RICHMOND, Va., Aug. 19, 2024 /PRNewswire/ -- Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer and manager of multifamily communities, announced today that the Richmond City Council has granted zoning approval to develop an eight-story mixed-use apartment community and luxury hotel in the Scott's Addition designated opportunity zone in Richmond, Virginia.

The development will be funded with proceeds from Capital Square's CSRA Opportunity Zone Fund IX, LLC, a project-specific opportunity zone fund seeking to raise approximately $77 million in equity from accredited investors. Construction is slated to begin in summer 2025.

"Major developments like this require efficient regulatory processes and support from many stakeholders," said Natalie Mason, executive vice president, co-head of development of Capital Square. "We were pleased to achieve zoning approval for this transformative project. We are grateful for the city of Richmond's planning staff, the Planning Commission and city councilmembers for their timely review and approval of the new mixed-use development."

Located at 1600 Roseneath Road at the "main and main" intersection of Scott's Addition, the 2.18-acre property will feature approximately 220 traditional apartment units and 100 furnished luxury hotel rooms. The property is within walking distance of a large concentration of popular breweries, farm-to-table restaurants with award-winning chefs, small businesses, lifestyle amenities and museums, including the Virginia Museum of Fine Arts, Science Museum of Virginia and Virginia Museum of History and Culture. Broad Street, with numerous services and amenities, including a full-service, 47,000-square-foot Whole Foods and a GRTC Pulse rapid transit station, is within blocks of the project.

"We are very pleased with the City Council's approval of this development, which will further accelerate the transformation of Scott's Addition," said Whitson Huffman, co-chief executive officer. "As Capital Square's sixth development in Scott's Addition, this project will fill a large void in the neighborhood, which is in need of hospitality venues to meet the growing demand from visitors to Richmond seeking accommodations near the city's most vibrant neighborhood."

Directly adjacent to the property is The Otis, a 350-unit mixed-use multifamily development that received the 2024 CoStar Impact Award for multifamily development of the year. Located at the intersection of two main thoroughfares in Scott's Addition, The Otis is a six-story, Class A multifamily community that offers a combination of studio, one-, two- and three-bedroom apartment units with bespoke kitchen and bathroom finishes, one-of-a-kind community spaces and approximately 13,000 square feet of retail.

Capital Square also fully subscribed four other opportunity zone funds to develop projects in Scott's Addition, including 352 apartment units at 2950 W. Marshall Road, and Scott's Collection I, II and III – each featuring a single-structure, ground-up development of Class A multifamily communities ranging in size from 60 to 80 units. In total, Capital Square has delivered, or is in the process of developing, over 1,230 multifamily units and 40,000 square feet of retail space within the Scott's Addition opportunity zone.

Capital Square is one of the most active developers of opportunity zone-funded multifamily projects in the country, having invested more than $230 million in equity in the last five years towards the construction of eight developments, totaling over 1,600 residential units and 40,000 square feet of retail. Four developments, totaling 600 units, are located in Scott's Addition and have been delivered and stabilized, having returned over $20 million to date to investors in net proceeds from refinancings.

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 funds are intended to help foster economic growth by providing tax benefits to incentivize private investments in designated opportunity zones.

About Capital Square
Capital Square is a vertically integrated national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). The company is also an active developer and manager of multifamily communities. Since 2012, Capital Square has completed more than $7.8 billion in transaction volume. Capital Square's mixed-used development projects total over 2,000 apartment units with a total development cost in excess of $790 million, and Capital Square Living, the firm's property management division, now manages over 7,000 apartments across multiple states. 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. Recognized by Inc. 5000 as one of the fastest growing companies in the nation for seven consecutive years, Capital Square raises capital, buildings and expectations. Learn more at CapitalSq.com.

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SOURCE Capital Square