RICHMOND, Va., Aug. 19,
2024 /PRNewswire/ -- Capital Square, one of the
nation's leading sponsors of tax-advantaged real estate investments
and an active developer and manager of multifamily communities,
announced today that the Richmond City Council has granted zoning
approval to develop an eight-story mixed-use apartment community
and luxury hotel in the Scott's
Addition designated opportunity zone in Richmond, Virginia.
The development will be funded with proceeds from Capital
Square's CSRA Opportunity Zone Fund IX, LLC, a project-specific
opportunity zone fund seeking to raise approximately $77 million in equity from accredited investors.
Construction is slated to begin in summer 2025.
"Major developments like this require efficient regulatory
processes and support from many stakeholders," said Natalie Mason, executive vice president, co-head
of development of Capital Square. "We were pleased to achieve
zoning approval for this transformative project. We are grateful
for the city of Richmond's
planning staff, the Planning Commission and city councilmembers for
their timely review and approval of the new mixed-use
development."
Located at 1600 Roseneath Road at the "main and main"
intersection of Scott's Addition,
the 2.18-acre property will feature approximately 220 traditional
apartment units and 100 furnished luxury hotel rooms. The property
is within walking distance of a large concentration of popular
breweries, farm-to-table restaurants with award-winning chefs,
small businesses, lifestyle amenities and museums, including the
Virginia Museum of Fine Arts, Science Museum of Virginia and Virginia Museum of History and
Culture. Broad Street, with numerous services and amenities,
including a full-service, 47,000-square-foot Whole Foods and
a GRTC Pulse rapid transit station, is within blocks of the
project.
"We are very pleased with the City Council's approval of this
development, which will further accelerate the transformation of
Scott's Addition," said Whitson
Huffman, co-chief executive officer. "As Capital Square's sixth
development in Scott's Addition,
this project will fill a large void in the neighborhood, which is
in need of hospitality venues to meet the growing demand from
visitors to Richmond seeking
accommodations near the city's most vibrant neighborhood."
Directly adjacent to the property is The Otis, a 350-unit
mixed-use multifamily development that received the 2024 CoStar
Impact Award for multifamily development of the year. Located at
the intersection of two main thoroughfares in Scott's Addition, The Otis is a six-story,
Class A multifamily community that offers a combination of studio,
one-, two- and three-bedroom apartment units with bespoke kitchen
and bathroom finishes, one-of-a-kind community spaces and
approximately 13,000 square feet of retail.
Capital Square also fully subscribed four other opportunity zone
funds to develop projects in Scott's Addition, including 352 apartment
units at 2950 W. Marshall Road, and Scott's Collection I, II and III – each
featuring a single-structure, ground-up development of Class A
multifamily communities ranging in size from 60 to 80 units. In
total, Capital Square has delivered, or is in the process of
developing, over 1,230 multifamily units and 40,000 square feet of
retail space within the Scott's
Addition opportunity zone.
Capital Square is one of the most active developers of
opportunity zone-funded multifamily projects in the country, having
invested more than $230 million in
equity in the last five years towards the construction of eight
developments, totaling over 1,600 residential units and 40,000
square feet of retail. Four developments, totaling 600 units, are
located in Scott's Addition and
have been delivered and stabilized, having returned over
$20 million to date to investors in
net proceeds from refinancings.
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.
About Capital Square
Capital Square is a vertically
integrated 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 and a real estate investment trust (REIT). The company is
also an active developer and manager of multifamily communities.
Since 2012, Capital Square has completed more than $7.8 billion in transaction volume. Capital
Square's mixed-used development projects total over 2,000 apartment
units with a total development cost in excess of $790 million, and Capital Square Living, the
firm's property management division, now manages over 7,000
apartments across multiple states. Capital Square's related
entities provide a range of services – including due diligence,
acquisition, loan sourcing, property/asset management and
disposition – for 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 nation for seven consecutive years, Capital Square raises
capital, buildings and expectations. Learn more at
CapitalSq.com.
Disclaimer: Securities offered through WealthForge Securities,
LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities,
LLC are separate entities. There are material risks associated with
investing in DST properties and real estate securities including
illiquidity, tenant vacancies, general market conditions and
competition, lack of operating history, interest rate risks, the
risk of new supply coming to market and softening rental rates,
general risks of owning/operating commercial and multifamily
properties, short term leases associated with multifamily
properties, financing risks, potential adverse tax consequences,
general economic risks, development risks, long hold periods, and
potential loss of the 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 professional regarding the
specifics of your particular situation. This is not a solicitation
or an offer to see any securities. Please read the Private
Placement Memorandum (PPM) in its entirety, paying careful
attention to the risk section prior to investing. Private
placements are speculative. Diversification does not guarantee
profits or protect against losses. FINRA Broker Check link:
https://brokercheck.finra.org/.
Contact:
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Jill Swartz
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Spotlight Marketing
Communications
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949-427-1389
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jill@spotlightmarcom.com
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SOURCE Capital Square