What is an Opportunity Zone (OZ)?
Opportunity Zones, created as a result of the Federal Tax Cuts and Jobs Act of 2017, are designed to encourage long-term investments in designated portions of a community. Tax incentives are provided to investors who reinvest their unrealized capital gains into one of the designated zones. Virginia Beach has eight (8) designated opportunity zones.
Opportunity Zone Overview
Virginia Beach Opportunity Zones
In Virginia Beach, there are eight opportunity zones.
The Corporate Landing OZ is a business park hosting the landing site for the highest capacity submarine fiber cables in the world. MAREA spans the Atlantic Ocean from Bilbao, Spain, and BRUSA hugs the eastern America continental coasts and starts at Rio de Janeiro. Microsoft and Facebook were the primary funding sources for MAREA. MAREA’s capacity has been rated at 200 terra-bytes per second (Tbps) and BRUSA 138. These next-generation cable systems will supply ultrafast broadband connectivity with South America and Europe. Google landed a third broadband system known as Dunant which used a new 12 fiber-pair Space Division Multiplexing system to boost the transmission speed to 300 Tbps.
The Seatack OZ accommodates tourism amenities. Located next to the pristine beaches and a creative art district, the zone hosts a LEED-certified and internationally renowned convention center with more than half a million square feet. Across the street, a new state of the art indoor sports center has been constructed. More than 100 hotels support these venues.
The Oceana OZ is adjacent to the largest US Navy Master Jet Airbase. NAS Oceana hosts a military force of nearly 20,000 military members (including the elite Navy SEAL teams), civilian employees, many defense contractors, and the newest F/A-18 Super Hornet fighter jets. The Oceana OZ would be an ideal site for a defense company.
The Hilltop Opportunity Zone is a vibrant retail district and gateway to the City's robust health care industry, the largest east coast master jet base (NAS Oceana), and the pristine beaches. The zone is filled with eclectic and commercial restaurants, specialty retail, and professional services.
The Lynnhaven OZ is adjacent to the West Oceana Corporate Park and is home to a large shopping mall. The park hosts the globally recognized STIHL power hand tool manufacturer, the long-term presence of Hermes Abrasives, and the advanced manufacturing company IMS: Gear.
The Bonney OZ is adjacent to the City’s central business district. The district is headquarters for the Armada-Hoffler Properties real estate developer, headquarters for the architectural and engineering firm Clark-Nexsen, and accommodates the elite retailers: Nordstrom Rack, Diamonds Direct, and REI. In addition, the central business district hosts the tallest building in the state. It is the luxury class Westin Hotel and lies adjacent to the Sandler Center for the Performing Arts.
Ideal for manufacturing, the Burton Station OZ has immediate access to the Norfolk International Airport and the Buckingham rail line. The railbed runs directly through the OZ and to the Port of Virginia’s Norfolk terminals. The OZ includes the Airport Industrial Park. Many manufacturing companies would find synergistic capabilities within the park.
The Cleveland Street Opportunity Zone is currently an industrial corridor experiencing transformative business dynamics. A planned widening of the roadway and installation of pedestrian-friendly walkways linking to the Central Business District will encourage vibrant economic vitality from the Town Center through the Cleveland Street corridor.
There are nearly 8,800 designated opportunity zones nationwide. According to government statistics, $75 billion has been invested in opportunity zones throughout the United States.