Skip to content

Capital Square Fully Subscribes Seventh OZ Fund in Richmond, Va., Raising $65 Million

By Mari Nicholson

Capital Square Fully Subscribes Seventh OZ Fund in Richmond, Va., Raising $65 Million

Capital Square, a sponsor of tax-advantaged real estate investments and an active developer and manager of housing communities, announced that its offering, CSRA Opportunity Zone Fund VII, LLC, has been fully subscribed. The offering, which raised nearly $65 million from accredited investors, is comprised of a 352-unit, multifamily community development in Richmond, Va.’s Scott’s Addition qualified opportunity zone.

“The development team at Capital Square has done a phenomenal job of finding desirable sites, planning exceptional communities, building on budget and on time and delivering the very best-in-class projects in the region,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Fund VII is another big win for Capital Square’s investors, residents, and the Richmond community.”

Located in the heart of Scott’s Addition, Richmond’s premier dining and entertainment neighborhood, the community will include three six- and seven-story multifamily buildings above podium parking with over 5,350 square feet of ground-level retail space. Units will average 845 square feet with premium finishes and appliances including quartz countertops, tile back splashes and luxury vinyl tile throughout. Community amenities will include a resort-style pool, fitness center, co-working space, dog wash station, resident lounges, lush courtyards and a rooftop terrace, among others. The development is slated for delivery in summer 2025.

In August 2024, Capital Square launched CSRA Opportunity Zone Fund IX, LLC, to fund the development of a mixed-use apartment community and luxury hotel in Scott’s Addition.

Capital Square has been the most active developer within the Scott’s Addition neighborhood since 2020, having completed four Class A multifamily communities: INK at Scott’s Collection, VIV at Scott’s Collection, GEM at Scott’s Collection, and Otis, all within walking distance of one another. In total, Capital Square will have delivered more than 900 Class A apartment homes to the community upon completion of the CSRA Opportunity Zone Fund VII project for a total development cost exceeding $270 million.

“With occupancy and rental rates on the rise, Scott’s Addition makes for an ideal investment market to continue Capital Square’s mission of providing high-quality multifamily housing options for investors and residents alike,” said Whitson Huffman, co-chief executive officer. “The completion of this opportunity zone investment demonstrates once again Capital Square’s ability to deliver best-in-class projects that appeal to value-conscious investors.”

According to an economic impact study recently completed by FTI Consulting, Capital Square’s Scott’s Addition-focused opportunity zone developments have generated significant economic and fiscal impacts, including the creation of approximately 1,500 construction jobs and 63 permanent full-time jobs. In turn, the developments have generated $9.7 million in annual state and local tax revenue during their construction phases and are projected to deliver $7.7 million in annual state and local tax revenues during their operational phases.

Established in 1901, Scott’s Addition is a historic area that is now the city of Richmond’s fastest growing neighborhood, according to the Greater Scott’s Addition Association. The area is known for its food, drink and entertainment amenities, including 13 breweries and the like within a walkable, seven block area. The area caters to a growing number of millennial residents and empty nesters. Scott’s Addition’s submarket is one of the highest performing submarkets in Richmond, with an expected rent growth of more than 4% over the next five years, according to CoStar.

Since its founding in 2012, Capital Square has acquired 170 real estate assets for over 6,500 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation, along with opportunity zone funds and a real estate investment trust that acquires rental housing in the Southeast and Texas. Capital Square’s opportunity zone funds have initiated almost $800 million in development value to-date.

Capital Square is a 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. In recent years the company has become an active developer of mixed-use, multifamily properties in the southeastern United States. Since 2012, Capital Square has completed more than $7.9 billion in transaction volume.

For more Capital Square news, please visit their directory page.