Capital Square, an investment sponsor specializing in tax-advantaged real estate investments, has launched CSRA Opportunity Zone Fund VII LLC, a project-specific opportunity zone fund that plans to develop approximately 350 apartment units in the Scott’s Addition neighborhood of Richmond, Virginia.
CSRA Opportunity Zone Fund VII seeks to raise $41.4 million in equity from accredited investors. This is Capital Square’s seventh opportunity zone fund and fifth apartment community being developed in Richmond.
The community will include three five- and six-story residential buildings above podium parking. Construction is slated to begin in the first quarter of 2023, and the finished project will include retail amenities, the company said.
“Capital Square’s development team is on track and on budget in the development of five Class A apartment communities in Richmond and Raleigh, North Carolina, in spite of a global pandemic that has put many developers on the sidelines,” said Louis Rogers, founder and chief executive officer.
Located in a qualified opportunity zone, Scott’s Addition is a historic neighborhood in Richmond that is known for its walkability and food, drink and entertainment establishments.
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.
“The continued growth of Scott’s Addition makes it a great place to develop,” said Whitson Huffman, chief strategy and investment officer. “The area is the second-highest performing market in Richmond, with an approximate 97.8 percent occupancy for multifamily units. Our team is excited to begin our fifth multifamily development in Scott’s Addition. Capital Square is building the future of Richmond.”
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, an apartment real estate investment trust, and development funds. Since 2012, the firm has completed more than $5.6 billion in transaction volume. Its 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.
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