Capital Square Realty Advisors, LLC, a sponsor of tax-advantaged real estate investments, has launched CSRA/GS Opportunity Zone V LLC, a project-specific opportunity zone fund.
The fund seeks to raise nearly $32.4 million in equity from accredited investors to develop 1601 Roseneath Road, a 350-unit multifamily community with ground-floor retail space, in the Scott’s Addition designated opportunity zone in Richmond, Virginia.
“Capital Square is thrilled to enter this joint venture with Greystar Real Estate Partners to develop a Class A, mixed-use multifamily community in Scott’s Addition,” said Louis Rogers, founder and chief executive officer. “Greystar is the largest property manager in the nation as well as a top 10 builder and owner of apartment communities.”
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.
Established in 1901, Scott’s Addition is a historic area that is now Richmond’s fastest growing neighborhood and the second-highest performing market with 97.6 percent occupancy, according to Yardi Matrix. Apartment rental rates in the neighborhood have increased 8.1 percent on a year-over-year basis and are projected to increase 3 to 4 percent per year for five years.
1601 Roseneath Road is Capital Square’s fourth new project in the Scott’s Addition designated opportunity zone. Previously, Capital Square launched three 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. 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. Capital Square has completed approximately $1.9 billion in transaction volume, and its related entities provide due diligence, acquisition, loan sourcing, property/asset management, and disposition, for high net worth investors, private equity firms, family offices and institutional investors.