Friedman: Non-taxable allocators will invest in Opportunity Zones for higher returns
Manny Friedman · Manny Friedman – EJF on Economic Opportunity Zones (EP.91) · Mar 18, 2019 · at 17:10
Manny Friedman, co-founder of EJF Capital, explains why institutional investors exempt from capital gains taxes will still allocate capital into federal Opportunity Zones.
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“There's no specific economic incentive. It's just they're going to get a higher return on their money. Do you want to be downtown New York, which where jobs are going to be moving out from, or do you want to be in Brooklyn or the tip of New York? Do you want to be in Bethesda, or do you want to be in Silver Spring? So once you create the enormous momentum, the non-taxable investor looking for Making good investments is simply going to follow the people who are creating these jobs, who are creating the momentum here, so it's like water. It seeks the lowest ground. Returns simply seek the highest return based on the risk, and that's what's going to happen here.”
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