Capital Square Secures Construction Loan for Virginia OZ Project

The firm will use the financing for a mixed-use community in the Scott’s Addition Opportunity Zone in Richmond, Va.
Rendering of Scott’s Collection II. Image Courtesy of Capital Square

Capital Square has received a loan from Fulton Bank N.A., for construction of Scott’s Collection II, a mixed-use, 60-unit multifamily property in the Scott’s Addition designated opportunity zone in Richmond, Va. It will be the second of the three-phase Scott’s Collection that will eventually consist of three mixed-use multifamily properties.

Details on the amount of the loan or when construction would begin were not disclosed. Jamie Butler of Walker & Dunlop secured the loan from Fulton Bank on behalf of Capital Square, a Richmond-based sponsor of tax-advantaged real estate investments. Louis Rogers, founder & CEO of Capital Square, said in prepared remarks the development would create new jobs and economic activity, estimated at more than $50 million, in Scott’s Addition, a historic area that has become the city’s fastest growing neighborhood.

CSRA Opportunity Zone II LLC, a project-specific opportunity zone fund launched by Capital Square in December 2019, raised equity to begin the development of Scott’s Collection II. Located at 2900-2904 West Clay St., Scott’s Collection II will be a single-structure, five-story, Class A multifamily development comprising 60 units with private balconies. The property will feature a wood-framed building above a concrete podium, 40 to 45 parking spaces, a courtyard with kitchen, work space and about 2,100 square feet of ground-floor space.

CSRA Opportunity Zone Fund I LLC, raised equity to develop Scott’s Collection I, a five-story, 80-unit multifamily community at 3000-3008 West Clay St. that broke ground in August.

Capital Square is also developing a six-story, 350-unit mixed-use Class A apartment property at nearby 1601 Roseneath Road in Scott’s Addition. Funded by CSRA/GS Opportunity Zone V LLC, the property will have about 15,000 square feet of ground-floor retail and 380 parking spaces.

Capital Square Deals

Also in Virginia, Capital Square obtained $225.1 million in financing in November 2019 from Fannie Mae and a bank lender for five apartment communities the firm had acquired that year. The properties included four stabilized assets and one newly completed development and total 1,621 units. Two were in Richmond and one each in Virginia Beach, Woodbridge and Leesburg, Va.

This week, the firm expanded its presence in Florida with the acquisition of Maplewood Estates, a 412-site manufactured housing community aimed at residents 55 and over. It is the company’s third purchase in Florida this year and comes less than a month after acquiring Harbor View, also a 55+ age-restricted manufactured housing community with 147 home sites in Port Charlotte, Fla.