Glen Allen, VA-based Capital Square has launched CSRA Opportunity Zone Fund VIII, LLC to raise capital for Livano Knoxville, an approximately 348-unit Class A multifamily community located near the University of Tennessee in Knoxville, TN.

The project-specific opportunity zone fund seeks to raise $46.7 million in equity from accredited investors.

Capital Square — sponsor of tax-advantaged real estate investments and developer of multifamily communities — has completed the acquisition of a 5.8-acre lot and secured a $70.4 million construction loan agreement with Truist Bank. Groundbreaking on the $116-million project is scheduled to take place in February.

The property will feature 35 workforce apartment homes available to residents who earn up to 80% of the area’s annual median family income, the remainder of the available units will be market rate apartment homes. The city of Knoxville has agreed to contribute $6.5 million of the project’s total development cost as a result of the inclusion of the workforce housing units.