Capital Square Buys Land for Opportunity Zone Multifamily Development in Richmond, Virginia
August 30, 2019
Capital Square, a sponsor of tax-advantaged real estate investments, has purchased a parcel of land in Richmond, Virginia’s Scott’s Addition opportunity zone to develop a multifamily community named Scott’s Collection II. 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 now the City of Richmond’s fastest growing neighborhood and the second-highest performing market with 97.6 percent occupancy, the company noted.
Capital Square recently launched CSRA Opportunity Zone Fund I LLC, an opportunity zone fund that will develop Scott’s Collection I, a five-story, Class A multifamily community with 80 units that will sit adjacent to Scott’s Collection II.
Scott’s Addition is a designated opportunity zone with a census tract that includes 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.”
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.
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