Capital Square, a sponsor of tax-advantaged real estate investments, has completed its $48.5 million equity raise for CSRA Opportunity Zone Fund VI LLC after launching in late July 2021.
The project-specific opportunity zone fund raised equity from accredited investors to develop 320 West South Street, a 20-story Class A multifamily tower in the Warehouse District of Raleigh, North Carolina.
Groundbreaking on the $121 million project, led by Capital Square Development, is scheduled to take place in April 2022, with completion anticipated by summer 2024.
The completed project will include a multifamily community with approximately 8,384 square feet of ground-floor retail space, as well as an adjacent, standalone parking structure with 437 spaces. Onsite amenities will include a swimming pool, rooftop lounge, coworking space and fitness center. The apartment mix will consist of studios and one-, two- and three-bedroom units.
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 opportunity zone legislation is complex and, as drafted, had several open tax issues, resulting in slower adoption of the program,” said Louis Rogers, founder and chief executive officer. “The IRS was diligent in issuing key regulations and, with time for tax and financial advisors to learn about the legislation, fundraising for opportunity zone funds began to increase. In fact, funds were raised in record time for CSRA Opportunity Zone Fund VI, a phenomenal ground-up 20-story Class A multifamily development in Raleigh.”
The development is located within the city’s Warehouse District and is within walking distance of several of the area’s attractions, as well as galleries, art studios and dining.
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, Capital Square has completed more than $4.9 billion in transaction volume. The firm’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.
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