Inland Private Capital Corp. (IPC) announced that its first private placement offering by a qualified opportunity zone fund, Saint Paul Opportunity Zone, was fully funded and is no longer accepting new investors.
The fund acquired approximately 2.3 acres of land in downtown Saint Paul, Minn., for $5 million in August 2019. The site comprises two contiguous parcels, commonly referred to as the Seven Corners Gateway Site, which was previously a parking lot for downtown commuters.
The fund, through its affiliated entities, plans to develop a 120-room hotel, operated under a nationally recognized brand, and a six-story, 144-unit apartment community. Twin Cities–based Kaeding Development Group has been engaged as the developer for the project. Both the hotel and apartment community will include retail and dining options on the first floor, and several commercial tenants have already expressed interest in leasing the spaces.
The fund has raised more than $30 million in equity from investors and intends to secure a construction loan for the development. The fund anticipates the development will have a total project cost of approximately $66 million.
“We were thrilled to launch our qualified opportunity zone platform, or QOZ, with Kaeding, a strategic partner we have worked with in the past, to acquire an infill development site that benefits from such a wide range of demand drivers,” said Keith Lampi, president and COO of IPC. “IPC’s QOZ platform is unique in contrast to many of the blind pool funds that have recently hit the market, as it is designed to provide investors access to specific development projects on a project-by-project basis.”
The Seven Corners Gateway Site is ideally positioned directly across from the Xcel Energy Center arena, home of the Minnesota Wild National Hockey League team, as well as the Saint Paul RiverCentre, the city’s convention center for special events and entertainment. The development project, once complete, will serve as an additional amenity to the already heavily developed immediate area, which includes retail, dining and entertainment options for both residents and visitors of downtown Saint Paul.
“We are excited to bring this urban, mixed-use development to the Gateway Site,” said Carl Kaeding, founder and CEO of Kaeding. “The development location is the best in St. Paul and is in the heart of our backyard. We have been developing throughout the Midwest for over 27 years, most recently opening the Residence Inn by Marriott in Downtown St. Paul.”
