The development division of Capital Square, a leading sponsor of tax-advantaged real estate investments, and its construction partners broke ground on Scott's Collection II, a 60-unit, mixed-use multifamily development in the Scott's Addition qualified opportunity zone in Richmond, Virginia.
"Capital Square's management team could have panicked when the pandemic hit, but, instead, we redoubled our commitment to the firm and our investors," said Louis Rogers, founder and chief executive officer of Capital Square. "In spite of the pandemic, Capital Square had a record-breaking 2020, with five qualified opportunity zone funds and a number of other real estate developments in production."
Located at 2900 – 2904 West Clay St., Scott's Collection II is a single-structure, ground-up development that will include a five-story, Class A multifamily community with 60 units, private unit balconies and a lobby area. Situated on 0.42 acres of land, Scott's Collection II will feature a wood-framed building situated above a concrete podium and 50-55 onsite parking spaces.
"This is the second building in our 'Scott's Collection' portfolio," said Adam Stifel, executive vice president of development. "We are very proud to have moved forward as planned, having locked in construction pricing and closed on financing in the midst of a pandemic. It really speaks to the strength of this submarket and the commitment of our team to work through adversity."
Scott's Collection II is the second in a group of three developments that will make up "Scott's Collection" in Scott's Addition. The development of Scott's Collection II is the direct result of CSRA Opportunity Zone Fund II, LLC, a project-specific opportunity zone fund launched by Capital Square in December 2019.
Assisting in the development of Scott's Collection II are 510 Architects, the architecture firm; Greystar Property Management; Fulton Bank, which provided the construction loan financing; and Urban Core Construction, the construction company for the ground-up development.
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 97.5% 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. Apartment rental rates in the neighborhood have increased 8.1% on a year-over-year basis and are projected to increase 3% to 4% 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 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 national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. Since 2012, Capital Square has completed more than $2.6 billion in transaction volume. Capital Square's executive team has decades of experience in 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. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense's list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" report in 2019 and their "Fantastic 50" reports in 2019 and 2020. To learn more, visit www.CapitalSquare1031.com.
