10A —December 23, 2022 - January 19, 2023 — Financial Digest — M id A tlantic Real Estate Journal
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F inancial D igest
New multifamily projects are revitalizing the City of Richmond’s Scott’s Addition Capital Square’s second Opportunity Zone Fund completes stabilization & permanent financing R
the property achieved initial lease-up and stabilization, with occupancy exceeding 95%. With the project stabilized, Capital Square closed permanent fi- nancing with a long-term loan made by USAA Life Insurance Company. Finally, Capital Square has made a special distribution to investors as contemplated in the offering documents for the fund. “In less than two years, Capi- tal Square delivered its second opportunity zone development to the market, delivering much needed housing to the residents of Richmond,” said Whit Huff- man , co-chief executive officer.
“We identified the Scott’s Addi - tion neighborhood as an ideal location for the development of quality multifamily projects in 2019 and are thrilled to see the proof of concept provided by the success of our first two fully sta - bilized projects, with the third on track for initial monetization next spring.” VIV is the second of three Capital Square development projects that constitute Scott’s Collection, a group of boutique multifamily communities within Richmond’s thriving Scott’s Addition neighbor- hood. “INK,” the first of these projects, opened to residents in January of 2022 and achieved 100% occupancy shortly there- after. INK and VIV are com- manding some of the highest rents in the neighborhood. The offering documents for CSRA Opportunity Zone Fund II, LLC contemplated a special distribution to investors upon stabilization and permanently financing the property. Capital Square is pleased to report that the special distribution was made in October, well in advance of the 2026 due date for investors’ taxes. “Despite construction cost volatility and procurement challenges from the pandemic, Capital Square has now de- livered two exceptional mul- tifamily projects in just three years,” said Louis Rogers , founder and co-chief execu- tive officer. “This is a superb result for the firm’s opportu - nity zone investors. Also, the new multifamily projects are helping to relieve the shortage of quality housing along with revitalizing the historic Scott’s Addition neighborhood.” In addition to VIV and INK, Capital Square currently has three other multifamily devel- opments in various stages of development in the Scott’s Ad- dition opportunity zone that will deliver more than 770 luxury apartment homes in the coming years. These projects include GEM, the remaining Scott’s Collection multifamily project, which is currently pre-leasing and opening to residents later this year. Also included is The Otis, a 350-unit joint develop- ment with Greystar , that is expected to complete its first phase of construction during the fourth quarter of 2022, and 2950 W. Marshall Street, a mixed-use development that will deliver an additional 350 class A apart- ment homes in 2025. MAREJ
ICHMOND, VA — Capital Square , one of the nation’s leading sponsors of tax-advantaged real estate investments and a developer of mixed-use multi- family communities, announced that they have completed ini- tial lease-up and stabilization, closed permanent financing, and made a special distribution to investors in CSRA Opportunity Zone Fund II, LLC, a 58-unit mixed-use multifamily property in Richmond’s Scott’s Addition qualified opportunity zone. Located at 2900 West Clay St., “VIV” is a five-story class A apartment community that in-
900 West Clay St. (VIV)
cludes 1,960 s/f of ground-level retail space. Construction on the highly anticipated property
began in January 2021 and was completed in June 2022. Within three months of completion,
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