• proven markets,
• proven tracts and
• proven execution.

If you’re considering a Qualified Opportunity Zone Fund (QOF) investment, 2026 offers potentially significant strategic advantages.

Why Invest in a QOF in 2026?

1. Today’s Fair Market Value may be tomorrow’s missed advantage.

The QOF statute requires taxation on the investment that was sold based on the fair market value (FMV) of the investment on December 31, 2026. With that date approaching, we are in a short window to obtain a valuation discount that will materially reduce taxable gain.

Specifically, between now and December 31, 2026, investors have the opportunity to capture IRC-mandated valuation discounts by investing in QOFs holding assets still under construction at year-end 2026. Depending on individual circumstances, the tax value derived from the FMV discount may surpass the QOF-related tax incentives projected to be available in 2027 under the OBBB framework that establishes OZ 2.0 rules.

Put simply: the December 31, 2026 valuation discount is a strategic opportunity to reduce taxable gain.

2. Current opportunity zone tracts are proven. Future tracts are speculative.

The opportunity zone map we know today includes areas with demonstrated investor outcomes, infrastructure momentum and real market data — not theory.

A clear example is Scott’s Addition in Richmond, Virginia: a nationally recognized transformation story where opportunity zone investment has aligned with strong demographic trends, development activity and sustained demand.

By contrast, future opportunity zone legislation may introduce:

• new tract designations with unknown fundamentals
• unproven market performance
• uncertain timelines and implementation risk

In short: today’s tracts have track records. Future tracts have hopes and prayers.

3. Powerful tax advantages remain a cornerstone of QOF strategy.

Qualified Opportunity Zone Funds provide investors with:

• The potential for tax deferral on the investment that was sold and
• The potential for full exclusion of capital gains tax on appreciation, subject to holding periods and program requirements.

These benefits are a primary reason investors use QOF strategies to pursue long-term wealth creation while improving after-tax outcomes.

The Bottom Line

We believe the best opportunity zone outcomes are driven by timing, tract quality and execution.

In 2026, investors have access to:

• today’s market entry points
• known tracts with real performance history
• meaningful tax advantages and
• a strategic opportunity to grow wealth — and business — more efficiently.

Capital Square is committed to delivering institutional-quality real estate investment solutions, including Qualified Opportunity Zone Fund strategies, with disciplined underwriting and long-term alignment.

Is it time for you to take the next step?

Connect with Capital Square to explore how a Qualified Opportunity Zone Fund may fit into your tax strategy, portfolio objectives and long-term planning.

Disclosure

Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to sell any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative and illiquid. Diversification does not guarantee profits or protect against losses. FINRA Broker Check link: https://brokercheck.finra.org/.

The post A Window of Opportunity: Qualified Opportunity Zone Funds in 2026 appeared first on Capital Square - Raising capital, buildings and expectations.

Thank you to everyone who joined us in marking this important milestone for the Richmond community.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to sell any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative and illiquid. Diversification does not guarantee profits or protect against losses. FINRA Broker Check link: https://brokercheck.finra.org/.

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A Qualified Opportunity Zone Fund (QOF) is an investment vehicle designed to encourage long-term investment in economically distressed communities by providing significant tax incentives. Investors can receive substantial tax benefits, including deferral and potential exclusion of capital gains, if they invest in a development within a designated Opportunity Zone (OZ). These zones are low-income census tracts identified by the U.S. Treasury Department, and the goal is to spur economic development and job creation in these underserved areas.

When evaluating the quality of an Opportunity Zone tract, investors should consider several critical factors:

1. Location and Infrastructure: Areas near emerging business centers or planned infrastructure upgrades may provide greater upside potential. Proximity to major transportation hubs, access to utilities and the overall development potential of the surrounding area are essential.
2. Economic and Demographic Trends: Investors should analyze current economic conditions, employment rates and population growth within the zone. Favorable demographic trends, such as an influx of younger, skilled workers or rising median household income, could indicate long-term growth.
3. Risk and Reward: Developing new projects in Opportunity Zones presents additional risks from the development process along with a potential for higher returns. The challenges can be overcome by an experienced development team with an active process for assessing and mitigating risks.  Also, consideration of market volatility, the stability of nearby businesses and local government support for development can help mitigate risk.

