Capital Square Closes on Construction Loan for Project-Specific Opportunity Zone Fund
RICHMOND, Va. (June 29, 2020) – Capital Square, a leading sponsor of tax-advantaged real estate investments, announced today that the firm 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. 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 a thriving hip, urban residential and retail destination.
Rogers noted that Scott’s Collection will bring over $50 million in revitalization to the surrounding area.
Located at 3000 – 3008 West Clay St., 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, Scott’s Collection I will feature a 3,700-square-foot, elevated courtyard and 65-70 onsite parking spaces. The corner-lot property has unobstructed views of the Scott’s Addition neighborhood and downtown Richmond.
Capital Square was represented by Jamie Butler, managing director of capital markets at Walker & Dunlop, in securing the construction loan from M&T Bank.
“We are pleased to deliver this modern development to Capital Square’s home city and to provide employment opportunities to those in our local community,” said Adam Stifel, executive vice president of development.
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. To date, Capital Square has completed approximately $2 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.
Disclaimer: Securities offered through WealthForge Securities, LLC, member FINRA/SIPC. Capital Square and WealthForge are not affiliated. Opportunity Zone Fund Investments involve a high degree of risk. There are risks associated with acquiring, financing, owning, constructing, leasing and operating multi-family real estate located in Richmond, Virginia. Investor Units do not represent a diversified investment because each of the Opportunity Zone Funds’ activities will be limited to the Property. Although Capital Square and its affiliates have extensive experience in acquiring, improving and operating commercial real estate, Opportunity Zone Funds and the Manager were recently organized and do not have an operating history or significant assets. Investors will rely solely on the Manager to manage a particular Fund and the Property; the Manager will have broad discretion to make decisions regarding the Property. There are substantial risks associated with developing the Property in an economically disadvantaged, qualified opportunity zone that permits investors in a Fund to qualify for available Opportunity Zone Tax Benefits. A Fund may not make capital distributions until the sale or refinancing of the Property, if at all. Real estate related investments involve substantial risks. Funds will pay substantial fees to the Manager and its affiliates (including CS Development). The Investor Units will be highly illiquid; transferability of the Investor Units is restricted and withdrawals of capital contributions are prohibited. Substantial actual and potential conflicts of interest exist among the Funds, the Manager, Capital Square, CS Development and their affiliates. An investor could lose all or a substantial portion of his investment in any of the Funds. There are tax risks associated with an investment in the Investor Units, including the possibility that government regulations regarding Opportunity Zone investments may change.
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