Capital Square Clinches Construction Loan for OZ Development

Real estate investment firm Capital Square 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, VA.

Walker & Dunlop arranged construction financing.

The funding for the project comes from the firm’s CSRA Opportunity Zone Fund VII, LLC, a qualified opportunity zone fund launched in 2022. The fund 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.

The firm 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.

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.”

Capital Square has completed more than $7.5 billion in transaction volume since 2012.