Capital Square Acquires Parcel of Land in Scott’s Addition for Opportunity Zone Development in Richmond, Virginia
RICHMOND, Va. (Aug. 29, 2019) – Capital Square, a leading sponsor of tax-advantaged real estate investments, announced today the acquisition of a parcel of land in Richmond, Virginia’s Scott’s Addition opportunity zone. The land will be used to develop “Scott’s Collection II,” a Class A, 60-unit multifamily community.
“Capital Square is one of the most active multifamily investors in the Richmond area,” said Louis Rogers, founder and chief executive officer. “This land acquisition allows Capital Square to continue to grow by developing our own properties. We are very excited to close on the acquisition of this parcel of land, which is not only located in Richmond’s second-highest performing multifamily market, but is also in an opportunity zone where we can help promote economic growth with exceptional tax benefits in our home city.”
Located at 2900-2904 West Clay St., the ground-up development will include a five-story, Class A multifamily community with 60 units and onsite parking spaces.
Established in 1901, Scott’s Addition is a historic area that is now the City of Richmond’s fastest growing neighborhood and the second-highest performing market with 97.6 percent occupancy. Scott’s Addition is a designated opportunity zone with a census tract that stretches across Virginia Commonwealth University and the Carver neighborhood. The submarket’s apartment rental rates have increased 8.1 percent on a year-over-year basis and are projected to increase three to four percent per year for five years, according to Yardi Matrix.
“The Scott’s Addition neighborhood boasts desirable multifamily fundamentals with both a high market occupancy rate and amenities, such as an appealing food scene, incredible breweries and more, that draw renters to the area,” said Adam Stifel, executive vice president of development. “We couldn’t be more excited to continue to add to Scott’s Addition’s growth with progressive and contemporary designed real estate in an area where the supply is greatly outweighed by the demand.”
Capital Square recently announced the launch of CSRA Opportunity Zone Fund I, LLC, a project-specific opportunity zone fund that will develop Scott’s Collection I adjacent to Scott’s Collection II. Scott’s Collection I is a single-structure, ground-up development that will include a five-story, Class A multifamily community with 80 units.
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 fund investments seek to help foster economic growth in distressed areas by providing tax benefits to incentivize private investments in designated opportunity zones.
About Capital Square
Capital Square is a national investment sponsor specializing in tax-advantaged real estate offerings, including Delaware statutory trusts and qualified opportunity zone funds. Capital Square has completed over $1.5 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. Its founder, Louis Rogers, has structured hundreds of investment offerings totaling in excess of $5 billion. 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. In both 2017 and 2018, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. In the same years, the company was also ranked on Richmond BizSense’s list of fastest growing companies. In 2019, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” and “Fantastic 50” reports. To learn more, visit www.CapitalSquare1031.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 multi-family 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.