National real estate investor and developer Lightstone announced a new partnership with wealth management consulting firm The PKS Group, led by Peter K. Scaturro, former CEO of U.S. Trust and Partner at Goldman Sachs Private Wealth Management.
The platform will finance the acquisition and development of real estate projects located within Opportunity Zones, offering individual single-asset investment opportunities.
The first development in the platform is a 203-key Marriott Moxy hotel in Williamsburg, Brooklyn.
The Williamsburg location will be Lightstone’s fifth Moxy in New York City, joining the 612-room flagship property in Times Square which opened in 2017, the newly-opened Moxy Chelsea, and two properties under development in the East Village and on the Lower East Side. With additional Moxy properties under development in Miami and Downtown Los Angeles, Moxy Williamsburg will be the company’s seventh Moxy nationwide.
“We’re pleased to bring together the real estate investment and development experience of Lightstone and the capital raising experience of PKS,” said Lightstone founder David Lichtenstein. “With this first investment, we will be building upon Lightstone’s substantial track record in hospitality development, which positions us as a uniquely qualified opportunity zone sponsor. We look forward to working with PKS and to building our Opportunity Zone platform together.”
“What distinguishes Lightstone from other sponsors is its extensive development capabilities. With its accomplished in-house team and over $3.5 billion under development, Lightstone offers a breadth of experience that’s hard to match,” said PKS founder Peter Scaturro.
“Typically, our clients prefer to make direct investments rather than to invest in blind pools. Lightstone already controls several development-ready properties in identified Opportunity Zones, with our development already underway in Williamsburg. We see that as anadvantage for our clients.”
Opportunity Zones, which are designated by state governors and the U.S. Treasury, were created under the Tax Cuts and Jobs Act to spur investment in economically challenged areas by providing tax incentives to investors.