Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and a developer of mixed-use multifamily communities, today announced it has broken ground on 320 West South Street, a luxury mixed-use high-rise apartment tower located in the Warehouse District of Raleigh, North Carolina within a qualified opportunity zone. Construction of the development is expected to be completed by summer 2024.
“We couldn’t be more excited to begin construction on 320 West South Street, a truly elevated property that will transform the surrounding neighborhood, bringing vitality and elegance to downtown Raleigh’s Warehouse District,” said Whit Huffman, chief strategy and investment officer. “This property will provide exceptional amenities for residents, who will enjoy the vibrant social lifestyle provided by the nearby galleries, art studios, restaurants and the city’s largest park.”
The 20-story, high-rise community will feature 297 apartment homes and more than 10,000 square feet of ground-floor retail space. A spacious double height resident lobby will lead to approximately 30,000 square feet of amenity space and an attached garage with multiple-floor access will provide parking for residents and their guests. Onsite amenities will include a resort-style swimming pool, rooftop lounge, coworking space and state-of-the-art fitness center. The apartment mix will consist of studios and one-, two- and three-bedroom units, each outfitted with stainless steel appliances, exposed concrete ceilings, tile and luxury vinyl flooring, modern wood cabinets, and sophisticated lighting fixtures.
Situated at the intersection of the Boylan Heights neighborhood, Dorothea Dix Park and downtown Raleigh, 320 West South Street will be one of only a handful of luxury apartment communities in the downtown submarket. It will sit at the epicenter of a thriving part of downtown Raleigh, within easy walking distance of multiple entertainment venues, cultural sites, nightspots, and dining options, as well as the RedHat Amphitheater and Raleigh Convention Center. Located adjacent to U.S. 70, the property offers ready access to The Research Triangle and North Carolina’s well-known educational institutions, including Duke University, the University of North Carolina at Chapel Hill and North Carolina State University.
“Raleigh’s Warehouse District is in the midst of a fundamental transformation from an industrial area to a vibrant and exciting urban center,” explained Adam Stifel, chief development officer. “320 West South Street will provide residents uncanny views of the downtown Raleigh skyline and Red Hat Amphitheater.”
Capital Square has partnered with JDAVIS Architects as building architect, W. M. Jordan Company as general contractor and York Properties as the retail leasing agent for the property. The design team also includes Architecture Firm as interiors designer and EDSA as landscape designer.
Development of 320 West South Street will be primarily funded with proceeds from Capital Square’s sixth qualified opportunity zone fund, CSRA Opportunity Zone Fund VI, LLC, which raised more than $48 million from accredited investors. Capital Square recently launched CSRA Opportunity Zone Fund VII, LLC to fund the development of a luxury multifamily development in the Scott’s Addition neighborhood of Richmond, Virginia. Capital Square’s opportunity zone funds have initiated over $330 million in development value to-date.
Opportunity zones were created to stimulate long-term private investments in low-income urban and rural communities nationwide. 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.
Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of multifamily and mixed-use properties in the southeastern US, with nine current projects totaling approximately 1,700 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $5.8 billion in transaction volume. Capital Square’s related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense’s list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” report in 2019 and their “Fantastic 50” reports in 2019 and 2020. To learn more, visit www.CapitalSq.com.