Disclosure: Rose Law Group represents Defer Gain
By Mike Sunnucks | Rose Law Group Reporter
Los Angeles-based investment firm Pacific Oak Capital Advisors and Scottsdale-based real estate development firm Defer Gain LLC have forged a new joint venture to develop, finance and operate new properties in Arizona Opportunity Zones.
Opportunity Zones were part of the tax cuts approved by President Donald Trump and Congress and offer tax benefits for real estate developers investing in designated downtown and other areas.
Pacific Oak and Defer Gain are launching their venture with three apartment projects in downtown Phoenix.
The St. Ambrose Apartments and Presidential Apartments near 12th and Van Buren streets are slated to have 241 and 84 units, respectively. The multifamily buildings are also on Metro light rail.
Defer Gain and Pacific Oak will also team to build a new. 140-unit workforce housing apartment building called the Imperial Apartments at 20th and Roosevelt streets in Phoenix. That development is slated to start construction in September.
“The Imperial Apartments is located directly across from the soon to be expanded Edison Park, which is a significant amenity in the neighborhood,” said Michael Lafferty, a partner at Defer Gain. “We are excited to bring affordable, high quality, housing solutions to this fantastic neighborhood and be a part of its transformation with the City of Phoenix and Edison Eastlake stakeholders.”
Lafferty founded Defer Gain with Scott Tonn.
Designated Opportunity Zones in Arizona include areas of downtown Phoenix, downtown Mesa, Grand Avenue, the Salt River Pima Maricopa Indian Community, the Gila River Indian Community as well as downtown Scottsdale and north Tempe.
Phoenix Mayor Kate Gallego welcomed the new housing developments planned by Pacific Oak and Defer Gain.
“Adding quality housing is a top priority for our city. I am excited to see new housing, including much-needed workforce units, near our key job corridors in the downtown and airport area,” Gallego said.
Arizona Commerce Authority President and CEO Sandra Watson likes to see new Opportunity Zone developments. “It’s exciting to see Opportunity Zone developments providing support to a critical component of our state’s economy — the workforce,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “We thank Pacific Oak and Defer Gain for advancing these three projects in downtown Phoenix neighborhoods.”