In a significant real estate transaction, Genting Group, a prominent Malaysian gaming conglomerate, has sold a parcel of vacant land in Downtown Miami to SF QOZ Fund I LLC for $21 million.
The fund, managed by attorneys David Cohen and Liam Krahe, is now eyed for luxury multifamily housing development with a focus on workforce units, leveraging the benefits offered by the Live Local Act.
Cohen expressed enthusiasm about the acquisition, remarking, “We’ve been scoping this area out for quite some time. We were fortunate to be able to execute on this off-market opportunity to bring this to our investors, giving them the chance to invest, whether they’re eligible for the opportunity zone benefits or not.”
The purchase covers six parcels totaling nearly an acre, located at 1525 and 1515 NE Miami Place, 75 NE 15th St., and 1516, 1512, and 1502 NE First Ave. This deal stands out as the first ground-up development for the newly launched fund, with Chicago-based McCaffery Interests partnering for the development alongside Grandview Development Co.
Opportunity zones were introduced by the 2017 Tax Cuts and Jobs Act, allowing investors to gain tax incentives for investments in long-term real estate or business developments within designated underserved communities.
While SF QOZ Fund I, launched last year, remains tight-lipped about its total size, the fund has attracted a diverse investor group, including both opportunity zone and non-opportunity zone investors such as NFL players, an NBA coach, and other high-net-worth individuals.
The acquisition was funded through an acquisition loan from Rock Lending, a Miami-based lender, along with substantial capital contributions from the fund. Plans are underway for further financing with institutional equity and debt as the construction phase approaches, anticipated to begin in April 2026.
Cohen stated that their immediate goal is to secure approvals from the Urban Development Review Board during the summer, noting that the project is poised to potentially benefit from parking reductions and expedited entitlements.
“The goal is to get this off the ground as soon as possible,” said Krahe.
The acquisition comes amid a downturn in opportunity zone fundraising as the current program is set to end in 2026, which raises concerns about a potential investment gap.
Scott Turner, the Secretary of the Department of Housing and Urban Development, has been advocating for the extension of the opportunity zone program. Recently, the House passed a budget package nicknamed the “One Big Beautiful Bill,” which suggests ending current zones by 2026 but creates new ones starting January 1, 2027.
This proposal generates worry about a possible void for investments throughout 2025 and all of 2026.
Krahe indicated some concerns regarding the hasty legislative process involved. “It feels very much like that was rushed from a legislation standpoint,” he said.
Despite the uncertainties, both Cohen and Krahe remain optimistic about potential revisions in the Senate for a more comprehensive proposal regarding opportunity zones.
“The fact that the House included it and it was passed through is a huge win for anybody involved with opportunity zone projects,” noted Krahe.
While the future of opportunity zones hangs in the balance, the wider commercial real estate landscape continues to face challenges due to macroeconomic uncertainties, including volatile tariff policies.
These shifts vary from Trump’s often-changing tariff announcements, and just recently, tariffs of 50% were implemented on steel and aluminum, raising investor concerns about construction slowdowns.
However, Krahe and Cohen are undeterred by these challenges, asserting their belief that any price fluctuations will stabilize by the time their development begins in 2026.
“There’s a new thing every year,” Krahe commented, reflecting on the changing market dynamics. “Last year was natural disasters, hurricanes, and increasing insurance costs; now it’s tariffs. It all kind of works its way through the system, and eventually prices stabilize, and you find a way to capitalize on the project.”
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