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Capital Square Reaches Construction Milestone on Charleston OZ Development

Capital Square Reaches Construction Milestone on Charleston OZ Development. 1031, 1031 Exchange, acquisition, alternative investments, Capital Square, Delaware statutory trust, DST, opportunity zone, private placement, real estate, real estate assets, real estate investment, Reg D, Regulation D
Capital Square Reaches Construction Milestone on Charleston OZ Development. 1031, 1031 Exchange, acquisition, alternative investments, Capital Square, Delaware statutory trust, DST, opportunity zone, private placement, real estate, real estate assets, real estate investment, Reg D, Regulation D

Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer and manager of housing communities, and Method Co., a real estate development, design and management company, announced the topping out of their new project, a 50-unit boutique hotel at 529 King Street in downtown Charleston. The project is expected to be completed by summer 2024.

The development was partially funded with proceeds from Capital Square’s fourth qualified opportunity zone fund, CSRA Opportunity Zone Fund IV LLC, which raised approximately $7.7 million from accredited investors.

“Capital Square focuses on development opportunities in growing Southeastern markets, including Charleston, Raleigh, Knoxville and Richmond,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Charleston is a supply-constrained market with a shortage of hotel rooms and extended-stay options, resulting in strong demand for an apartment hotel product.”

529 King Street is a five-story project featuring a mix of studio, one-, two- and three-bedroom units. The development totals approximately 52,700 square feet with 32,000 net rentable square feet of hotel and retail space. The project features a lush interior courtyard and a rooftop lounge that will be open to the public. The facade offers a modern interpretation of the historic Victorian-era aesthetic that’s prevalent in Charleston.

The company says community amenities will include 44 valet-operated parking spaces; a lush, private interior courtyard that will function as an open-air living room; a library and coworking space; a guest-only lounge; a semi-private terrace or balcony; and a publicly accessible rooftop lounge offering food, beverages, and views of downtown Charleston and the harbor.

“Topping out is a significant milestone in any property development, and particularly so in the current economic environment, where financing and construction costs pose significant challenges,” said Whit Huffman, co-chief executive officer. “Despite these challenges, the Capital Square team is succeeding in the development of 529 King Street. We look forward to delivering this premier extended-stay property to the residents of Charleston and its many visitors.”

Close proximity to Highway 17 and the Arthur Ravenel Jr. Bridge provides access to Greater Charleston.

Capital Square’s opportunity zone funds have initiated in excess of $590 million in development value to-date.

Capital Square says it partnered with Morris Adjmi Architects and LS3P as building architect, BL Harbert as general contractor and Method Co. as the co-developer and operator of the project.

Since its founding in 2012, Capital Square has reportedly raised more than $3 billion in equity from investors for its various real estate investment offerings, primarily Delaware statutory trust offerings employed to facilitate tax-advantaged 1031 exchanges and qualified opportunity zone funds.

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