December 16, 2019
Capital Square, a sponsor of tax-advantaged real estate investments, has launched CSRA Opportunity Zone Fund IV LLC. The project-specific opportunity zone fund is raising capital to develop 529 King Street, a 50-unit, apartment hotel and retail property within a designated opportunity zone in Charleston, South Carolina’s historic King Street corridor.
The fund seeks to raise approximately $7.7 million in equity from accredited investors and has a minimum investment of 100 investor units or $100,000.
The 529 King Street development will include a five-story structure with 50 luxury apartment hotel units, 4,200 square feet of street-front retail space, 44 valet-operated parking spaces, a courtyard, and a rooftop lounge that will be open to the public. The property will also include a fitness center, library and co-working space on each floor.
The project will be co-developed with the Method Company, a development, management, hospitality and design firm, and the finished property will operate under Method’s ROOST Apartment Hotel brand.
The façade of 529 King Street will be a modern interpretation of the historic Victorian-era aesthetic that is prevalent in Charleston, the company said. The project is located within blocks of the College of Charleston, MUSC Health Medical Center, Marion Square and the South Carolina Aquarium, as well as restaurants and bars on the peninsula. More than 300 years old, King Street is a mixed-use corridor that is predominantly made up of shopping and retail amenities.
“The 529 King Street project will fill the demand for longer duration stays in Charleston, which is one of the top-tourist destinations in the world and boasts major employment opportunities in the healthcare, logistics, energy and aerospace industries,” said Adam Stifel, executive vice president of development with Capital Square.
Opportunity zones were created to stimulate long-term private investments in certain low-income distressed urban and rural communities. 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 these areas.
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