Capital Square Announces Groundbreaking of 529 King Street ROOST Apartment Hotel in Charleston Opportunity Zone
CHARLESTON, S.C. (July 21, 2022) – Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and a developer of mixed-use multifamily communities, today announced it has broken ground on 529 King Street ROOST Apartment Hotel, a luxury apartment hotel located in the Garden District of Charleston, South Carolina within a qualified opportunity zone. Construction of the development is expected to be completed by summer 2023.
“Charleston, for all of its southern charm and grace, lacks extended stay housing options. The problem was magnified during the COVID pandemic, when large portions of the economy were closed and construction mostly came to a halt,” said Louis Roger, founder and chief executive officer. “Capital Square is pleased to report that, in spite of the many challenges encountered during the pandemic, ground has been broken to build a luxury apartment hotel on world-famous King Street.”
The five-story project will feature 50 luxury units, including a mix of studio, one-, two- and three-bedroom units. The apartment hotel units will operate under the ROOST Apartment Hotel brand, a division of Method Residential. The final development will total approximately 32,000 net rentable square feet of apartment and retail space which includes a lush courtyard and a rooftop lounge that will be open to the public. The facade will be a modern interpretation of the historic Victorian-era aesthetic that’s prevalent in Charleston.
Community amenities will include 44 valet-operated parking spaces, a private and lush interior courtyard that will function as an open-air living room, a fitness center, a library and coworking space, a guest-only lounge, a semi-private terrace or balcony, and a publicly accessible rooftop lounge with views of downtown Charleston and the harbor.
Located in the Garden District of Charleston, 529 King Street is within a charming area filled with Greek Revival and folk Victorian residences. Charleston is known for its coastal charms and historical sites, such as Morris Island Lighthouse, the Old Exchange and Provost Dungeon and McLeod Plantation. Near a thriving downtown area, the property is close to a variety of restaurants, cultural sites and entertainment venues, including the Waterfront Park Pier and Rainbow Row. It’s an ideal setting for those who seek a peaceful neighborhood with access to exciting events nearby. Located in close proximity to the College of Charleston and other notable local institutions, the property is additionally near Highway 17 and the prominent Arthur Ravanel Jr. Bridge, providing easy access to Greater Charleston.
“Capital Square is an active developer of luxury properties in growing markets in the Southeast and we couldn’t be more pleased to begin construction on our inaugural project in Charleston,” said Whit Huffman, chief strategy and investment officer. “Charleston is a premier market, home to a growing community of high-income families and one of the nation’s most popular tourist destinations. 529 King Street will contribute to this legacy and become a premier destination for local residents and tourists alike.”
Capital Square has partnered with Morris Adjmi & LS3P as building architect, BL Harbert as general contractor and Method Residential as the retail leasing agent and co-developer of the property.
Development of 529 King Street ROOST Apartment Hotel will be primarily funded with proceeds from Capital Square’s fourth qualified opportunity zone fund, CSRA Opportunity Zone Fund IV, LLC, which raised approximately $15 million from accredited investors. Capital Square is an active sponsor of qualified opportunity funds and recently launched CSRA Opportunity Zone Fund VII, LLC to fund the development of a luxury multifamily development in the Scott’s Addition neighborhood of Richmond, Virginia. Capital Square’s opportunity zone funds have initiated over $330 million in development value to-date.
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.
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, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of multifamily and mixed-use properties in the southeastern US, with nine current projects totaling approximately 1,700 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $6.0 billion in transaction volume. 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. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense’s list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” report in 2019 and their “Fantastic 50” reports in 2019 and 2020. To learn more, visit www.CapitalSq.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. Diversification does not guarantee profits or protect against losses. Private placements are speculative.