Scott’s Addition in Richmond, Virginia as an OZ 1.0 Example

One example of a successful Opportunity Zone transformation is in Scott’s Addition, a once industrial neighborhood in Richmond, Virginia. Over the past decade, the area has experienced a dramatic revitalization, fueled in large part by Opportunity Zone incentives.

The neighborhood, which was historically home to warehouses and manufacturing plants, has become a trendy hub for tech startups, craft breweries, restaurants and apartments. This transformation has not only revitalized the local economy but also attracted significant private investment. However, as Scott’s Addition has grown more attractive to investors and experienced rising property values, it’s likely that it may no longer qualify as an Opportunity Zone in the near future. The neighborhood’s increasing affluence and its shift from a low-income to a more developed area could disqualify it from a future Opportunity Zone designation, when governors reassess opportunity zone tracts in 2026. This shift serves as a reminder for investors to consider how economic improvements could alter the status of an Opportunity Zone over time, affecting long-term investment strategies.

Capital Square has developed numerous mixed-use multifamily properties in Scott’s Addition’s opportunity zone; however, CSRA Opportunity Zone Fund IX may be one of the last opportunities to leverage the benefits of opportunity zone fund legislation within this economically transformed community with favorable location and infrastructure as well as a strong economic forecast for the years ahead – with Richmond, Virginia and its surrounding counties gaining over 52,000 people between 2020 and 2024, and showing no signs of slowing down.[i]

Changes in Opportunity Zone Legislation and Future Designations

In response to feedback from investors and local governments, new Opportunity Zone legislation signed into law in July 2025 will shift the eligibility of certain tracts. Future Opportunity Zones will reflect evolving priorities in urban and rural development, refining requirements of qualifying areas.

Investors must stay informed about both legislative changes and the evolving market landscape to make the best decisions for their portfolios.

Questions? Our team of opportunity zone experts are available to help. Contact us today.

[i] Karri Peifer, “Estimates show over 52,000 people moved to Richmond since 2020” Axios Richmond, February 5, 2025.

Always remember that each property is unique and past performance is no guarantee of future results.

Diversification does not guarantee profits or protect against losses.

Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short -term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative and illiquid.

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Skip to key moments within the video:

• What was the history of Scott’s Addition prior to opportunity zones? (jump to 0:05)
• How have opportunity zones reshaped neighborhoods and cities? (jump to 3:38)
• What has been the economic impact of opportunity zones? (jump to 4:16)

Learn more about opportunity zones:

• “Capital Square’s Opportunity Zone Transformations”
• “An Investment Case for Qualified Opportunity Zones: Program Analysis & Markers of Success”

Discover Capital Square’s newest qualified opportunity zone fund (QOF) offering:

• CSRA Opportunity Zone Fund IX, LLC

Contact the Capital Square team to continue the conversation.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative.

The post Impact Investing via Opportunity Zones: Jay Parsons & Whitson Huffman in Conversation appeared first on Capital Square - Raising capital, buildings and expectations.

Skip to key moments within the video:

• Why are opportunity zones so impactful for housing across the U.S., and why are we at a critical moment for the housing and construction market? (jump to 1:10)
• How do opportunity zones compare to other tax incentive programs? (jump to 2:43)
• How efficient are opportunity zone housing deliveries versus other development programs? (jump to 3:43)
• How is housing an issue that everyone can agree upon? (jump to 4:21)
• What are some of the hottest housing markets for investors in 2025? (jump to 5:00)
• How have opportunity zones boosted a new wave of developers? (jump to 7:25)

Learn more about opportunity zones:

• “Capital Square’s Opportunity Zone Transformations”
• “An Investment Case for Qualified Opportunity Zones: Program Analysis & Markers of Success”

Contact the Capital Square team to continue the conversation.

