Capital Square—a sponsor of tax-advantaged real estate investments and a developer and manager of housing communities—and Method Co.—a real estate development, design and management company—have topped out their new project: a 50-unit boutique hotel in downtown Charleston, S.C. The officially as-yet-unnamed development at 529 King Street (which Method's website calls Roost King Street) is within a qualified opportunity zone and is expected to be completed by summer 2024.
"Capital Square focuses on development opportunities in growing Southeastern markets, including Charleston; Raleigh, [N.C.]; Knoxville, [Tenn.]; and Richmond [Va.]," Louis Rogers, founder and co-CEO of Capital Square, said in a statement. "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," David Grasso, president and co-founder of Method Co., added. "Method Co. is dedicated to crafting exceptional spaces and experiences—and 529 King Street embodies this commitment."
529 King Street is a five-story project with 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 has an interior courtyard and a rooftop lounge that will be open to the public. The facade is a modern interpretation of the historic Victorian-era aesthetic prevalent in Charleston.
Community amenities will include 44 valet-operated parking spaces; a private interior courtyard that will function as an open-air living room; a library and coworking space; a guest-only lounge; a semiprivate terrace or balcony; and a publicly accessible rooftop lounge with 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-CEO of Capital Square. "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."
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. Capital Square is an active sponsor of qualified opportunity funds and recently launched CSRA Opportunity Zone Fund VII to fund the development of a luxury multifamily development in the Scott's Addition neighborhood of Richmond, Va., and CSRA Opportunity Zone Fund VIII to help finance the construction of a Class A apartment community in Knoxville, Tenn.
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. 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.