Capital Square Looks to Raise $77M for 9th OZ Fund
Capital Square, a Richmond, VA-based sponsor of tax-advantaged real estate investments as well as a developer and manager of housing communities, launched its ninth opportunity zone (OZ) fund.
CSRA Opportunity Zone Fund IX, LLC. plans to seek funds to build a 320-unit mixed-use apartment community and luxury hotel in Richmond’s Scott’s Addition. The firm plans to raise $77 million in equity from accredited investors.
The 2.18-acre property will feature approximately 220 traditional apartment units and 100 furnished luxury apartment hotel rooms, the firm said.
Over the last five years, Capital Square has invested more than $230 million towards the construction of eight developments, totaling over 1,600 residential units and 40,000 square feet of retail. Four developments totaling 600 units located in Scott’s Addition have delivered and stabilized, returning more than $20 million to date to investors in net proceeds from refinancings.
“The lease-up pace and lease renewal activity in our newly delivered buildings show us that more units are in demand, and the hotel component will be the only nightly stay option in all of Scott’s Addition. We are excited to build off our previous success and continue to raise the bar in Richmond,” said Whitson Huffman, co-CEO.
This is the firm’s sixth development in Scott’s Addition. Previously, it fully subscribed CSRA/GS Opportunity Zone V, LLC to fund the development of The Otis, as well as CSRA Opportunity Zone Fund VII, LLC to fund the development of 352 apartment units.
Since 2012, Capital Square has completed over $7.8 billion in transaction volume. The firm’s mixed-use development projects include nearly 2,000 apartment units with a development cost of more than $790 million.
