Inland Closes $28M OZ Fund for St. Paul Conversion
Inland Real Estate Investment Corp. has completed an approximately $28 million equity raise for a qualified opportunity fund converting an underused downtown St. Paul, Minnesota, office building into apartments.
Office Conversion Opportunity Zone LLC has been fully subscribed and is closed to new investors. The private investment vehicle is sponsored by an affiliate of Inland Investments and structured as a Qualified Opportunity Fund.
The fund holds an approximately 89% ownership interest in the 16-story property, which is located within a federally designated opportunity zone. The redevelopment will create 178 apartments and approximately 2,338 square feet of street-level retail space. The completed community will be called The Stella.
“The fund strategy reflects our commitment to identifying high-quality investments that respond to evolving market dynamics, particularly as demand for traditional office space continues to shift,” said Matthew Fries, CEO and president of Inland Investments.
Kaeding Development Group is serving as development partner, while Ron Clark Construction & Design is the general contractor. Bader Management will manage the property.
The fund marks Inland’s sixth project with Kaeding, including four ground-up developments or adaptive-reuse projects.
Inland recently raised $83.6 million for Union Multifamily DST, $71.7 million for Inland Jersey City Multifamily DST, $120 million for Wheaton Multifamily DST and $149 million for National Senior Living Portfolio DST.
Inland member companies have facilitated more than $56 billion in acquisitions and currently manage approximately $16 billion of assets.
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