Inland Raises $28M for 178-Unit Office Conversion in Downtown St. Paul
Inland Real Estate Investment Corporation has completed a $28 million equity raise for a qualified opportunity fund created to convert a 16-story office building in downtown St. Paul, Minn., into apartments, the company said Aug. 19.
The offering, sponsored by an affiliate of Inland Investments for Office Conversion Opportunity Zone LLC, is fully subscribed and closed, according to the company.
The fund holds an approximately 89% ownership interest in the building at 386 Wabasha St. N., which sits in a census tract designated a qualified opportunity zone under the Internal Revenue Code. The property is being redeveloped from office space into 178 apartments and approximately 2,338 square feet of street-level retail space. The finished project will be known as The Stella.
“The fund strategy reflects our commitment to identifying high-quality investments that respond to evolving market dynamics, particularly as demand for traditional office space continues to shift,” said Matthew Fries, chief executive officer and president of Inland Investments. “The Stella represents a strategic repositioning of a historically significant property into a modern residential asset designed to meet growing demand for urban living while contributing to the continued revitalization of downtown St. Paul.”
The Minnesota project is Inland’s latest opportunity zone conversion deal; in November 2025, the company completed a 110,000-square-foot self-storage redevelopment in Camden, N.J., through its roughly $100 million Self-Storage Qualified Opportunity Fund LLC with partner Devon Self Storage.
The Stella is expected to include a fitness center, a rooftop deck with grilling stations, a spa room with an outdoor jacuzzi, and clubhouse and lounge space. Units are designed with quartz or granite countertops, stainless steel appliances, in-unit washers and dryers, and 9-foot ceilings.
The property is near the region’s light rail line and Union Depot. Inland described the site as close to employment hubs, dining, entertainment, and cultural amenities. It also connects directly to the Saint Paul Skyway System, a climate-controlled pedestrian network spanning more than five miles across downtown.
The redevelopment is being handled by Kaeding Development Group LLC as development partner, R.E.C. Inc., doing business as Ron Clark Construction & Design, as general contractor, and Bader Management Inc. as property manager. The Stella is the sixth project Inland and Kaeding have undertaken together, four of which involved ground-up development or adaptive reuse. Historic tax credits and other financing sources also contributed to the project’s capitalization, according to the company.
Earlier this summer, Inland Real Estate Group named Matthew Beverly head of asset management, adding a real estate operating executive with more than 20 years of experience. Beverly oversees Inland’s asset management strategy across its investment platforms and reports to the company’s executive leadership team.
Inland Investments, based in Oak Brook, Ill., is a real estate investment manager focused on tax-advantaged real estate offerings across the commercial real estate market. It is a member of The Inland Real Estate Group of Companies. Inland member companies have completed more than $56 billion in acquisitions since inception and manage a real estate portfolio of approximately $16 billion, according to the company.
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