Capital Square Launches Opportunity Zone Fund III for Multifamily Development in Richmond, VA
RICHMOND, Va. (Dec. 19, 2019) – Capital Square, a leading sponsor of tax-advantaged real estate investments, announced today the launch of CSRA Opportunity Zone Fund III, LLC. The project-specific opportunity zone fund is raising capital to develop “Scott’s Collection III,” a 72-unit, Class A multifamily property in the Scott’s Addition designated opportunity zone in Richmond, Virginia.
Scott’s Collection III is the third project in a trio of adjacent opportunity zone developments that Capital Square has started this year. The firm has previously launched CSRA Opportunity Zone Fund I, LLC and CSRA Opportunity Zone Fund II to develop Scott’s Collection I and II, each a single-structure, ground-up development featuring a five-story, Class A multifamily community with 60 units and 80 units, respectively, private unit balconies and onsite parking.
“The launch of Fund III follows the successful fundraising for Funds I and II, also in Scott’s Addition,” said Louis Rogers, founder and chief executive officer. “We are gratified that many local and national investors are excited by the opportunity to invest in Capital Square’s backyard.”
Located at 3001 West Leigh St., the single-structure, ground-up development will include:
• a five-story, Class A multifamily community with 72 units,
• private unit balconies and lobby area,
• elevated courtyard, and
• 61 onsite parking spaces.
“Apartment supply has been unable to keep up with demand in Scott’s Addition,” said Adam Stifel, executive vice president of development. “Walkable amenities, nightlife, breweries and more have brought incredible energy to the neighborhood, but living options remain sparse compared to the pent-up demand. Our projects are boutique, efficient, contemporary and highly thoughtful both inside and out. We believe this style of building will be well-received in a neighborhood that clearly identifies with craft products and local dedication, and supporting all things uniquely Richmond.”
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% occupancy, according to Yardi Matrix. Scott’s Addition is a designated opportunity zone. Apartment rental rates in the neighborhood have increased 8.1% on a year-over-year basis and are projected to increase three to four percent per year for five years.
Opportunity zones were created to stimulate long-term private investments in low-income urban and rural communities, along with certain contiguous areas. 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.
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 and qualified opportunity zone funds for tax deferral and exclusion. Capital Square has completed more than $1.6 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 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. In 2017 and 2018, 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.