Capital Square, a sponsor of tax-advantaged real estate investments, 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.”
He added, “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 an urban residential and retail destination.
Rogers noted that Scott’s Collection will bring more than $50 million in revitalization to the surrounding area.
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, the property will include a 3,700-square-foot, elevated courtyard and 65-70 onsite parking spaces.
In other Capital Square news, the firm recently hired Marc Slavny as executive vice president of capital markets and director of due diligence.
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 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.