Capital Square, a sponsor of tax-advantaged real estate investments and property developer, achieved lease up on the 80-unit INK in Richmond, Virginia. The property, located in a qualified opportunity zone within Richmond’s Scott’s Addition neighborhood, achieved 97% occupancy a little more than four months after opening its doors to residents.
INK is the first of three projects in Capital Square’s Scott’s Collection development, consisting of a group of boutique multifamily properties. Construction on INK began in the second quarter of 2020, with completion in February 2022. Located at 3000-3008 Clay Street, the five-story INK offers one- and two-bedroom units, private balconies, a pool courtyard, outdoor lounge with fire pit and grill stations, and 1,939 square feet of ground-level retail space.
“The quick lease-up of this property has exceeded our expectations but is not surprising given the exceptional quality we’ve delivered with INK to the increasingly popular Scott’s Addition neighborhood,” said Whit Huffman, chief strategy and investment officer. “Demand for quality housing in this emerging part of Richmond is very high, and Capital Square is working hard to help satisfy that demand with this project, as well as the four other multifamily properties we have in various stages of development throughout the neighborhood.”
In total, Capital Square currently has four multifamily developments under construction in the Scott’s Addition neighborhood that have delivered or will deliver 559 luxury apartment homes by 2023, with another 350 units planned for the neighborhood.
INK’s development was primarily funded with proceeds from Capital Square’s first qualified opportunity zone fund, CSRA Opportunity Zone Fund I, LLC. Capital Square has subsequently launched a total of seven qualified opportunity zone funds, including the recently announced CSRA Opportunity Zone Fund VII, LLC, which seeks to raise $41.4 million from accredited investors to fund the development of an additional luxury multifamily development in the Scott’s Addition neighborhood.
Capital Square specializes 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. In recent years the company has become an active developer of multifamily properties in the southeastern US, with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, the firm has completed more than $5.6 billion in transaction volume.