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Investors Reexamine ‘Opportunity Zones’ in Light of Pandemic, Protests

Fundraising Slows After Reaching Peak

Funded in part with "opportunity zone" funds, developers of The Finery in Nashville, Tennessee, no longer plan to include a hotel as part of the project after reviewing the impact of the coronavirus pandemic. (Cresset Partners)
Funded in part with "opportunity zone" funds, developers of The Finery in Nashville, Tennessee, no longer plan to include a hotel as part of the project after reviewing the impact of the coronavirus pandemic. (Cresset Partners)

Economic volatility brought by the coronavirus pandemic slowed the momentum of fundraising for "opportunity zone" projects, which had been on a roll with a record haul of $1.6 billion in the first six weeks of the year. Since then, funds that file with the Securities and Exchange Commission have reported bringing in just $114 million, according to data collected by CoStar.

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