February 26, 2020
A $32.4 million, 350-unit apartment complex will be built in the Scott’s Addition neighborhood in Richmond, Glen Allen-based real estate investment group Capital Square 1031 announced Tuesday.
The project will be developed by CSRA/GS Opportunity Zone V LLC at 1601 Roseneath Road, which is a designated opportunity zone in the city — and the fourth new opportunity zone project in Scott’s Addition. CSRA/GS Opportunity Zone V LLC will need to raise the $32.4 million for the project from accredited investors. Opportunity zone funds are used for economic development via tax incentives in low-income urban and rural communities.
Sitting on 2.28 acres, the mixed-use development will be a six-story multifamily community with 15,000 square feet of retail space. There will also be 380 onsite parking spaces adjacent to the building development.
“Vendors have not yet been selected [for the retail space],” says Capital Square spokesperson Lauren Burgos. “The development team is seeking restaurants, dry goods, fitness and market-type retailers to fill the spaces. It’s a wonderful opportunity for businesses to have street-front space in a ‘Main and Main’ location.”
The project will be codeveloped by Capital Square and Charleston, South Carolina-based real estate company Greystar Real Estate Partners. Capital Square has previously developed the Scott’s Collection I, II and III apartment communities in Scott’s Addition, which range from 60 to 80 units.
“The Richmond market possesses substantial growth opportunity and will continue to be an important part of our long-term development strategy in the mid-Atlantic,” John Clarkson, Greystar’s managing director of development for the mid-Atlantic region, said in a statement. “Capital Square has a strong track record of successful project execution in Scott’s Addition, and together with the expertise of our local team of professionals, we look forward to providing future residents with attractive amenities at this Class A property.”
Expected to break ground during the last quarter of 2020 or the first quarter of 2021, the project will take approximately two years to complete, Burgos says.
Apartment rental rates in the Scott’s Addition neighborhood have increased 8.1% on a year-over-year basis. It’s expected that the rates will grow 3% to 4% each year during the next five years.