CHARLESTON, S.C., Dec. 14, 2023 — Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer and manager of housing communities, and Method Co., a real estate development, design and management company, announced today the topping out of their new project, a 50-unit, luxury boutique hotel in historic downtown Charleston. The as-yet-unnamed development, located at 529 King Street within a qualified opportunity zone, is expected to be completed by summer 2024.
“Capital Square focuses on development opportunities in growing Southeastern markets, including Charleston, Raleigh, Knoxville and Richmond,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Charleston is a supply-constrained market with a shortage of hotel rooms and extended-stay options, resulting in strong demand for an apartment hotel product.”
“Reaching this milestone is an exciting moment for our team,” said David Grasso, president, and co-founder of Method Co. “Method Co. is dedicated to crafting exceptional spaces and experiences – and 529 King Street embodies this commitment. At the core of our vision, we believe that thoughtful placemaking transforms spaces into vibrant, thriving communities, and that is at the essence of this project.”
529 King Street is a five-story project featuring a mix of studio, one-, two- and three-bedroom units. The development totals approximately 52,700 square feet with 32,000 net rentable square feet of hotel and retail space. The project features a lush interior courtyard and a rooftop lounge that will be open to the public. The facade offers a modern interpretation of the historic Victorian-era aesthetic that’s prevalent in Charleston.
Community amenities will include 44 valet-operated parking spaces; a lush, private interior courtyard that will function as an open-air living room; a library and coworking space; a guest-only lounge; a semi-private terrace or balcony; and a publicly accessible rooftop lounge offering food, beverages, and views of downtown Charleston and the harbor.
The project marks Method Co.’s second development in Charleston after The Pinch, a boutique hotel that debuted in April 2022. Charleston culinary veteran Jason Stanhope, formerly of FIG, will oversee food and beverage operations at the rooftop lounge. Stanhope, a James Beard Award winner, is currently the executive chef of Lowland and the Quinte.
“Topping out is a significant milestone in any property development, and particularly so in the current economic environment, where financing and construction costs pose significant challenges,” said Whit Huffman, co-chief executive officer. “Despite these challenges, the Capital Square team is succeeding in the development of 529 King Street. We look forward to delivering this premier extended-stay property to the residents of Charleston and its many visitors.”
Charleston is known for its coastal charms and historical sites, such as Morris Island Lighthouse and the Old Exchange and Provost Dungeon. Close proximity to Highway 17 and the prominent Arthur Ravenel Jr. Bridge provides easy access to Greater Charleston where residents can enjoy a thriving downtown area with a variety of restaurants, cultural sites and entertainment venues, including the Waterfront Park Pier and Rainbow Row.
529 King Street was funded with proceeds from Method Co. as well as from Capital Square’s fourth qualified opportunity zone fund, CSRA Opportunity Zone Fund IV, LLC. Capital Square is an active sponsor of qualified opportunity funds and 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, and CSRA Opportunity Zone Fund VIII, LLC to help finance the construction of a Class A apartment community in Knoxville, Tennessee.
Capital Square’s opportunity zone funds have initiated in excess of $590 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 partnered with Morris Adjmi Architects and LS3P as building architect, BL Harbert as general contractor and Method Co. as the co-developer and operator of the project.
Since its formation in 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 LLC’s and Capital Square Apartment REIT, a real estate investment trust that invests in multifamily communities throughout the Southeast.
