located on Main Street in Mesa, Arizona.
•The Property was constructed in 1985 using a durable steel frame. The floors are supported by structural steel beams and columns.
•Parking is provided by exclusive leased access to 157 spaces in an adjacent parking structure. Renewal options
extend parking rights until approximately 2081.
On-site parking is also available with approximately 24 open surface spaces.
•Prime ±.95-acre land parcel with prominent frontage at the intersection of Main Street and Mesa Drive in historical downtown Mesa.
•DC (Downtown Core) zoning within the City of Mesa.
•Located in the historical downtown core of Mesa, Arizona which was established in 1878.
The Property is prominently situated at the southwest corner of Main Street and Mesa Drive, major arterials serving the downtown area.
•Thriving location with walkable restaurants, shops, theaters and hotels in the immediate vicinity—Downtown Mesa is a $2 billion dollar square-mile business district.
•A multitude of desirable historic neighborhoods surround the Property including
- Evergreen
- Fraser Fields
- Glenwood
- Robson
- West 2nd Street and many of the homes are on the National Register of Historical Properties.
•The Valley Metro Light Rail system (including a station) completed in 2015 is located at the intersection of Main Street and Mesa Drive.
ABOUT 305 E Main St , Mesa, AZ 85201
| Price | $4,000,000 | Rentable Building Area | 50,018 SF |
| Sale Type | Investment | No. Stories | 4 |
| Property Type | Office | Year Built | 1985 |
| Building Class | B | Zoning Description | |
| Lot Size | 0.95 AC | APN / Parcel ID | 138-65-006B |
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> Wells Fargo sells Mesa location
> BIG DEAL:
Caliber-The Wealth Development Company has closed on a 50,000 square-foot building in Mesa, Arizona. Located at 305 E. Main St., this is the latest property in the company’s downtown Mesa portfolio that includes nearly 20 percent of buildings on Main Street and encompasses more than 160,000 square feet. Located in a designated opportunity zone, the properties are part of the Caliber Tax Advantaged Opportunity Zone Fund, LP.
“Our focus has been on finding the right tenants that will elevate Main Street as we strive to create great spaces to live, work and play and bring back a vibrance to historic downtown Mesa.”
The properties are being renovated into modern but historically charming restaurant, retail and office space that will create an inviting urban environment.
The ASU campus is slated to open in fall of 2021.
BLOGGER NOTE: The "campus" is one new building in this schematic image presented for public consumption.
The attempt to turn downtown Mesa into "a satellite campus" for the party-school ASU that devoured downtown Tempe was funded by a privately-financed public relations campaign that turned out to be a major screw-up when taxpayers found out the plans for City Hall Plaza.
The only new development that has broken ground and is now under construction is the City Creek Reserve project at the SEC of Main Street/Mesa Drive where NO FINANCIAL DETAILS WERE EVER DISCLOSED TO THE PUBLIC by for-profit affiliates of the Mormon Church that adds more than 125,000sq fit of new retail space.
_________________________________________________________________________The 305 E. Main St. building was originally constructed for a bank, and Wells Fargo will continue to operate on the ground floor. Common area renovations are already underway, and Caliber’s planned $3 million of improvements are being offered as part of the releasing program for the prime office space.
The only new development that has broken ground and is now under construction is the City Creek Reserve project at the SEC of Main Street/Mesa Drive where NO FINANCIAL DETAILS WERE EVER DISCLOSED TO THE PUBLIC by for-profit affiliates of the Mormon Church that adds more than 125,000sq fit of new retail space.
_________________________________________________________________________The 305 E. Main St. building was originally constructed for a bank, and Wells Fargo will continue to operate on the ground floor. Common area renovations are already underway, and Caliber’s planned $3 million of improvements are being offered as part of the releasing program for the prime office space.
The fund is open to short- and long-term capital gain investments, will provide significant tax savings to investors and is expected to reach its $500 million goal within two years.
For more details on Caliber’s QOF or other investment opportunities, visit CaliberCo.com.
