Capital Square Closes on Construction Loan for Project-Specific Opportunity Zone Fund
June 30, 2020
Capital Square, a sponsor of tax-advantaged real estate investments, has secured a loan from M&T Bank to facilitate the construction of Scott’s Collection I, a mixed-use multifamily property in the Scott’s Addition designated opportunity zone in Richmond, Virginia.
The development of Scott’s Collection I is the direct result of CSRA Opportunity Zone Fund I LLC, a project-specific opportunity zone fund launched by Capital Square in July 2019. The opportunity zone fund raised equity to begin the development of the project.
“Capital Square’s Scott’s Collection I is an important part of the transformation of Richmond’s Scott’s Addition neighborhood,” said Louis Rogers, founder and chief executive officer of Capital Square. “Our partnership with M&T Bank highlights the strength and vitality of the project. Lenders have become increasingly cautious since the outbreak of the coronavirus pandemic.”
He added, “Capital Square’s ability to source this loan during the pandemic demonstrates the depth of our lender relationships and the importance of the Scott’s Collection development as part of the revitalization of this emerging neighborhood.”
Part of a collection of three mixed-use multifamily properties, Scott’s Collection is Capital Square’s inaugural development project and part of the transformation of Scott’s Addition from an industrial part of Greater Richmond into an urban residential and retail destination.
Rogers noted that Scott’s Collection will bring more than $50 million in revitalization to the surrounding area.
Scott’s Collection I is a single-structure, ground-up development that will include a five-story, Class A multifamily community with 80 units, private balconies and a lobby area. Situated on approximately 0.54 acres of land, the property will include a 3,700-square-foot, elevated courtyard and 65-70 onsite parking spaces.
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