The post Opportunity Zone Summit Recap with Jimmy Atkinson & Jay Parsons appeared first on Capital Square - Raising capital, buildings and expectations.

Capital Square’s founder and co-CEO, Louis Rogers; executive vice president and co-head of development, Natalie Mason; and vice president of investor communications and REIT operations, Jessica Dodt-Escobar authored the article, titled “Four Cities, Four Opportunity Zones: Lasting Results of the 2017 Tax Cuts and Jobs Act Legislation.”

Read the full piece to hear their in-depth insights and analysis.

View PDF

The post Capital Square in the Novogradac Journal of Tax Credits: Four Cities, Four Opportunity Zones appeared first on Capital Square - Raising capital, buildings and expectations.

Discover the transformation:

Opportunity zones developments like these are one of our specialties, delivering significant economic impact to local communities while targeting the legacy-building goals of investors.

Contact our team to continue the tax-advantaged real estate investment conversation about qualified opportunity zone funds and more.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative.

The post Building the Future of Richmond’s Scott’s Addition appeared first on Capital Square - Raising capital, buildings and expectations.

“See that building?” Steele said to the room of women, pointing to the massive construction project only blocks away. “A woman is heading that up.”

MAEVE, a 20-story mixed-use tower across from the Convention Center in a thriving part of downtown, is changing the skyline of Raleigh. With 297 luxury apartment units and approximately 8,384 square feet of ground floor retail space, the project is Capital Square’s sixth opportunity zone development. Steele, a tax-advantaged investment specialist, was already quite familiar with the construction project. Seizing upon the interest in the room, she immediately contacted Natalie Mason, executive vice president and co-head of development at Capital Square.

Thus, the concept of the Pink Hat Tour was born.

Not long thereafter, a private tour of the construction site allowed ULI members, community leaders, resident representatives and investors an inside look at the spacious, double-height resident lobby leading to approximately 30,000 square feet of amenity space, as well as what would soon be a resort-style swimming pool and rooftop lounge. Capital Square team members, including Mason, led the tour, discussing the unique features of the building, including its proprietary precast façade system, as well as how MAEVE is being introduced to the market.

While the tour, and the connected educational real estate investment seminar, were open to all, the inclusion of pink hard hats gave a subtle nod to the many well-respected women leading the way. The naming of MAEVE itself had only recently been announced: a fresh yet refined brand identity with ascension at its core – offering the next chapter of upscale Raleigh living and an oasis away from the daily hustle, while the vibrancy of the city remains at residents’ doorsteps. MAEVE’s female name was not lost on the day’s audience.

“Natalie is brilliant and so easy to work with,” continued Steele. “In my world, I’ve worked with funds all over the country, and we love working with Capital Square. MAEVE is an incredible project.”

The pink hats may no longer be on site in Raleigh, but the impression they made was a lingering one. The Capital Square team is so grateful to Amanda Steele and the Crawford 1031 Advisors team for their partnership on this event as well as additional hosts W.M. Jordan Company and JDAVIS.

MAEVE is on schedule to welcome its first residents in early 2025 and is one more example of how we are developing and managing the future, one property at a time.

Disclaimer: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative.

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In short, due to inflated costs of labor and materials, new developments are stalling. Many projects are being frozen or terminated. Prohibitive finance costs are restraining new construction that was once booming when interest rates were low.

Paused and cancelled multifamily and single-family developments may not be felt immediately, but come late 2024, the housing crisis spurred by frozen construction during the Great Recession of 2008 will feel very real again. We are still several million housing units short from the Great Recession and will not catch up in the current housing cycle. This is very good news for owners of housing properties. We see an opportunity for existing and new investors to benefit from the next upswing in the housing market.

