February 24, 2020
Plans are underway for one of the largest apartment complexes to be built in the Scott’s Addition neighborhood.
The 350-unit apartment building would take up most of a city block bounded by Roseneath Road, Mactavish Avenue and West Moore and Norfolk streets.
The six-story building would be across Roseneath Road from The Dairy Bar restaurant and across Moore Street from Väsen Brewing Co. and Stella’s Grocery gourmet market.
Plans for the unnamed development also call for 15,000 square feet of street-level retail space along with 380 parking spaces.
The project is being developed by a unit of Capital Square 1031, a Henrico County-based real estate investment and management company, and Greystar Real Estate Partners LLC of Charleston, S.C., which invests, develops and manages rental housing across the world.
“This will be a great addition to the neighborhood,” said Whitson A. Huffman, Capital Square’s senior vice president and head of acquisitions.
Construction would begin later this year or early 2021 and take about two years to complete, he said. The developers have filed a plan of development with the city, Huffman said.
The 2.28-acre property is under contract to be purchased, and that acquisition should be completed later this year, he said. The property is assessed for $2.75 million, according to the city’s online property records.
Part of the building was used by online grocer Relay Foods as its warehouse and fulfillment center until early 2017.
The total cost of the Roseneath project is still being finalized, Huffman said.
To pay for some of it, Capital Square Realty Advisors LLC plans to raise $32.4 million in equity under a federal tax-incentive program for investors. The company’s CSRA/GS Opportunity Zone V will begin a solicitation starting Monday from accredited investors.
Capital Square is developing three other apartment buildings in Scott’s Addition with a total of about 210 units and raising some of the money to pay for those projects under the same federal opportunity zones program.
That program, created as part of the federal tax overhaul in 2017, rewards investors with tax breaks for putting money earned from other investments back into businesses or real estate projects in more than 8,700 census tracts around the nation.
In the Richmond region, opportunity zones include census tracts covering land between Broad Street and Interstate 95 stretching from Scott’s Addition to VCU Medical Center.
“We love the Scott’s Addition neighborhood with all the buzz that’s going on there,” Huffman said.
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