Capital Square Closes on Construction Loan for Seventh Opportunity Zone Fund Development

Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced today that the firm has secured financing from United Bank to fund construction of a 352-unit, Class A multifamily development in the Scott's Addition qualified opportunity zone in Richmond, Virginia. Walker & Dunlop arranged construction financing on behalf of the borrower. Construction began in April 2023 and is expected to be completed by Summer 2025.

CSRA Opportunity Zone Fund VII, LLC, a qualified opportunity zone fund launched by Capital Square in 2022, is currently raising approximately $63.3 million in equity from accredited investors. CSRA Opportunity Zone Fund VII is the fifth opportunity zone fund launched by Capital Square to develop similar multifamily properties in Richmond's Scott's Addition neighborhood.

"Capital Square has delivered for opportunity zone investors by building exceptional Class A housing communities and delivering them on time and on budget, then leasing them up in record time, and commanding the highest rents in the submarket," said Louis Rogers, founder and co-chief executive officer of Capital Square. "This construction loan is the next critical step in the development process for CSRA Opportunity Zone Fund VII."

Located at 2929 W. Clay St., 2922 W. Marshall St., and 2925 W. Marshall St., the community will include three adjoining multifamily buildings above podium parking with over 5,350 square feet of ground-level retail space. Market-leading amenities will include lush courtyards, zero-edge pool, gym, clubhouse, dog park, sky lounge and more. Residents will be within walking distance of arts, cultural and lifestyle amenities provided by the Scott's Addition neighborhood, which contains over 51 retail, dining and entertainment venues.

Capital Square previously launched CSRA Opportunity Zone Fund I, LLC, CSRA Opportunity Zone Fund II, LLC and CSRA Opportunity Zone Fund III, LLC, which raised capital from accredited investors to develop Scott's Collection, a trio of single-structure, ground-up developments featuring five-story, Class A multifamily communities with onsite parking and an expansive amenity package, all within the Scott's Addition qualified opportunity zone. CSRA/GS Opportunity Zone Fund V, LLC raised capital from investors to fund the development of The Otis, a joint venture with Greystar Real Estate Partners in Scott's Addition. 

"Capital Square's opportunity zone developments in Richmond have been tremendously successful on multiple levels," said Whitson Huffman, co-chief executive officer of Capital Square. "They have not only proven to be excellent investments for our company and the investors we serve, but they have also provided tremendous local economic and fiscal benefits to our hometown of Richmond and the Commonwealth of Virginia that will generate millions of dollars in tax and private economic revenue for many years to come."

According to an economic impact study recently completed by FTI Consulting, Capital Square's Scott's Addition-focused opportunity zone developments have generated significant economic and fiscal impacts, including the creation of approximately 1,500 construction jobs and 63 permanent full-time jobs. In turn, the developments have generated $9.7 million in annual state and local tax revenue during their construction phases and are projected to deliver $7.7 million in annual state and local tax revenues during their operational phases.

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