Capital Square Addresses Housing Shortage, Launching $300M Fund

Emerging secondary markets in the Mid-Atlantic and Southeast regions are the focus.

Addressing the shortage of quality housing that traces its origin to the Great Recession, Capital Square announced this week it will embark on a fund to build in the Mid-Atlantic and Southeast regions.

The Capital Square Multifamily Development Fund I, L.P., seeks to raise up to $300 million in equity from institutional investors who will participate in the development of a portfolio of ground-up, multifamily communities throughout these regions, in markets such as Richmond, Va.; Charleston, S.C.; and Knoxville, Tenn.

Louis Rogers, founder and chief executive officer of Capital Square, said in prepared remarks. “The shortage was exacerbated by the COVID-19 pandemic that delayed or halted many new developments.

“To accelerate the development of new Class A institutional-quality multifamily communities, the fund will focus on shovel-ready, ground-up sites. 

‘Bullish’ on Class A Multifamily’

“Capital Square is bullish on Class A multifamily investments that generate an unrivaled combination of stable cash flow, appreciation potential and inflation protection. Investors are flocking to the multifamily asset class.”

This fund is a continuation of Capital Square’s focus on investing in “quality” multifamily assets, according to a release, and it “will invest in the limited partner equity portion of the capital stack and will focus on emerging secondary growth markets.”

During the past 10 years, Capital Square has completed more than $5.6 billion in real estate transactions in emerging secondary markets, including the acquisition of 13,100 multifamily units. Additionally, Capital Square is currently developing eight multifamily projects totaling 1,954 units.