Headlines are beginning to tell this reframed story:

• “US Single-Family Housing Starts Fall Two Years in a Row” (CoStar, 7/10/24)
• “Multifamily Construction Permits are Down 30%” (GlobeSt., 7/11/24)
• “Starts and Permits Drop for Both Multifamily and Single-Family,” (Real Page, 7/1/24)
• “Behind Housing Starts’ Declining Numbers” (GlobeSt. 7/5/24)
• “U.S. Apartment Demand Surges in 2nd Quarter” (Real Page, 7/5/24)

Capital Square’s Response to the Headlines:

We’re ready for it. We know where opportunity resides, and it’s in housing. Multifamily, build-for rent (single-family) and manufactured housing communities answer both basic needs and lifestyle aspirations. They will remain solutions for those who cannot afford to buy a home or those who rent by choice for the benefits and flexibility a rental lifestyle can provide.

Investing in housing – whether through Delaware statutory trusts (DSTs), opportunity zone funds, development funds or a real estate investment trust – enables a qualified investor to seize the potential of this exceptional asset class. This isn’t a new belief or new means of doing business. Tax-advantaged real estate investment strategies are at the core of everything Capital Square has been, is now, or will become.

Our development team is also showcasing its distinction in the present environment. There are no pauses on Capital Square Development’s horizon. By seizing upon strategic pathways and innovative processes, Capital Square’s multifamily deliveries remain on schedule for 2025, 2026, and 2027 in metros including Raleigh, North Carolina; Knoxville, Tennessee; Phoenix, Arizona; and Richmond, Virginia.

Housing is a necessity. People need a place to live. The economy may shift and sway, and the real estate industry may have its fluctuations. Nonetheless, an investment in multifamily properties would have never lost money when made in any quarter since Q4 1977 in the National Council of Real Estate Investment Fiduciaries (NCREIF) unlevered property portfolio. In fact, the average annualized return was 9.4%.¹

At Capital Square, we raise capital, buildings and expectations. The complexities of the real estate market are manifold, but we believe the best is yet to come.

Contact Capital Square to learn more.

1. “The Golden Age of Multifamily,” Linneman Associates, LLC, 2022 (the “Linneman Report”). Linneman Associates, LLC is a consulting and research firm specializing in commercial real estate investment strategy and was compensated by Capital Square Realty Advisors, LLC for preparation of the Linneman Report. ︎

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At Capital Square, we begin by collecting data-driven and human-driven input, which we gather through research, observations and listening to our team members. With this knowledge and new understandings, we can discover paths to eliminate wasted time and effort. Even small modifications add up.

What does this concept look like in our everyday activities?

Our construction and development team efforts are one of the many places where we closely observe and analyze our processes, sharing and gaining new knowledge wherever we can:

• Tracking lead times and market trends
• Contributing within our areas of expertise while sharing roles and responsibilities to cross-train team members
• Using lessons learned as steppingstones to maximize the next development in the pipeline
• Building strong relationships with industry experts

With this data and the input of our team members immersed in our projects, we continue to empower ourselves in specific ways:

• Defining efficient time-flows for recurring meetings 
• Crafting standards of construction design that allow for the flexibility needed for building a custom, market-driven yet innovative product while eliminating wasted resources
• Standardizing vendor and purchasing arrangements to minimize uncertainty during design and construction as well as to ensure that the materials in our buildings surpass the end users’ expectations while maximizing investor returns
• Streamlining approvals and construction sequences
• Digging into the development process with a sense of urgency on the front end to ensure timely delivery

Some changes are dramatic. Some changes may seem modest, yet step by step they add up to something so much greater than where we would be without these initiatives. 

Our team is made of up of leaders and experts across myriad disciplines, and this is a tremendous advantage. We have the eyes and expertise to analyze not only the state of the real estate industry and our place within it; we have the eyes and expertise to continue our dynamic growth as a company. Listening to our team not only allows for a greater spread of ideas and efficiencies, but it also allows a true team to form with mutual respect and regard.

The philosophy of kaizen shares similarities with strategies like Six Sigma and 5S Lean, but kaizen is not just for the business world. Across-the-board excellence, in work and in life, cannot be achieved unless we are willing to continuously seek further understanding and to consider where we can do better – where we can be better. Continuous improvement never stops. 

That’s how we see it at Capital Square, and we look forward to seeing where this philosophy takes us next.

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