LeSean McCoy is a former NFL star who recently began dabbling in real estate. On the path to building an empire, LeSean McCoy discusses below how Opportunity Zones are taking remodeling to a whole new level.
The federal 2017 Tax Cuts and Jobs Act developed an opportunity zone legislation. While some investors initially shied away from the concept, many now see it as a great way to not only reinvigorate once-lively areas but also give back to a community they love. After all, turning distressed properties into beautiful buildings makes money and is ultra-rewarding.
In fact, opportunity zones struck such a cord with ex-NFL running back LeSean McCoy that he plans to build a real estate empire using them!
Harrisburg’s Six Designated Opportunity Zones
The qualified opportunity zone tool was enacted on December 22, 2017, to promote long-term investments in low-income neighborhoods.
At the time, the governor was able to designate a maximum of 25% of census tracts with poverty rates of at least 20% or median family incomes no more than 80% of the metropolitan family income.
With 1,200 eligible tracts, the governor deemed 300 as qualified opportunity zones based on recommendations, the probability of private-sector investment, and economic data.
Investments made by individuals in these areas through the various Pennsylvania OZ funds listed below can defer or eliminate government taxes on capital gains:
- Alpha Opportunity Zone Fund I
- Decennial Opportunity Zone Fund I LLC
Halpern Real Estate Ventures OZ Fund - Quincy Freedom Fund
- TPP Real Estate Development Fund, LP
- Aliquippa Renaissance Fund
- Urban Array Opportunity Fund
- Woodforest CEI-Boulos Opportunity Fund
Six qualified opportunity zones are in Harrisburg, Pennsylvania, creating plenty of places for real estate investors to go wild, help the community, and make some cash.
The population of the city’s opportunity zones is roughly 20,000, representing a rather large 41% of the total population (49,000). The median household income here ranges from $25,000 to $43,000.
As for their location, each one sits inside Dauphin County lines, with the majority running alongside the Susquehanna River.
LeSean McCoy Says Opportunity Zones Spark a Multitude of Investment Interest from a Familiar Face
All the excitement over Harrisburg’s opportunity zones quickly piqued the interest of the Super Bowl champ and ex-Tampa Bay Buccaneer, LeSean McCoy.
LeSean McCoy began seriously venturing into property in 2018 when he founded Vice Capital, a real estate firm, with his older brother, the ex-wide receiver, LeRon. The brothers recent change the name of their company to the McCoy Boys.
The brothers started by purchasing their childhood home in none other than the city of Harrisburg, renovating it, and gifting it to their parents.
LeSean McCoy explains that what started as nothing more than a way to give back to their family and have an enjoyable post-football future has snowballed into them already acquiring 60 properties — both commercial and residential!
Despite their incredible successes, they still assure that each new property will impact and improve an underserved community. And this is where Harrisburg’s opportunity zones come into play.
Making Positive Moves in Hometown Harrisburg
The McCoy Boys use opportunity zones to buy decrepit buildings and renovate them to create affordable housing units and commercial spaces.
OZs are designed to benefit the developer and the community by injecting value without hiking the rent that would force current residents out of their rebuilding neighborhoods.
While LeSean McCoy was initially skeptical about the legislation, he conducted thorough research and concluded it was a win-win.
In fact, they bought a run-down 19th-century mansion on a dilapidated block in Harrisburg back in 2019.
What once was a business district for the area’s most well-known and successful African Americans was crumbling says LeSean McCoy. Multiple years of neglect meant nearly every company on the 1000 block of N. Sixth Street had turned to dust.
So, what have the McCoy brothers set out to do? Restore it, of course!
Alongside the renovated mansion, LeSean McCoy’s company has eight apartments and two retail units. Plus, they are beginning an apartment complex project in the near future after purchasing buildings 1522, 1524, and 1526, which were once owned by Dean Carter and his father, Zubber Carter. And yes, they’re all on the same block.
The opportunity zones in Harrisburg are helping LeSean McCoy and his brother build their real estate empire and commit to bettering underprivileged communities.
And they aren’t the only famous faces to do so!
David Robinson, the former NBA player, utilizes opportunity zones and their funds for development and investment. Much like McCoy Boys, Robinson’s firm, Admiral Capital, focuses on real estate deals with a positive social impact.
Harrisburg Opportunity Zones: Where Investors Put Distressed Buildings Back in Business
Harrisburg should once again see thriving neighborhoods, thanks to opportunity zones and real estate investors like LeSean McCoy and his firm.
