Capital Square has launched a new qualified opportunity zone fund. CSRA Opportunity Zone Fund II is a project-specific opportunity zone fund that is raising capital to develop Scott's Collection II, a 60-unit, mixed-use multifamily property in the Scott's Addition designated opportunity zone in Richmond, Va.
CSRA Opportunity Zone Fund II seeks to raise $6.35 million in equity from accredited investors. The fund has a minimum investment of 100 investor units or $100,000.
“Fund I and Fund II are developing apartment communities in the Scott's Addition neighborhood of Richmond, Virginia, a short distance from Capital Square's headquarters,” said Louis Rogers, founder and CEO of Capital Square.
Located at 2900–2904 West Clay St., Scott's Collection II is a single-structure, ground-up development that will include: a five-story, class A multifamily community with 60 units; private unit balconies and lobby area; a wood-framed building situated above a concrete podium; and 50 to 55 onsite parking spaces.
Established in 1901, Scott's Addition is a historic area that is located in a designated opportunity zone. Scott's Addition is the fastest growing neighborhood in Richmond and the second-highest performing market, with 97.6 percent occupancy, according to Yardi Matrix. Apartment rental rates are projected to increase 3 percent to 4 percent per year for five years between 2020 and 2024, according to Yardi Matrix.
"Scott's Addition is an ideal place to develop due to its surging growth, booming economy and limited number of competing apartments," said Adam Stifel, executive vice president of development. "We are pleased to drive growth to the local Richmond economy through our second development in the area.”
In July 2019, Capital Square announced the launch of CSRA Opportunity Zone Fund I, LLC to develop Scott's Collection I, a single-structure, ground-up development that will include a five-story, class A multifamily community with 80 units. Scott's Collection II will be adjacent to Scott's Collection I.
