KNOXVILLE, TN - Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer and manager of housing communities, announced the topping out of Livano Knoxville, a 348-unit, Class A multifamily community development located within a qualified opportunity zone in Knoxville, Tennessee. The project, which is being developed in partnership with LIV Development, broke ground in June 2023 with first move-ins anticipated in spring 2025.
"Livano Knoxville is Capital Square's eighth opportunity zone fund. By investing in the fund, 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. "By creating jobs and tax revenue, Livano Knoxville is satisfying the legislative intent of the opportunity zone legislation in addition to providing much needed housing."
Located at 451 W. Blount Ave., just south of the Tennessee River and adjacent to the University of Tennessee's Neyland Stadium, Livano Knoxville will include studio, one-, two- and three-bedroom apartment homes averaging approximately 930 square feet. The property features 35 workforce housing units for residents who earn up to 80% of the area's annual medium family income level.
Residents will have access to major employers, including the U.S. Department of Energy Oak Ridge National Laboratory, Covenant Health, the University of Tennessee, Tennessee Valley Authority, Knox County Schools, University Health System, The Dollywood Company, Clayton Homes, DENSO Corporation, Tennova Healthcare and Blount Memorial Hospital.
"Amidst the challenges for financing and construction costs that have hindered developments nationwide, Capital Square and LIV Development have been able to continue to carry out the development timeline for Livano Knoxville," said Whitson Huffman, co-chief executive officer. "We are pleased to have reached this important milestone on this project that will deliver a luxury multifamily community to medium income residents of Tennessee's third largest city."
The development's project team includes Niles Bolton Associates, Inc. as building architect, Design South Interiors as interior designer and Southern Building Group as general contractor.
Development of Livano Knoxville has been funded in part by Capital Square's eighth qualified opportunity zone fund, CSRA Opportunity Zone Fund VIII, LLC. According to an economic impact study recently completed by FTI Consulting, construction of Livano Knoxville has generated significant economic and fiscal impacts on the surrounding community, including the creation of 634 new jobs. In turn, the development has generated $2.9 million in annual state and local tax revenue during construction and is projected to deliver $1.1 million in annual state and local tax revenue through building operations.