RICHMOND, Va. (Oct. 6, 2020) – Capital Square, a leading sponsor of tax-advantaged real estate investments, announced today that the firm has secured a loan from Fulton Bank, N.A. to construct Scott’s Collection II, a mixed-use multifamily property in the Scott’s Addition designated opportunity zone in Richmond, Virginia.
CSRA Opportunity Zone Fund II, LLC, a project-specific opportunity zone fund launched by Capital Square in December 2019, raised equity to begin the development of Scott’s Collection II. This follows CSRA Opportunity Zone Fund I, LLC, a project-specific opportunity zone fund also launched by Capital Square to develop Scott’s Collection I, a similar property in Scott’s Addition.
“We are pleased that Fulton Bank is providing construction financing for this important opportunity zone development that will create substantial new jobs and economic activity in Scott’s Addition as intended by Congress in providing tax benefits for qualified opportunity zone investments,” said Louis Rogers, founder and chief executive officer of Capital Square.
Part of a collection of three mixed-use multifamily properties, Scott’s Collection II is Capital Square’s second development project and part of the transformation of Scott’s Addition from an industrial part of Greater Richmond into a thriving modern, urban residential and retail destination. Scott’s Collection is expected to bring more than $50 million in revitalization and substantial new employment to the area.
Located at 2900 – 2904 West Clay St., Scott’s Collection II is a single-structure, ground-up development that will include a five-story, Class A multifamily community comprised of 60 units with private balconies. Scott’s Collection II will feature a wood-framed building above a concrete podium, 40 – 45 onsite parking spaces, courtyard with a kitchen, work space and approximately 2,100 square feet of ground-floor space.
Also, near the Scott’s Collection trio of developments is CSRA/GS Opportunity Zone V, LLC, a project-specific opportunity zone fund raising capital to develop a 350-unit multifamily community with ground-floor retail space at 1601 Roseneath Road. Located at the intersection of two main thoroughfares in Scott’s Addition, 1601 Roseneath Road will be a six-story, Class A multifamily community with 15,000 square feet of retail space. The 2.28-acre property will have 380 onsite parking spaces.
Capital Square was represented by Jamie Butler at Walker & Dunlop in securing the construction loan for the Scott’s Collection II development from Jacob Davis of Fulton Bank, a subsidiary of Fulton Financial Corporation, a $24.6 billion financial holding company headquartered in Lancaster, Pennsylvania.
“We are excited to begin construction on the second phase of the Scott’s Collection project,” said Adam Stifel, executive vice president of development. “The closing of the construction loan is an important milestone in the development process and we want to thank the Walker & Dunlop and Fulton Bank teams for their work in this successful closing.”
About Capital Square
Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. To date, Capital Square has completed more than $2.2 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. Its founder, Louis Rogers, has structured hundreds of investment offerings totaling in excess of $5 billion. 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. Since 2017, Capital Square has been awarded by Inc. 5000 as one of the fastest growing companies, for four consecutive years. In 2017 and 2018, the company was also ranked on Richmond BizSense’s list of fastest growing companies. In 2019, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” and “Fantastic 50” reports. To learn more, visit www.CapitalSquare1031.com.
Disclaimer: Securities offered through WealthForge Securities, LLC, member FINRA/SIPC. Capital Square and WealthForge are not affiliated. Opportunity Zone Fund Investments involve a high degree of risk. There are risks associated with acquiring, financing, owning, constructing, leasing and operating multi-family real estate located in Richmond, Virginia. Investor Units do not represent a diversified investment because each of the Opportunity Zone Funds’ activities will be limited to the Property. Although Capital Square and its affiliates have extensive experience in acquiring, improving and operating commercial real estate, Opportunity Zone Funds and the Manager were recently organized and do not have an operating history or significant assets. Investors will rely solely on the Manager to manage a particular Fund and the Property; the Manager will have broad discretion to make decisions regarding the Property. There are substantial risks associated with developing the Property in an economically disadvantaged, qualified opportunity zone that permits investors in a Fund to qualify for available Opportunity Zone Tax Benefits. A Fund may not make capital distributions until the sale or refinancing of the Property, if at all. Real estate related investments involve substantial risks. Funds will pay substantial fees to the Manager and its affiliates (including CS Development). The Investor Units will be highly illiquid; transferability of the Investor Units is restricted and withdrawals of capital contributions are prohibited. Substantial actual and potential conflicts of interest exist among the Funds, the Manager, Capital Square, CS Development and their affiliates. An investor could lose all or a substantial portion of his investment in any of the Funds. There are tax risks associated with an investment in the Investor Units, including the possibility that government regulations regarding Opportunity Zone investments may change.