Capital Square Breaks Ground on Fourth Virginia Opportunity Zone Project
May 26, 2021
Capital Square, a sponsor of tax-advantaged real estate investments, and its construction partners have broken ground on Scott’s Collection III, a multifamily development in the Scott’s Addition qualified opportunity zone in Richmond, Virginia.
Located at 3001 W. Leigh St., Scott’s Collection III is a ground-up development that will include a five-story multifamily community with 72 units, private unit balconies and a lobby area. Situated on 0.5 acres of land, the property will have a 3,000-square-foot elevated courtyard, 2,500 square feet of ground-floor space and 61 onsite parking spaces.
Scott’s Collection III is the third in a trio of developments that will make up “Scott’s Collection” in Scott’s Addition, a historic area established in 1901.
The latest development is the result of CSRA Opportunity Zone Fund III LLC, a project-specific opportunity zone fund launched by Capital Square in December 2019 and sought to raise $7.5 million in investor equity.
“This groundbreaking represents the culmination of three years of work, fundraising, educating our investor base on opportunity zones, and countless hours of planning, design, project management, sourcing debt and contracting,” said Adam Stifel, executive vice president of development. “We set out with a vision to provide a best-in-class boutique apartment product across three buildings, which will each benefit from the combined amenities package. Each of the buildings have different offerings, and different personalities.”
Assisting in the development of Scott’s Collection III are 510 Architects, the architecture firm; Urbancore Construction, the general contractor; Fulton Bank, which provided the construction loan financing; and Greystar, the property manager.
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.
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