The Benefits of Investing in an Opportunity Zone – Everett, Washington
Investing in Opportunity Zones (OZs) offers a compelling path for investors seeking both tax advantages and the ability to contribute to the economic revitalization of underserved communities. In Everett, Washington, designated OZs provide unique opportunities for strategic real estate and business investments.
What Are Opportunity Zones?
Opportunity Zones are low-income census tracts nominated by state governors and certified by the U.S. Department of the Treasury. Created under the 2017 Tax Cuts and Jobs Act, the program encourages long-term private investments in economically distressed areas by offering federal tax incentives.
Where are they in Everett? Glad you asked...see link below!
Everett's Opportunity Zones: A Strategic Location
Several areas in Everett have been designated as Opportunity Zones, including parts of Downtown Everett and neighborhoods near Paine Field. These locations are well-suited for:
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Urban revitalization projects
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Workforce and affordable housing
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Mixed-use and commercial real estate
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Startup and small business growth
Everett’s focus on infrastructure investment, economic development, and population growth makes it a strong candidate for OZ investment.
Top Tax Benefits for Investors
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Capital Gains Deferral
Reinvest capital gains into a Qualified Opportunity Fund (QOF) and defer federal taxes until the earlier of:-
The date you sell the QOF investment
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December 31, 2026
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Basis Step-Up for Long-Term Holding
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Hold for 5 years: receive a 10% exclusion of the deferred gain
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Hold for 7 years: receive an additional 5% exclusion (15% total)
(Note: Due to the timing, the 7-year benefit expired after 2019, but the 5-year benefit may still apply.)
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Tax-Free Gains on QOF Investment
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If the QOF is held for 10+ years, investors can exclude any additional gains from the QOF from taxation altogether.
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What Types of Projects Work Well in Everett?
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Multi-Family Housing: Take advantage of rising demand and local rezoning efforts.
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Retail & Industrial Redevelopment: Revitalize underused commercial corridors.
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Office to Residential Conversions: Tap into zoning changes and adaptive reuse incentives.
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Local Business Expansion: Partner with or invest in businesses that create local jobs and qualify under OZ guidelines.
Tips for Investing in Everett’s Opportunity Zones
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Work with a Local Broker: A commercial real estate professional with Everett experience can help identify viable properties and off-market deals.
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Join or Create a Qualified Opportunity Fund (QOF): This is the legal entity through which OZ investments must be made to access tax benefits.
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Consult a Tax Professional: OZ investments have specific rules—proper legal and tax advice is critical.
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Review City Incentives: Everett and Snohomish County may offer additional local grants, permitting fast-tracks, or tax abatements.
Final Thoughts
Everett’s Opportunity Zones represent a chance to grow your wealth tax-efficiently while making a positive impact on the community. Whether you're looking to build, redevelop, or invest in a business, the combination of strong fundamentals and OZ tax incentives makes Everett a compelling place to invest. I WILL POST A LARGE PICTURE IN MY NEXT POST OF AVAILABLE OPPORTUNITY ZONE LOCATIONS.
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or investment advice. Consult with your CPA, attorney, or investment advisor before acting on any investment opportunity.
For more information Snohomish County Commercial Real Estate, reach out anytime.
Scott Weitz
T: 206-306-4034 (please text on initial communication).
Scott@Weitzcommercial.com
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