Richmond, VA-based Capital Square has launched Capital Square Multifamily Development Fund I, L.P. to raise up to $300 million in equity from institutional investors.

The fund will invest in the limited partner equity portion of the capital stack and will focus on emerging secondary growth markets in the Mid-Atlantic and the Southeast that lack institutional capital investment, such as Richmond, VA, Charleston, SC and Knoxville, TN.

“There is a shortage of quality housing that traces its origin to the Great Real Estate Recession,” said Louis Rogers, founder and CEO of Capital Square. “The shortage was exacerbated by the COVID-19 pandemic that delayed or halted many new developments. To accelerate the development of new Class A institutional-quality multifamily communities, the fund will focus on shovel-ready, ground-up sites. Capital Square is bullish on Class A multifamily investments that generate an unrivaled combination of stable cash flow, appreciation potential and inflation protection.”