Cleveland-based MCPc announced this week that it will make a $12.5 million investment in the Madison Square neighborhood of Grand Rapids. The building, located in one of Grand Rapids’ eight opportunity zones, will be finished next year and is expected to add 26 new jobs.
MCPc is a data protection company providing cybersecurity and technology logistics services. The company currently has about 80 employees in western Michigan.
Previous tenants of the building included Dexter Lock Company, but it has been vacant for the past two decades. As part of the development, which was assisted by various tax credits and incentives, MCPc committed to filling at least 30% of the new jobs created with employees from the Madison Square neighborhood.
Financing for the project is being provided by PNC bank.
Operating business OZ investments
While most investment activity in opportunity zones consists of developing traditional real estate such as apartment buildings, a number of operating businesses are taking advantage of the opportunity zone tax incentives as well.
Several OZ funds invest in operating companies: the Verte Opportunity Fund invests in early stage companies located in opportunity zones; and the Hall Opportunity Fund invests in companies in a state-of-the-art business incubation center in Provo, Utah.
The upcoming OZ Pitch Day Summer 2021 will feature presentations from multiple operating businesses, including:
- Darwin Mining OZ Fund: Restarting a historic California mine with nine critical mineral deposits in addition to large quantities of zinc, silver, and gold.
- Music Town Master Planned Opportunity Zone Fund: Developing the largest walkable, multi-genre, live music entertainment district in the United States.
To see these OZ pitches, sign up for OZ Pitch Day here. The OZ Pitch Day event will be streamed live on July 27, 2021.