Capital Square Secures Construction Financing for Virginia OZ Project
Capital Square, a sponsor of tax-advantaged real estate investments and developer of multifamily communities, announced that the firm has secured financing from United Bank to fund construction of a 352-unit, Class A multifamily development in the Scott’s Addition qualified opportunity zone in Richmond, Virginia.
Construction began in April 2023 and is expected to be completed by Summer 2025.
The development is primarily funded by CSRA Opportunity Zone Fund VII LLC, a qualified opportunity zone fund launched by Capital Square in 2022, which is currently raising approximately $63.3 million in equity from accredited investors. CSRA Opportunity Zone Fund VII is the fifth opportunity zone fund launched by Capital Square to develop similar multifamily properties in Richmond’s Scott’s Addition neighborhood.
“Capital Square has delivered for opportunity zone investors by building exceptional Class A housing communities and delivering them on time and on budget, then leasing them up in record time, and commanding the highest rents in the submarket,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “This construction loan is the next critical step in the development process for CSRA Opportunity Zone Fund VII.”
Located at 2929 W. Clay St., 2922 W. Marshall St., and 2925 W. Marshall St., the community will include three adjoining multifamily buildings above podium parking with over 5,350 square feet of ground-level retail space. Amenities will reportedly include lush courtyards, a zero-edge pool, gym, clubhouse, dog park, sky lounge and more. Residents will be within walking distance of arts, cultural and lifestyle amenities provided by the Scott’s Addition neighborhood, which contains over 51 retail, dining and entertainment venues.
Capital Square previously launched CSRA Opportunity Zone Fund I LLC, CSRA Opportunity Zone Fund II LLC and CSRA Opportunity Zone Fund III LLC, which raised capital from accredited investors to develop Scott’s Collection, a trio of single-structure, ground-up developments featuring five-story, Class A multifamily communities with onsite parking and an expansive amenity package, all within the Scott’s Addition qualified opportunity zone. CSRA/GS Opportunity Zone Fund V LLC raised capital from investors to fund the development of The Otis, a joint venture with Greystar Real Estate Partners in Scott’s Addition.
“Capital Square’s opportunity zone developments in Richmond have been tremendously successful on multiple levels,” said Whitson Huffman, co-chief executive officer of Capital Square. “They have not only proven to be excellent investments for our company and the investors we serve, but they have also provided tremendous local economic and fiscal benefits to our hometown of Richmond and the Commonwealth of Virginia that will generate millions of dollars in tax and private economic revenue for many years to come.”
Since its founding in 2012, Capital Square has acquired 171 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 and other investors seeking stable cash flow and capital appreciation. The company has completed more than $7.5 billion in transaction volume.
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