CapStone Invests $10M in Minnesota Opportunity Zone Luxury Apartment Complex
The 152-unit apartment complex has studio, one-bedroom and two-bedroom options that are 65% leased.
A private equity firm just made a $10 million investment in a new luxury apartment complex in one of the hottest housing markets in Minnesota.
CapStone Holdings is now one of the largest investors in the Robbinsdale, Minnesota, apartment project, Birdtown Flats. Birdtown opened in February 2020. Less than a month later, the coronavirus and social distancing rules challenged the new apartment complex.
Covid-19 had a devastating effect on a lot of the commerce in Minnesota and around the country, making operations and securing new tenants difficult. Yet, Birdtown has attracted buyers through its desirable units since its opening.
The apartment complex has studio, one-bedroom and two-bedroom units, according to a press release. Owners of these units have access to a fitness center, business center, underground heated parking, bicycle storage area and a rooftop deck.
Birdtown is situated in a desirable location. The luxury apartment complex is within walking distance to quaint shopping and dining options in the downtown area of Robbinsdale. Right now, the 152-unit apartment complex is 65% leased.
CapStone just allocated money from its Stone Opportunity Fund to purchase a piece of the apartment project. The investment by the company falls within one of Minnesota’s first completed opportunity zones. The Internal Revenue Service says opportunity zones, typically in economically distressed communities, are prime candidates for preferential tax treatment under certain conditions.
Keith J. Stone, the CapStone Holdings chairman and founder, is pleased by his company’s recent acquisition.
“The Birdtown Flats investment is another ideal opportunity for CapStone,” Stone said. “The area is undergoing tremendous redevelopment, plus this project was assembled and completed by an outstanding team.”
Part of the “outstanding team” in this project is The Beard Group, in association with NAI Legacy, who are the property developers. Minneapolis-based CliftonLarsonAllen Wealth Advisors provided help in raising capital for the project.
CapStone is a family office structured holding company that provides investment capital and underwriting for a variety of projects. These include in real estate, global technology businesses, along with high growth opportunity tech and fin-tech startups.