Inland Real Estate Investment Corporation said its Office Conversion Opportunity Zone, LLC — a vehicle structured as a Qualified Opportunity Fund — has completed an approximately $28 million equity raise and is fully subscribed. The fund holds about 89 percent of a 16-story building at 386 Wabasha Street North in downtown St. Paul, inside a currently designated qualified opportunity zone, and is converting the underused office tower into 178 apartments plus about 2,338 square feet of street-level retail. The community will be called The Stella. Inland is partnering with Kaeding Development Group (development), Ron Clark Construction & Design (general contractor), and Bader Management (property manager); the raise is Inland's sixth project with Kaeding. CEO Matthew Fries framed the conversion as a response to softening office demand and downtown St. Paul's housing need. The project also uses historic tax credits. The building sits on the Saint Paul skyway and near light rail and Union Depot.
Original reporting by Daniel Cho for Opportunity Zone Invest, an independent OZ 2.0 research site. Facts are drawn from the primary sources cited above per our editorial standards. Nothing here is tax, legal, or investment advice.
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