Cresset Partners today announced the formation of a joint venture with Level 2 Development and SJG Properties to develop The Ace Apartments (“The Ace”), a new mid-rise residential building in Richmond, Virginia. This will be the first project in Cresset’s third Qualified Opportunity Zone fund, Cresset Diversified QOZ Fund III (“Fund III”).
Groundbreaking is expected in the third quarter of 2023. Located in the burgeoning Scott’s Addition Historic District, The Ace offers convenient access to the diverse Richmond employment base, Interstates 195, 64, and 95, as well as West Broad Street, a major east-west artery serving Richmond and the surrounding area.
Just three miles from downtown Richmond, the 1.7-acre, $98 million project is proximate to multiple retail and entertainment amenities and will feature 295 luxury studio, one-, and two-bedroom apartments, averaging 753 square feet per unit. The units will include top-of-market finishes including stainless steel appliances, quartz countertops, and large, sunlit windows, as well as balconies in 85% of the units. Additionally, the development will include a 7,500-square-foot courtyard, a 4,500-square-foot clubroom, and a swimming pool, among other amenities. The project will also include over 13,000 square feet of ground-floor commercial space.
“We are excited to partner with Cresset Partners in our Scott’s Addition Project,” said Ashley Wiltshire of SJG Properties. Cresset’s experience in Opportunity Zone projects and their long-term investment strategy made them a natural choice as a partner in developing The Ace. Cresset’s inclusion in our joint venture made a strong team even stronger.”
“The commitment to this project by Cresset, Level 2 Development, and SJG Properties is a testament to our dedication and confidence to create a development that enhances the surrounding community, contributes to economic growth, and becomes a landmark in the Scott’s Addition neighborhood of Richmond, VA,” said David Franco of Level 2 Development.
The Ace is located within a ten-minute walk to the Diamond District, a $2.4 billion redevelopment project that will center around the new home stadium for the Richmond Flying Squirrels, the local Minor League Baseball team and Double-A affiliate of the San Francisco Giants. Once completed, the development will include an 11-acre greenway, housing, offices, hotels, and a concert venue.
“The Richmond Metro Area has been the fastest growing metropolitan region in Virginia since 2020 and shows no signs of slowing its development yet,” said Jason Ross, Director at Cresset Partners. “We’re very excited to support that growth by partnering with Level 2 and SJG on The Ace Apartments project. We’re thrilled by the strong investor interest so far in Fund III and look forward to continuing to deploy that capital into strategic, top-quality projects like The Ace over the coming months.”
The partnership marks the first investment from Fund III, which launched in June 2022 following the success of its $655 million predecessor, Cresset Diversified Qualified Opportunity Zone Fund II. In total, Cresset Partners has committed $1.2 billion in equity to QOZ projects covering more than six million in square footage and creating more than 40,000 permanent and temporary jobs across the country.
The debt and equity for the project were sourced by Adam Bieber, Daniel Shiff, Charles DuBose, and Alec Jenkins of BWE, a national, full-service commercial and multifamily banking company. Sandy Spring Bank and Five Star Bank committed a $58.4 million construction loan for the project. As the general contractor, the developers have engaged Fortune-Johnson, a multifamily contractor with expertise across the Southeast and Mid-Atlantic including four previous projects in the Richmond Metro Area. Initial occupancy is slated for the first half of 2025.
(This news/press release has not been altered by investment.net, apart from the headline, and has been obtained from a syndicated source:- https://www.businesswire.com/news/home/20230803052489/en/Cresset-Enters-Joints-Venture-with-Level-2-Development-and-SJG-Properties-Marking-the-Firm%E2%80%99s-Latest-Qualified-Opportunity-Zone-Fund-Investment)