On December 2, Capital Square announced the celebration of the topping out of Livano Knoxville, which is a 348-unit Class A multifamily community, currently under construction in a qualified opportunity zone in Knoxville, Tennessee. This project, which is being developed in collaboration with LIV Development, was launched in June 2023 with the expectation of welcoming its first residents in spring 2025.
“Livano Knoxville is the eighth opportunity zone fund of Capital Square and with this investment, 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. “Through the creation of jobs and generating revenue, Livano Knoxville is in line with the purpose of the opportunity zone legislation while providing much needed housing.”
Livano Knoxville Location
The property is situated at 451 W. Blount Ave, just south of the Tennessee River and near the University of Tennessee’s Neyland Stadium and will include 348 apartment units. The property comprises 35 affordable workforce housing units for occupants with an income of 80% of the area’s annual median family income.
“Despite widespread challenges in development financing and escalating construction costs that have stalled projects nationwide, Capital Square and LIV Development have successfully maintained our Livano Knoxville project timeline,” said Whitson Huffman, co-chief executive officer. “Furthermore, we feel deeply gratified to have reached this critical project milestone, which will ultimately deliver a high-end apartment community to medium income earners in Tennessee’s third largest city.”
The development’s project 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.
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Funding for Livano Knoxville
Capital Square’s eighth qualified opportunity zone fund, CSRA Opportunity Zone Fund VIII, LLC, partially funded Livano Knoxville’s development. Additionally, An FTI Consulting economic impact study revealed the project’s significant community benefits. Construction created 634 new jobs and generated $2.9 million in annual state and local tax revenue. The development will generate $1.1 million in annual state and local tax revenue once operational.
Capital Square’s opportunity zone funds have driven over $870 million in development value through the opportunity zone program, created by the 2017 Tax Cuts and Jobs Act. By offering strategic tax benefits, these funds incentivize private investments in designated low-income urban and rural communities nationwide, fostering economic growth and revitalization.
About the Livano Knoxville
Livano Knoxville is at an ideal location that’s directly across from Neyland Stadium and the University of Tennessee’s football stadium. Additionally, residents will have access to major employers within the vicinity such as Oak Ridge National Laboratory, and Covenant Health. Other nearby employers include Tennessee Valley Authority, Knox County Schools, University Health System, Dollywood Company, Clayton Homes, DENSO Corporation, and Tennova.
Since 2012, Capital Square has raised over $3 billion in equity from investors through tax-advantaged real estate investment offerings. Also, the company leads in Delaware statutory trust (DST) investment programs, helping investors leverage Internal Revenue Code Section 1031 exchanges. Capital Square also sponsors qualified opportunity zone funds, development LLCs, and Capital Square Housing Trust, which invests in multifamily communities throughout the Southeast.
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