Capital Square Secures Construction Financing for Richmond Residences

United Bank provided the loan.

The property is located in an Opportunity Zone in the Virginia state capital. Image courtesy of Capital Square

Capital Square has landed financing for its latest multifamily development, a project in the Scott’s Addition Opportunity Zone of Richmond, Va. Walker & Dunlop arranged the construction financing, which was provided by United Bank.

The amount provided could not immediately be learned. Capital Square began constructing the project in April. The 352-unit community is expected to be complete by summer 2025.

Yet-to-be-named, the community will total three buildings, which will be located at 2929 W. Clay. St, 2922 W. Marshall St., and 2925 W. Marshall St. The communities will give residents nearby access to the surrounding Scott’s Addition neighborhood and its many retail and restaurant options.

The property will include one-, two- and three-bedroom units, along with common amenities like a zero-edge pool, gym, clubhouse, dog park, sky lounge and courtyards. Capital Square is also planning to include podium parking and more than 5,350 square feet of ground-level retail space at the site.

Building up Scott’s Addition

As part of its multifamily development, Capital Square is looking to raise approximately $63.3 million in equity for its CSRA Opportunity Zone Fund VII. The fund represents the company’s fifth Opportunity Zone fund that was designed to develop a community in Richmond’s Scott’s Addition neighborhood. Capital Square previously developed Scott’s Collection, a trio of ground-up five-story multifamily projects that are also located within Scott’s Addition Opportunity Zone.

Whitson Huffman, co-CEO at Capital Square, said in prepared remarks that the company’s Opportunity Zone developments in Richmond have been very successful, benefitting both the fund investors and the local economies. After Scott’s Collection, the company also raised capital through the CSRA/GS Opportunity Zone Fund V, that would be used to develop The Otis. The 350-unit community is also located in Scott’s Addition and is being developed by a joint venture between Capital Square and Greystar Real Estate Partners. Outside of Capital Square’s multifamily funds, the company also acquired Livingston Apartment Flats, a 307-unit also in Richmond, as part of a Delaware Statutory Trust offering.

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