Oak Brook, Ill. – Inland Private Capital Corporation (“IPC”) today announced that its first private placement offering by a “qualified opportunity fund,” Saint Paul Opportunity Zone, L.L.C. (the “Fund”), was fully funded and is no longer accepting new investors. The Fund acquired approximately 2.3 acres of land in downtown Saint Paul, Minnesota, for $5 million in August 2019. The site is comprised of two contiguous parcels, commonly referred to as the Seven Corners Gateway Site, which was previously functioning as 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 developer, Kaeding Development Group, LLC (“Kaeding”), 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 over $30 million in equity from investors and intends to secure a construction loan for the development. The Fund anticipates that the development will have a total project cost of approximately $66 million.
“We were thrilled to launch our qualified opportunity zone, or QOZ, platform 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 chief operating officer 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 chief executive officer 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.”
About Inland Private Capital Corporation
Inland Private Capital Corporation (IPC), headquartered in Oak Brook, Ill, is a privately held, industry-leading alternative investment management firm, with an investment focus spanning across a broad range of asset types. As of September 30, 2019, the firm had sponsored 248 private placement real estate offerings, with investments and developments in the multifamily, self-storage, hospitality, healthcare, student housing, retail, corporate office and industrial sectors. Many of IPC’s offerings have been designed for investors seeking replacement property to complete an IRS Section 1031 exchange. IPC is recognized as the largest provider of securitized 1031 exchange opportunities in the country, with a national footprint of more than 600 properties, representing approximately $7.7 billion in assets under management as of September 30, 2019.
About Kaeding Development Group, LLC
Kaeding Development Group, LLC (Kaeding), headquartered in Bloomington, MN, is a privately held, development company, with experience in a multitude of property types, having a primary focus in the Hospitality sector. Starting with a small set of apartment buildings in 1974, Kaeding has grown to master developers of large commercial structures throughout the Midwest. The firm provides expertise ranging from site selection advisement early in the process and project construction to property management upon opening, through their affiliate Compass45 Hospitality.