Capital Square
Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer and manager of housing communities, announced today that its offering, CSRA Opportunity Zone Fund VIII, LLC, has been fully subscribed. The Regulation D private placement offering, which raised nearly $46.684 million from accredited investors, is comprised of Livano Knoxville, a 348-unit, Class A multifamily community in Knoxville, Tennessee. The project, co-developed by Capital Square and LIV Development, broke ground in June 2023 with an expected construction completion date of fall 2025.
“Livano Knoxville is one of the most exciting projects in Capital Square’s history,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “The location of the project is unmatched – across the Tennessee River from University of Tennessee’s Neyland Stadium – in a supply constrained market.”
Located at 451 W. Blount Ave., just south of the Tennessee River and adjacent to the University of Tennessee’s Neyland Stadium, Livano Knoxville will include studio, one-, two- and three-bedroom apartment homes averaging approximately 930 square feet. The property features 35 workforce housing units for residents who earn up to 80% of the area’s annual medium family income level.
Residents will have access to major employers, including the U.S. Department of Energy Oak Ridge National Laboratory, Covenant Health, the University of Tennessee, Tennessee Valley Authority, Knox County Schools, University Health System, The Dollywood Company, Clayton Homes, DENSO Corporation, Tennova Healthcare and Blount Memorial Hospital.
“Livano Knoxville is located next to the Great Smoky Mountains and the Tennessee River in South Knoxville, where occupancy rates are expected to stay above 95% for the next decade,”1 said Whitson Huffman, co-chief executive officer. “With strong occupancy rates, and rent increases expected to exceed 2.8% through 2027, the Knoxville MSA has proven to be an ideal investment market for delivering best-in-class projects to our investors.”
Knoxville is the third largest city in the state behind only Nashville and Memphis.2 The area is home to 18 four-year and two-year colleges and universities, led by the University of Tennessee, which has an annual enrollment of approximately 31,000 students and employs 11,700 academic and administrative employees.3 The university’s endowment exceeds $1.3 billion.4
Capital Square is an active sponsor of qualified opportunity zone funds and recently launched CSRA Opportunity Zone Fund IX, LLC to fund the development of an approximately 320-unit, mixed-use apartment community and luxury hotel in the Scott’s Addition designated opportunity zone in Richmond, Virginia. Capital Square’s opportunity zone funds have initiated almost $790 million in development value to-date.
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 and other investors seeking stable cash flow and capital appreciation, along with opportunity zone funds and a real estate investment trust (REIT) that acquires rental housing in the Southeast and Texas.
Sources:
1. Yardi Matrix, 2023. | 2. https://www.tennessee-demographics.com/cities_by_population, 2022. | 3. https://oira.utk.edu/reporting/fact-book/, 2022. | 4. FY22 Endowment Overview, 2022.
About Capital Square
Capital Square is a vertically integrated national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). The company is also an active developer and manager of multifamily communities. Since 2012, Capital Square has completed more than $7.8 billion in transaction volume. Capital Square’s mixed-used development projects total over 2,000 apartment units with a total development cost in excess of $790 million, and Capital Square Living, the firm’s property management division, now manages over 7,000 apartments across multiple states. Capital Square’s related entities provide a range of services – including due diligence, acquisition, loan sourcing, property/asset management and disposition – for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. Recognized by Inc. 5000 as one of the fastest growing companies in the nation for seven consecutive years, Capital Square raises capital, buildings and expectations. Learn more at CapitalSq.com.
Disclaimer: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative. Diversification does not guarantee profits or protect against losses. FINRA BrokerCheck link: https://brokercheck.finra.org/.
