City Business Guides, Denver

Opportunity Zones in Denver: Investment Guide for Business Owners

Opportunity Zones in Denver

Denver has 17 Qualified Opportunity Zones (QOZs) designated under the 2017 Tax Cuts and Jobs Act. These zones are located in historically underinvested neighborhoods across the Denver metro and offer significant capital gains tax incentives for investors who deploy capital through Qualified Opportunity Funds (QOFs). Here’s what Denver business owners and real estate investors need to know.

How Opportunity Zones Work

Opportunity Zones offer three capital gains tax benefits for investors:

Deferral: Capital gains reinvested in a QOF within 180 days are deferred until December 31, 2026 or when the QOF investment is sold (whichever comes first)
Reduction: QOF investments held for at least 5 years receive a step-up in basis
Exclusion: QOF investments held for at least 10 years pay ZERO capital gains tax on appreciation of the QOF investment itself — the most powerful benefit

Denver Opportunity Zone Neighborhoods

Denver’s designated Opportunity Zone census tracts are concentrated in several key neighborhoods:

Globeville and Elyria-Swansea

Two historically underinvested Denver neighborhoods north of downtown being transformed by I-70 reconstruction, National Western Complex redevelopment, and proximity to RiNo. Active OZ investment targets include mixed-use residential/commercial, light industrial, and food production businesses.

Cole and Clayton

Northeast Denver neighborhoods near the 38th & Blake light rail corridor with growing redevelopment activity. Active residential and mixed-use OZ investment with proximity to RiNo’s rapidly rising land values.

Sun Valley

West Denver neighborhood adjacent to Mile High Stadium (Empower Field) undergoing major redevelopment through the Sun Valley Eco-District. Denver Housing Authority and city investment creating significant OZ opportunity in this area.

Westwood and Villa Park

West Denver neighborhoods with active community development investment and growing Latino-owned business clusters. OZ capital targeting small business real estate and community facilities.

Montbello and Green Valley Ranch

Northeast Denver and Aurora-adjacent areas with OZ designations. Affordable residential and commercial space with strong community development activity.

Active Denver Opportunity Zone Investments

National Western Complex

The $800M+ redevelopment of the National Western Center in Globeville/Elyria-Swansea is one of the most significant OZ-adjacent development projects in Colorado. Includes an indoor arena, convention space, food and agricultural innovation campus, and educational facilities. Several adjacent parcels sit in designated OZ tracts.

38th & Blake Station Area

The RTD light rail corridor near RiNo has attracted significant mixed-use development with OZ-eligible parcels. Proximity to Denver’s booming RiNo neighborhood makes this one of the highest-activity OZ corridors in the metro.

Sun Valley Eco-District

City-supported master plan for Sun Valley focused on affordable housing, green infrastructure, and economic development. OZ funds targeting mixed-income housing and retail/commercial space in this area.

How to Invest in Denver Opportunity Zones

To invest in Denver OZs, you must invest through a Qualified Opportunity Fund. Steps:

Realize a capital gain (from stock sale, real estate sale, business sale, etc.)
Within 180 days, invest that gain into a QOF
Ensure the QOF invests at least 90% of its assets in Qualified Opportunity Zone Property in Denver
Hold for 10+ years to eliminate capital gains tax on QOF appreciation

Consult a Denver tax attorney or CPA before making OZ investments — the rules are complex and the IRS has issued extensive guidance. Recommended Denver advisors: Brownstein Hyatt, Davis Graham & Stubbs, Plante Moran, and Anton Collins Mitchell.