Capital Square Marks Construction Milestone with Topping Out of Knoxville Multifamily Opportunity Zone Development

KNOXVILLE, Tenn., Dec. 2, 2024 /PRNewswire/ -- Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer and manager of housing communities, announced today the topping out of Livano Knoxville, a 348-unit, Class A multifamily community development located within a qualified opportunity zone in Knoxville, Tennessee. The project, which is being developed in partnership with LIV Development, broke ground in June 2023 with first move-ins anticipated in spring 2025.

"Livano Knoxville is Capital Square's eighth opportunity zone fund. By investing in the fund, investors are able to defer and exclude their capital gains from the sale of any asset," said Louis Rogers, founder and co-chief executive officer of Capital Square. "By creating jobs and tax revenue, Livano Knoxville is satisfying the legislative intent of the opportunity zone legislation in addition to providing much needed housing."

Located at 451 W. Blount Ave., just south of the Tennessee River and adjacent to the University of Tennessee's Neyland Stadium, Livano Knoxville will include studio, one-, two- and three-bedroom apartment homes averaging approximately 930 square feet. The property features 35 workforce housing units for residents who earn up to 80% of the area's annual medium family income level.

Residents will have access to major employers, including the U.S. Department of Energy Oak Ridge National Laboratory, Covenant Health, the University of Tennessee, Tennessee Valley Authority, Knox County Schools, University Health System, The Dollywood Company, Clayton Homes, DENSO Corporation, Tennova Healthcare and Blount Memorial Hospital.

"Amidst the challenges for financing and construction costs that have hindered developments nationwide, Capital Square and LIV Development have been able to continue to carry out the development timeline for Livano Knoxville," said Whitson Huffman, co-chief executive officer. "We are pleased to have reached this important milestone on this project that will deliver a luxury multifamily community to medium income residents of Tennessee's third largest city."

The development's project team includes Niles Bolton Associates, Inc. as building architect, Design South Interiors as interior designer and Southern Building Group as general contractor.

Development of Livano Knoxville has been funded in part by Capital Square's eighth qualified opportunity zone fund, CSRA Opportunity Zone Fund VIII, LLC. According to an economic impact study recently completed by FTI Consulting, construction of Livano Knoxville has generated significant economic and fiscal impacts on the surrounding community, including the creation of 634 new jobs. In turn, the development has generated $2.9 million in annual state and local tax revenue during construction and is projected to deliver $1.1 million in annual state and local tax revenue through building operations.

In June 2024, Capital Square launched CSRA Opportunity Zone Fund IX, LLC, to fund the development of its sixth mixed-use apartment community and luxury hotel in the Scott's Addition neighborhood of Richmond, Virginia. The fund seeks to raise $77 million in equity. This marks the firm's ninth opportunity zone since its formation in 2012.

Capital Square's opportunity zone funds have initiated in excess of $870 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.

Since 2012, Capital Square has raised more than $3 billion in equity from investors for its tax-advantaged real estate investment offerings. The company has consistently ranked as one of the leading sponsors of Delaware statutory trust (DST) investment programs for investors seeking the advantages of Internal Revenue Code Section 1031 exchanges and is also an active sponsor of qualified opportunity zone funds, development LLCs and Capital Square Housing Trust, a real estate investment trust that invests in multifamily communities throughout the Southeast.

About Capital Square
Capital Square is a vertically integrated 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). The company is also an active developer and manager of multifamily communities. Since 2012, Capital Square has completed more than $7.9 billion in transaction volume. Capital Square's mixed-used development projects total over 2,000 apartment units with a total development value in excess of $870 million, and Capital Square Living, the firm's property management division, now manages over 11,000 apartments across multiple states. 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. The company has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for eight consecutive years. Learn more at CapitalSq.com.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative. Diversification does not guarantee profits or protect against losses. FINRA Broker Check link: https://brokercheck.finra.org/.

SOURCE Capital Square

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