Capital Square, a prominent sponsor of tax-advantaged real estate investments and a leading developer and manager of housing communities, has announced the topping out of Livano Knoxville, a 348-unit Class A multifamily community located within an opportunity zone in Knoxville, Tennessee.

“Livano Knoxville represents Capital Square’s eighth opportunity zone fund. By investing in this fund, investors can defer and exclude capital gains from the sale of any asset,” said Louis Rogers, founder and co-CEO of Capital Square. “This project not only creates jobs and tax revenue, but it also aligns with the legislative goals of opportunity zones by providing essential housing.”

The Livano Knoxville property, located at 451 W. Blount Avenue near the Tennessee River and the University of Tennessee’s Neyland Stadium, will offer studio, one-, two-, and three-bedroom apartments, with an average size of about 930 square feet. Among these, 35 units will be designated for workforce housing, serving residents earning up to 80% of the area’s median family income.

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

“Despite challenges related to financing and construction costs impacting developments nationwide, Capital Square and LIV Development have successfully adhered to the project’s timeline for Livano Knoxville,” stated Whitson Huffman, co-CEO. “We are proud to reach this significant milestone for a development that will bring a luxury multifamily community to middle-income residents in Tennessee’s third-largest city.”

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

Partially funded by Capital Square’s eighth qualified opportunity zone fund, CSRA Opportunity Zone Fund VIII, LLC, Livano Knoxville’s construction has had substantial economic impacts, as confirmed by a recent FTI Consulting study. The project has led to the creation of 634 new jobs and generated $2.9 million in annual state and local tax revenue during construction, with expectations to generate $1.1 million annually in tax revenue once operational.

In June 2024, Capital Square launched its CSRA Opportunity Zone Fund IX, LLC, which will support the development of a mixed-use apartment community and luxury hotel in Richmond, Virginia’s Scott’s Addition neighborhood. The fund aims to raise $77 million in equity, marking the firm’s ninth opportunity zone since its founding in 2012.

To date, Capital Square’s opportunity zone funds have initiated over $870 million in development value.

Opportunity zones, established as part of the Tax Cuts and Jobs Act of 2017, were designed to stimulate private investment in low-income urban and rural areas by offering tax incentives. These zones aim to foster long-term economic growth in underserved communities.

Since its inception, Capital Square has raised over $3 billion in equity for tax-advantaged real estate investments. The company is a leader in Delaware statutory trust (DST) investment programs, offering tax benefits through Internal Revenue Code Section 1031 exchanges, and is also a prominent sponsor of qualified opportunity zone funds, development LLCs, and the Capital Square Housing Trust, which invests in multifamily communities throughout the Southeast.