The development division of Capital Square, a sponsor of tax-advantaged real estate investment offerings, and its construction partners broke ground on Scott’s Collection II, a 60-unit, mixed-use multifamily development in the Scott’s Addition qualified opportunity zone in Richmond, Virginia.
Located at 2900 – 2904 West Clay Street, Scott’s Collection II is a single-structure, ground-up development that will include a five-story, Class A multifamily community with 60 units, private unit balconies and a lobby area. Situated on 0.4 acres of land, Scott’s Collection II will include a wood-framed building situated above a concrete podium and 50-55 onsite parking spaces.
“This is the second building in our ‘Scott’s Collection’ portfolio,” said Adam Stifel, executive vice president of development. “We are very proud to have moved forward as planned, having locked in construction pricing and closed on financing in the midst of a pandemic. It really speaks to the strength of this submarket and the commitment of our team to work through adversity.”
Scott’s Collection II is the second in a group of three developments that will make up “Scott’s Collection” in Scott’s Addition. The development of Scott’s Collection II is the direct result of CSRA Opportunity Zone Fund II LLC, a project-specific opportunity zone fund launched by Capital Square in December 2019.
Assisting in the development of Scott’s Collection II are 510 Architects, the architecture firm; Greystar Property Management; Fulton Bank, which provided the construction loan financing; and Urban Core Construction, the construction company for the ground-up development.
Established in 1901, Scott’s Addition is a historic area of Richmond, located within a designated opportunity zone. 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 and qualified opportunity zone funds for tax deferral and exclusion. Since 2012, the firm has completed more than $2.6 billion in transaction volume.