Capital Square Tops Out Fifth OZ Development in Popular Richmond Neighborhood
Capital Square, a sponsor of tax-advantaged real estate investments, announced the topping out of Chasen – a 352-unit, multifamily community development in Richmond, Va.’s Scott’s Addition qualified opportunity zone. The development, funded by equity raised by CSRA Opportunity Zone Fund VII, LLC, broke ground in April 2023 and is the fifth opportunity zone development the company has topped out in Scott’s Addition during the past four years.
The Chasen is the company’s second qualified opportunity zone project to top out in the fourth quarter. Livano Knoxville, a 348-unit multifamily community development located within a qualified opportunity zone broke ground in June 2023, topped out earlier this month, and anticipates first move-ins in spring 2025.
Since 2012, Capital Square has completed more than $7.9 billion in transaction volume.
“Capital Square would like to thank the many investors and financial advisers across the nation who had the foresight to invest in Capital Square’s fifth opportunity zone fund in Scott’s Addition,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “By investing in this manner, investors are able to defer and exclude capital gains from the sale of any asset. The tax benefits incentivize investors to fund new developments that generate meaningful economic activity, new jobs, and tax revenue for localities. This is a win-win for all the parties.”
Upon completion, the community will include a trio of six- and seven-story adjoining multifamily buildings above podium parking comprised of studio, one-, two-, and three-bedroom apartments with over 5,350 square feet of ground-level retail space. Units will average 845 square feet in size with premium finishes and appliances including quartz countertops, tile backsplashes, and vinyl plank flooring throughout. Resident move-ins are anticipated to begin at the property, located at 2929 W. Clay St., 2922 W. Marshall St., and 2925 W. Marshall St., in summer 2025.
Community amenities will include a pool, lounge and golf simulator, fitness club, co-working lounge with private offices, pet spa, bike storage and repair, and a rooftop lounge. Residents will be within walking distance of arts, cultural and lifestyle amenities in Scott’s Addition neighborhood, which contains over 51 retail, dining, and entertainment venues.
Established in 1901 and once a hub for industrial buildings, the Scott’s Addition area is a designated opportunity zone with a census tract that stretches across Virginia Commonwealth University and the Carver neighborhood.
“The current economic environment has posed significant challenges to financing and construction costs for developments nationwide, which makes this topping out not only a milestone for the project but a testament to the hard work and collaboration of every individual involved,” said Whitson Huffman, co-CEO.
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.
Development of Chasen is funded with proceeds from CSRA Opportunity Zone Fund VII, LLC. 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 as of April 2023. 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 as of April 2023.
Overall, Capital Square’s nine opportunity zone funds have initiated in excess of $870 million in gross asset value to-date. In June 2024, Capital Square launched CSRA Opportunity Zone Fund IX, LLC to fund the development of its sixth mixed-use apartment community and luxury hotel in Scott’s Addition. The fund seeks to raise $77 million in equity.
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