Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer and manager of housing communities, announced the topping out of Chasen, a 352-unit, multifamily community development in Richmond, Virginia’s Scott’s Addition qualified opportunity zone.
The development, funded by equity raised by CSRA Opportunity Zone Fund VII, LLC, broke ground in April 2023 and is the fifth opportunity zone development the company has topped out in Scott’s Addition during the past four years.
“Capital Square would like to thank the many investors and financial advisors across the nation who had the foresight to invest in Capital Square’s fifth opportunity zone fund in Scott’s Addition,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “By investing in this manner, investors are able to defer and exclude capital gains from the sale of any asset. The tax benefits incentivize investors to fund new developments that generate meaningful economic activity, new jobs and tax revenue for localities. This is a win-win for all the parties.”
Upon completion, the community will include three six- and seven-story adjoining multifamily buildings above podium parking comprised of studio, one-, two-, and three-bedroom apartments with over 5,350 square feet of ground-level retail space.
Community amenities will include a resort-style saltwater pool, lounge and golf simulator, fitness club with studio, co-working lounge with private offices, pet spa, bike storage and repair, lush courtyards and a rooftop lounge with outdoor terrace, among others. 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.
Established in 1901, Scott’s Addition is a historic area known for its food, drink and entertainment amenities, including 13 breweries, cideries, meaderies and distilleries. Once a hub for industrial buildings and businesses, Scott’s Addition is a dining and entertainment destination that was recently dubbed Richmond’s “craft beverage capital” by CNN. The area is a designated opportunity zone with a census tract that stretches across Virginia Commonwealth University and the Carver neighborhood and is now known as Richmond’s fastest growing neighborhood, according to the Greater Scott’s Addition Association.
The Chasen project team includes Timmons Group as civil engineer, Poole & Poole Architecture as building architect, Hourigan Construction as general contractor, ENV as interior designer and Marvel Designs as landscape architect, all locally based firms.
“The current economic environment has posed significant challenges to financing and construction costs for developments nationwide, which makes this topping out not only a milestone for the project but a testament to the hard work and collaboration of every individual involved,” said Whitson Huffman, co-chief executive officer. “The Capital Square team was able to persevere through these challenges and we look forward to delivering yet another luxury multifamily community to the Scott’s Addition qualified opportunity zone.”
Capital Square has been the most active developer within the Scott’s Addition neighborhood since 2020, having completed four Class A multifamily communities: INK at Scott’s Collection, VIV at Scott’s Collection, GEM at Scott’s Collection, and Otis, all within walking distance of one another. In total, Capital Square will have delivered more than 900 Class A apartment homes to the community upon completion of the CSRA Opportunity Zone Fund VII project. Otis, a 350-unit, mixed-use multifamily development, received the 2024 CoStar Impact Award for multifamily development of the year, as selected by an independent panel of local industry professionals.
Development of Chasen is funded with proceeds from CSRA Opportunity Zone Fund VII, LLC. 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 as of April 2023. 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 as of April 2023. Overall, Capital Square’s nine opportunity zone funds have initiated in excess of $870 million in gross asset value to date.
In June 2024, Capital Square launched CSRA Opportunity Zone Fund IX, LLC, to fund the development of its sixth mixed-use apartment community and luxury hotel in the Scott’s Addition neighborhood of Richmond, Virginia. The fund seeks to raise $77 million in equity.
