July 17, 2019
Capital Square, a sponsor of tax-advantaged real estate investments, has launched CSRA Opportunity Zone Fund I LLC, a project-specific opportunity zone fund. The fund’s focus is to develop Scott’s Collection I, a Class 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.”
Scott’s Collection is a single-structure, ground-up development that will include a five-story multifamily community with 80 units with private unit balconies, a lobby area, 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. Capital Square noted that the area’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.
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.
Capital Square recently launched its opportunity zone platform and hired Adam Stifel and Jake Baum to lead its opportunity zone developments.
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