Capital Square Launches CSRA Opportunity Zone Fund VII to Develop the Fifth Apartment Community in Richmond, Virginia
April 19, 2022 | Capital Square
Capital Square, a national investment sponsor specializing in tax-advantaged real estate investments, announced today the launch of CSRA Opportunity Zone Fund VII, LLC. The project-specific opportunity zone fund will raise capital to develop approximately 350 apartment units in the Scott’s Addition neighborhood of Richmond, Virginia’s. CSRA Opportunity Zone Fund VII seeks to raise $41,438,000 in equity from accredited investors. This is Capital Square’s seventh opportunity zone fund and fifth apartment community being developed in Richmond.
“Capital Square’s development team is on track and on budget in the development of five Class A apartment communities in Richmond and Raleigh, North Carolina, in spite of a global pandemic that has put many developers on the sidelines,” said Louis Rogers, founder and chief executive officer. “It is a testament to Capital Square’s strength that development activity has actually increased dramatically at a time like this.”
Located at 2935 W. Clay St., 2944 W. Marshall St., and 2931 W. Marshall St., the community will include three five- and six-story residential buildings above podium parking. Construction is slated to begin in the first quarter of 2023. The finished project will include retail amenities.
Established in 1901, Scott’s Addition is a historic area that is now the City of Richmond’s fastest growing neighborhood, according to the Scott’s Addition Boulevard Association. The area is known for its food, drink and entertainment amenities, including 13 breweries, cideries, meaderies and distilleries, within a walkable, seven block area. The area caters to a growing number of millennial residents and empty-nesters.
Once a hub for industrial buildings and businesses, Scott’s Addition is the number one “millennial hot-spot” in Virginia, with a 43% increase in millennials in just five years, according to RENTCafe. Scott’s Addition is the second-highest performing market in Richmond, according to Yardi Matrix.
“The continued growth of Scott’s Addition makes it a great place to develop,” said Whitson Huffman, chief strategy and investment officer. “The area is the second-highest performing market in Richmond, with an approximate 97.8% occupancy for multifamily units. Our team is excited to begin our fifth multifamily development in Scott’s Addition. Capital Square is building the future of Richmond.”
Opportunity zones were created to stimulate long-term private investments in low-income urban and rural communities nationwide. Conceived as part of the Tax Cuts and Jobs Act of 2017, opportunity zone funds are intended to help foster economic growth by providing tax benefits to incentivize private investments in designated opportunity zones.
Source: Yardi Matrix
About Capital Square
Capital Square is a 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, an Apartment Real Estate Investment Trust for stable income and growth, and development funds. Since 2012, Capital Square has completed more than $5.6 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. 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. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense’s list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” report in 2019 and their “Fantastic 50” reports in 2019 and 2020. To learn more, visit www.CapitalSquare1031.com.
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