Capital Square, a sponsor of tax-advantaged real estate investments, and real estate company Greystar, have purchased nearly 2.3 acres of land in Richmond, Virginia’s Scott’s Addition opportunity zone. The land will be used to develop 1601 Roseneath Road, a 350-unit multifamily property with ground-floor retail space.
Located at the intersection of two main thoroughfares in Scott’s Addition, 1601 Roseneath Road will be a six-story, Class A multifamily community with 15,000 square feet of retail space. The 2.3-acre property will have 380 onsite parking spaces.
Capital for the development is being raised through CSRA/GS Opportunity Zone V LLC, a $32.4 million project-specific opportunity zone fund that is open to accredited investors.
The project is being developed by Capital Square and Greystar, which manages and operates an estimated $160 billion+ of real estate in nearly 200 markets globally. The firm is the largest operator of apartments in the United States, managing more than 713,000 units/beds, and has an institutional investment management platform with approximately $37.2 billion of assets under management, including nearly $16 billion of assets under development.
“Richmond has evolved as one of the most compelling real estate markets in the Mid-Atlantic, and Scott’s Addition has become a huge part of the city’s soul,” said John Clarkson, managing director of Greystar’s Mid-Atlantic development division.
1601 Roseneath Road is Capital Square’s fourth project in the Scott’s Addition designated opportunity zone. Previously, Capital Square launched a trio of developments – Scott’s Collection I, II and III – within a few blocks of the 1601 Roseneath Road project.
The Scott’s Collection projects each include a single-structure, ground-up development with Class A multifamily communities ranging in size from 60 to 80 units, and will include private unit balconies, a lobby area and onsite parking.
Opportunity zones were created by Congress to stimulate long-term private investments in low-income urban and rural communities, along with certain contiguous areas.
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. Since 2012, Capital Square has completed more than $2.5 billion in transaction volume.
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