RICHMOND, Virginia., 24 June 2024 /PRNewswire/ — Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer and manager of residential communities, today announced the launch of CSRA Opportunity Zone Fund IX, LLC. The project-specific Opportunity Zone Fund will provide capital for the development of a mixed-use apartment community of approximately 320 residential units and a luxury hotel in the Scott’s Additionally designated opportunity zone in Richmond, VirginiaThe CSRA Opportunity Zone Fund IX seeks to raise 77 million US dollars in equity from accredited investors.
Capital Square is one of the most active developers of Opportunity Zone-financed multifamily housing projects in the country and has over 230 million US dollars has invested in the construction of eight projects with a total of over 1,600 residential units and 40,000 square meters of retail space over the last five years. Four projects with a total of 600 units are located in Scott’s Addition and have delivered and stabilized, returned over 20 million US dollars paid out to investors as net proceeds from refinancing.
“This is Capital Square’s ninth Opportunity Zone fund. In each case, Capital Square has purchased property in an Opportunity Zone that is eligible for tax benefits,” said Louis RogersFounder and Co-CEO of Capital Square. “Next, the company will develop a Class A building using the proceeds from each fund and a construction loan. Then the company will complete construction and lease the building until stabilized. The final step is to complete permanent financing with excess proceeds used to provide a special distribution (tax free) to investors prior to their tax due date. This high level of performance is a powerful testament to the strength of Capital Square’s development team, which has delivered on time and on budget despite the pandemic, labor and material shortages, and ongoing inflation.”
The hotel is located at 1600 Roseneath Road at the main and main intersection of Scott’s In addition, the 2.18-acre property will include approximately 220 traditional residential units and 100 furnished luxury apartment hotel rooms. The property is within walking distance to a large number of popular breweries, farm-to-table restaurants with award-winning chefs, small businesses, lifestyle amenities and museums, including the Virginia Museum of Fine Arts, the Science Museum of Virginia and the Virginia Museum of History and Culture. A full-service Whole Foods store with 45,000 square feet of retail space is less than five minutes from the project, and Broad Street, with numerous services and amenities including a GRTC Pulse rapid transit station, is just blocks from the project.
“After successfully implementing our previous developments and even exceeding expectations, we are ready to once again deliver a first-class product to a significantly underserved market. Scott’s addition,” said Whitson Huffman, Co-CEO. “The pace of leasing and lease renewals in our newly completed buildings shows us that more units are in demand and the hotel portion is the only overnight option in all Scott’s Addition. We look forward to building on our success to date and raising the bar in Richmond.”
This is Capital Square’s sixth development in Richmond exhilarated Scott’s Additional neighborhood. Previously, Capital Square fully underwrote CSRA/GS Opportunity Zone V, LLC to finance the development of The Otis, a 350-unit multifamily residential development with ground-floor retail space, and CSRA Opportunity Zone Fund VII, LLC to finance the development of 352 residential units at 2950 W. Marshall Road. Previously, Capital Square launched three developments – Scott’s Collection I, II and III – each of which comprises a single-story, ground-up, Class A multifamily community ranging in size from 60 to 80 units. In total, Capital Square has built or is in the process of developing over 1,230 multifamily units and 40,000 square feet of retail space within the development. Scott’s Additional opportunity zone.
According to a 2023 economic impact study conducted by FTI Consulting Scott’s The expansion-focused developments in the Opportunity Zones have had a significant economic and financial impact, including the creation of approximately 1,500 construction jobs and 63 permanent full-time jobs. In turn, the developments have 9.7 million US dollars in annual state and local tax revenues during the construction phase and are expected to 7.7 million US dollars in annual state and local tax revenues during their operating phase.
Founded in 1901, Scott’s Addition is a historic area that is now the city Richmond fastest growing neighborhood, according to the Scott’s Addition Boulevard Association. Once a center for trade and manufacturing, Scott’s The Addition and Historic District have become the region’s most popular entertainment district and are known for their dining and entertainment options, including 13 breweries, cider and mead distilleries, and distilleries. The 20-block district offers excellent access to Interstate 95, I-64, I-195, Powhite Parkway, and downtown. Richmondand is only 10 minutes from the 600-acre James River Park System.
Opportunity Zones were created to stimulate long-term private investment in low-income urban and rural communities across the country. Designed as part of the Tax Cuts and Jobs Act of 2017, Opportunity Zone funds are intended to promote economic growth by providing tax benefits to encourage private investment in designated Opportunity Zones.
About Capital Square
Capital Square is a vertically integrated national real estate company specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified Opportunity Zone funds for tax deferral and exemption, and a Real Estate Investment Trust (REIT). The company is also an active developer and manager of multifamily properties. Since 2012, Capital Square has completed more than 7.8 billion US dollars in transaction volume. Capital Square’s mixed-use development projects comprise a total of over 2,000 residential units with total development costs of over 790 million US dollarsand Capital Square Living, the company’s property management division, now manages over 7,000 homes in multiple states. Capital Square’s affiliates provide a range of services – including due diligence, acquisition, loan origination, property/asset management and disposition – to a growing number of high net worth investors, private equity firms, family offices and institutional investors. Recognized by Inc. 5000 as one of the fastest growing companies in the country for seven consecutive years, Capital Square raises capital, buildings and expectations. For more information, visit CapitalSq.com.
Disclaimer: Securities are offered through WealthForge Securities, LLC, member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate companies. There are significant risks associated with investing in DST real estate and real estate securities, including illiquidity, tenant vacancy, general market conditions and competition, lack of operating history, interest rate risks, risk that new supply will enter the market and rental rates will decline, general risks of owning/operating commercial and multifamily real estate, short-term leases associated with multifamily real estate, financing risks, possible adverse tax consequences, general economic risks, development risks, long holding periods and potential loss of entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax advisor regarding the details of your particular situation. This is not a solicitation or offer to see securities. Please read the Private Placement Memorandum (PPM) in its entirety and pay careful attention to the risks section before investing. Private placements are speculative. Diversification does not guarantee a profit or protect against a loss. Link to FINRA Broker Check: https://brokercheck.finra.org/.
SOURCE: Capital Square
