Capital Square Opens OZ-Funded Luxury High-Rise in Downtown Raleigh
Capital Square has officially opened Maeve, a 20-story, luxury mixed-use high-rise located in Raleigh, N.C. The $121 million project, developed within a federally designated opportunity zone, was financed in part by proceeds from Capital Square’s CSRA Opportunity Zone Fund VI, LLC.
“What was once a shuttered building and a surface parking lot has become a magnificent 20-story landmark apartment tower with ground-floor retail, extending the downtown core south,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “By investing in Maeve, investors from North Carolina and beyond are able to participate in Raleigh’s growth engine. And the icing on the cake for investors – taxes on the sale of Maeve will be forgiven after a 10-year holding period under the opportunity zone legislation.”
Originally addressed at 320 West South St., and now utilizing the address of 319 West Lenoir St., Maeve includes 297 apartment homes and more than 10,000 square feet of street-level retail. The community offers studios to three-bedroom units with upscale features such as exposed concrete ceilings, stainless steel appliances, luxury vinyl and tile flooring, and modern cabinetry.
The community also features a dramatic double-height lobby connected to 30,000 square feet of amenities, including a resort-style pool, rooftop lounge, coworking spaces, and fitness center. A multilevel parking garage is also available.
Capital Square reported that Maeve is one of the few luxury apartment communities in Raleigh’s downtown submarket known as the Warehouse District, and is within walking distance of entertainment venues, restaurants, cultural landmarks, and major employers. Proximity to U.S. Route 70 allows for convenient travel to the Research Triangle and nationally renowned educational institutions, including Duke University, the University of North Carolina at Chapel Hill, and North Carolina State University.
Capital Square reported that the project supported an estimated annual average of 750 jobs across the Raleigh-Cary metropolitan statistical area during its construction. Additionally, the firm stated that the project generated an estimated $108.5 million in annual economic output, $76.3 million in gross domestic product, and $52.6 million in labor income during its construction phase. In addition, $3.8 million in state and local tax revenues, and $11.1 million in federal taxes were generated.
Now operational, the firm says that Maeve supports 78 permanent jobs and is expected to generate $23.4 million annually in GDP, $4 million in labor income, $600,000 in federal taxes, and approximately $1.5 million in state and local tax revenue.
Capital Square partnered with JDAVIS Architects as building architect and W.M. Jordan Company as general contractor. The design team also included Architecture Firm as interior designer and EDSA as landscape designer. Greystar is the property manager, and York Properties is serving as the leasing agent for the retail spaces. Maeve was funded with a construction loan from First National Bank of Pennsylvania, equity from FrontRange Capital Partners, and proceeds from Capital Square’s sixth qualified opportunity zone fund, CSRA Opportunity Zone Fund VI, LLC.
The grand opening event was attended by a host of key partners and local dignitaries, including Raleigh Mayor Janet Cowell.
The Maeve unveiling marks another milestone in a busy year for Capital Square. In March, the company fully subscribed its sixth build-for-rent housing offering, which itself followed the full subscription of a Delaware statutory trust private placement near Chattanooga, Tenn. The company also recently made key personnel additions to its sales force, hiring a new vice president of national accounts and a new regional vice president for the Southwest territory.
Since its founding in 2012, Capital Square has acquired more than 170 real estate assets for over 6,500 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code, along with opportunity zone funds and a real estate investment trust that acquires rental housing in the Southeast and Texas. In total, Capital Square has completed more than $7.9 billion in transaction volume, and its mixed-use development projects total over 2,000 apartment units with a total development value in excess of $800 million.
