Capital Square and Greystar have acquired 2.28 acres of land in Richmond, Virginia’s Scott’s Addition opportunity zone for the development of 1601 Roseneath Road, a 350-unit multifamily project with ground-floor retail space.
“We are thrilled that Greystar selected Capital Square as their capital partner to develop the premier mixed-use apartment community in Scott’s Addition that will serve to complement the three projects Capital Square is developing in the area,” said Louis Rogers, founder and chief executive officer of Capital Square.
Located at the intersection of two main thoroughfares in Scott’s Addition, 1601 Roseneath Road will be a six-story, Class A multifamily community with 15,000 square feet of retail space. The 2.28-acre property will have 380 onsite parking spaces.
”Capital for the development is being raised through CSRA/GS Opportunity Zone V, LLC, a $32,396,000 project-specific opportunity zone fund that is open to accredited investors,” said Capital Square in a statement.
“Richmond has evolved as one of the most compelling real estate markets in the Mid-Atlantic, and Scott’s Addition has become a huge part of the city’s soul,” said John Clarkson, Managing Director of Greystar’s Mid-Atlantic development division. “We could not be more excited to blend our development experience with Capital Square’s capital ingenuity and local market knowledge to develop this transformational project.”
Established in 1901, Scott’s Addition is a historic area that is now the City of Richmond’s fastest growing neighborhood and the second-highest performing market with 97.5% occupancy, according to Yardi Matrix.
Scott’s Addition is a designated opportunity zone with a census tract that stretches across Virginia Commonwealth University and the Carver neighborhood. Apartment rental rates in the neighborhood have increased 8.1% on a year-over-year basis and are projected to increase 3% to 4% per year for five years.
1601 Roseneath Road is Capital Square’s fourth project in the Scott’s Addition designated opportunity zone. Previously, Capital Square launched a trio of developments – Scott’s Collection I, II and III – within a few blocks of the 1601 Roseneath Road project.
Opportunity zones were created by Congress to stimulate long-term private investments in low-income urban and rural communities, along with certain contiguous areas. Conceived as part of the Tax Cuts and Jobs Act of 2017, opportunity zone funds are intended to help foster economic growth by providing tax benefits to incentivize private investments in designated opportunity zones.