Capital Square, a sponsor of tax-advantaged real estate investments, has broken ground on 320 West South Street, a mixed-use high-rise apartment tower located in the Warehouse District of Raleigh, North Carolina within a qualified opportunity zone. Construction of the development is expected to be completed by summer 2024.
Development of 320 West South Street will be primarily funded with proceeds from Capital Square’s sixth qualified opportunity zone fund, CSRA Opportunity Zone Fund VI LLC, which raised more than $48 million from accredited investors.
The 20-story high-rise will include 297 apartment homes and more than 10,000 square feet of ground-floor retail space. A resident lobby will lead to approximately 30,000 square feet of amenity space and an attached garage with multiple-floor access will provide parking for residents and their guests.
“We couldn’t be more excited to begin construction on 320 West South Street, a truly elevated property that will transform the surrounding neighborhood, bringing vitality and elegance to downtown Raleigh’s Warehouse District,” said Whit Huffman, chief strategy and investment officer. “This property will provide exceptional amenities for residents, who will enjoy the vibrant social lifestyle provided by the nearby galleries, art studios, restaurants and the city’s largest park.”
The apartment mix will consist of studios and one-, two- and three-bedroom units with onsite amenities that include a swimming pool, rooftop lounge, co-working space and fitness center, among others.
Situated at the intersection of the Boylan Heights neighborhood, Dorothea Dix Park and downtown Raleigh, 320 West South Street is within walking distance of multiple entertainment venues, cultural sites, nightspots, and dining options, as well as the RedHat Amphitheater and Raleigh Convention Center.
The property is within close proximity to The Research Triangle and North Carolina’s educational institutions, including Duke University, the University of North Carolina at Chapel Hill and North Carolina State University.
“Raleigh’s Warehouse District is in the midst of a fundamental transformation from an industrial area to a vibrant and exciting urban center,” explained Adam Stifel, chief development officer. “320 West South Street will provide residents uncanny views of the downtown Raleigh skyline and Red Hat Amphitheater.”
Capital Square has partnered with JDAVIS Architects as building architect, W. M. Jordan Company as general contractor, and York Properties as the retail leasing agent for the property. The design team also includes Architecture Firm as interiors designer and EDSA as landscape designer.
Capital Square recently launched its seventh opportunity zone fund, CSRA Opportunity Zone Fund VII LLC, to develop a multifamily development in the Scott’s Addition neighborhood of Richmond, Virginia. To date, Capital Square’s opportunity zone funds have initiated projects with a development cost of more than $330 million.
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.
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. In recent years the company has become a 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 $5.8 billion in transaction volume.
The firm’s related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for high-net-worth investors, private equity firms, family offices and institutional investors.