Keith Lampi, president and chief operating officer of IPC
ST. PAUL, MN—Inland Private Capital Corp. of Oak Brook, IL, reports it has closed its first private placement offering by a "qualified opportunity fund," Saint Paul Opportunity Zone, L.L.C. and will move forward with a mixed-use project at the Seven Corners Gateway site here.
The Saint Paul Opportunity Zone, L.L.C. is fully funded and is no longer accepting new investors. The fund acquired approximately 2.3 acres of land in Downtown Saint Paul 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 functioned as a parking lot.
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 at the site.
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 that the development will have a total project cost of approximately $66 million.
Twin Cities-based developer, Kaeding Development Group, LLC is 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, Inland Private Capital reports.
"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," says 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 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.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
