Inland raises $28M to convert a St. Paul office tower into 178 apartments
What's the deal? Inland Real Estate Investment CorporationDealroom has a profile for this one. Try Dealroom → has closed an equity raise of about $28 million for Office Conversion Opportunity Zone, LLCDealroom has a profile for this one. Try Dealroom →, a private vehicle sponsored by an affiliate of Inland InvestmentsDealroom has a profile for this one. Try Dealroom →. The offering is fully subscribed and now closed.
What's the endgame? The fund holds an approximately 89% stake in a 16-story building at 386 Wabasha Street North in downtown St. Paul, Minnesota. The historically office property is being redeveloped into a multifamily community of 178 apartments, plus about 2,338ft² of street-level retail.
Who's involved? Kaeding Development GroupDealroom has a profile for this one. Try Dealroom → is the development partner, and R.E.C., Inc., doing business as Ron Clark Construction & DesignDealroom has a profile for this one. Try Dealroom →, is the general contractor. Bader ManagementDealroom has a profile for this one. Try Dealroom → will run the property once the residential and retail components are delivered.
Why now? The vehicle is structured to qualify as a Qualified Opportunity Fund, organized to meet Opportunity Zone requirements. With the raise closed, the equity portion of the ownership entity's capital stack is in place to fund the conversion.
The signal: The deal reflects the growing push to repurpose underutilized downtown offices into housing, using Opportunity Zone incentives to draw private capital into urban core redevelopment.
Read more: cremarketbeat.com
Image credit: w_lemay
