RICHMOND, Va. (July 17, 2019) – Capital Square, a leading sponsor of tax-advantaged real estate investments, announced today the launch of CSRA Opportunity Zone Fund I, LLC, a project-specific opportunity zone fund. The fund’s focus is to develop Scott’s Collection I, a multifamily property in the Scott’s Addition designated opportunity zone in Richmond, Virginia.
“We are excited to announce the launch of our first opportunity zone fund,” said Louis Rogers, founder and chief executive officer. “With it, we broaden our scope of tax-advantaged investment options for investors seeking a reduction or permanent elimination of taxes on capital gains from their investment in the fund. The fund will promote economic growth in our home city, with the development of a Class A multifamily community in the Scott’s Addition neighborhood.”
Located at 3000 – 3008 West Clay St., Scott’s Collection I is a single-structure, ground-up development that will include:
- a five-story, Class A multifamily community with 80 units,
- private unit balconies and lobby area,
- elevated courtyard, and
- 65-70 on-site parking spaces.
Established in 1901, Scott’s Addition is a historic area that is now the City of Richmond’s fastest growing neighborhood and the second-highest performing market with 97.6 percent occupancy, according to Yardi Matrix. Scott’s Addition is a designated opportunity zone with a census tract that stretches across Virginia Commonwealth University and the Carver neighborhood. Scott’s Addition’s apartment rental rates have increased 8.1 percent on a year-over-year basis and are projected to increase three to four percent per year for five years.
“We are thrilled to launch our first opportunity zone fund with a project so close to home,” said Adam Stifel, executive vice president of development. “An appealing food scene, incredible breweries, co-working and fitness options already thrive in Scott’s Addition, while the demand for apartments continues to outpace supply. We are excited to bring something truly new to the market through progressive, contemporary design that recognizes the industrial roots of the neighborhood. This is simply great real estate, with the potential of investors returns being enhanced by the opportunity zone tax benefits.”
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 fund investments seek to help foster economic growth in distressed areas by providing tax benefits to incentivize private investments in designated opportunity zones.
About Capital Square
Capital Square is a national investment sponsor specializing in tax-advantaged real estate offerings, including Delaware statutory trusts and qualified opportunity zone funds. Capital Square has completed over $1.3 billion in transaction volume. Capital Square’s executive team has decades of experience 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. In both 2017 and 2018, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. In the same years, 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.
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