#USA #Knoxville #Capital Square #Livano Knoxville #opportunity zone

Capital Square Reaches Topping Out Milestone in Knoxville

On December 2, 2024, Capital Square, a prominent player in tax-advantaged real estate investments, proudly announced the completion of a critical phase in the construction of Livano Knoxville. This project, which consists of 348 luxury apartment units, is strategically located within a designated opportunity zone in Knoxville, Tennessee.

Background of the Project

The groundbreaking for Livano Knoxville took place in June 2023, and the first residents are expected to move in by spring 2025. This monumental development represents Capital Square's eighth opportunity zone initiative, providing investors the unique chance to defer and potentially exclude capital gains from the sale of various assets, as explained by Louis Rogers, the firm's founder and co-CEO.

“Livano Knoxville is not just about creating apartments; it’s about generating jobs and increasing tax revenue for the community while fulfilling the intent of the opportunity zone legislation,” said Rogers.

Location and Community Impact

Conveniently situated at 451 W. Blount Ave., Livano Knoxville is just a stone's throw away from the University of Tennessee’s Neyland Stadium, offering easy access to major regional employers, including the Department of Energy’s Oak Ridge National Laboratory, Covenant Health, and DENSO Corporation, among others.

The community will feature a mix of studio, one-, two-, and three-bedroom apartments, all averaging approximately 930 square feet. Among the 348 units, the development includes 35 workforce housing units, ensuring that residents earning up to 80% of the median family income have affordable living options.

Overcoming Challenges

In a climate where many developments have stalled due to rising financing and construction costs, the collaborative effort between Capital Square and LIV Development has kept the Livano Knoxville project on track. Whitson Huffman, co-CEO of the firm, expressed satisfaction at reaching this construction milestone, emphasizing that the completed community will provide luxury living spaces for medium-income families in Tennessee's third-largest city.

Development Team and Economic Impact

The project's architectural design is being handled by Niles Bolton Associates, Inc., with interior designs managed by Design South Interiors. The Southern Building Group serves as the general contractor. According to an economic impact study conducted by FTI Consulting, the construction of Livano Knoxville will create an impressive 634 new jobs and generate approximately $2.9 million in annual state and local tax revenue during the construction phase. Once operational, it is projected to contribute an annual tax revenue of $1.1 million.

Future Plans

In an exciting development for the future, Capital Square has also kicked off the CSRA Opportunity Zone Fund IX, LLC to finance another ambitious mixed-use apartment and luxury hotel project in Richmond, Virginia. This new fund aims to raise $77 million in equity. Since its establishment in 2012, Capital Square has been actively promoting economically advantageous investment opportunities, raising more than $3 billion and initiating development value exceeding $870 million across its various opportunity zone funds.

Opportunity zones were introduced as part of the Tax Cuts and Jobs Act of 2017, aiming to boost long-term private investments in disadvantaged communities. Livano Knoxville stands as a testament to how targeted investments can create significant economic revitalization while fulfilling the pressing housing needs in dynamic urban areas.

For a company like Capital Square, recognized by Inc. 5000 as one of the fastest-growing companies in the nation for eight consecutive years, this project marks another step towards sustainable growth and community enhancement.

For more information on Capital Square and its array of offerings, visit CapitalSq.com.