Inland Real Estate Investment Corporation has completed an equity raise of approximately $28 million for Office Conversion Opportunity Zone, LLC, a private real estate investment vehicle structured to qualify as a Qualified Opportunity Fund and sponsored by an affiliate of Inland Investments. The offering for this vehicle has been fully subscribed and is now closed.
The fund holds an approximately 89 percent ownership interest in a 16-story building located at 386 Wabasha Street North in downtown St. Paul, Minnesota. The property, historically used as an office building, is described as underutilized and is now being redeveloped into a multifamily residential community. Upon completion, the repositioned asset is planned to include 178 apartment units along with approximately 2,338 square feet of street-level retail space.
The redevelopment is being undertaken through a partnership that brings together several specialized firms. Kaeding Development Group LLC is serving as the development partner on the project, overseeing the execution of the conversion from office to multifamily and coordinating the broader redevelopment program. Construction responsibilities have been assigned to R.E.C., Inc., doing business as Ron Clark Construction & Design, which is acting as the general contractor for the building overhaul and associated improvements.
On the operations side, Bader Management, Inc. has been engaged as the property manager for the future multifamily community. This assignment positions Bader Management to handle day-to-day property operations once the residential and retail components are delivered and occupied, including resident services, maintenance, and oversight of the street-level retail space, as directed by the ownership group.
The building’s location in downtown St. Paul places the project within the urban core of the city, and the Qualified Opportunity Fund structure indicates that the investment vehicle is organized to meet applicable Opportunity Zone requirements. With the equity raise now closed and the fund fully subscribed, the capital stack for the ownership entity’s equity portion is in place to support the ongoing office-to-residential conversion and the addition of ground-floor retail space at the 16-story property.
