The property, in a suburb of Minneapolis, will feature 265 apartments and office space — and will also serve as the new city hall for Columbia Heights.
CliftonLarsonAllen Wealth Advisors, LLC, has secured $23 million in Opportunity Zone funding for a mixed-use development located in Columbia Heights. The project will combine 265 market-rate apartments and 20,650 square feet of office and meeting space that will serve as the new city hall for Columbia Heights, an inner-ring northern suburb of Minneapolis.
The project is slated for a city-owned property in the southeast quadrant of Central Avenue and 40th Avenue Northeast, and aims to revitalize the north-metro community. With a total project cost of $60 million, the six-story building is set to open in the first quarter of 2022.
Alatus LLC, a leader in multi-family, mixed-use, commercial, and single-family residential real estate development, is spearheading the project. Bob Lux, Alatus principal and founder, worked closely with CLA to secure funding.
"Alatus is excited to be developing a new, state-of-the-art residential mixed-use project in an Opportunity Zone in partnership with the city of Columbia Heights,” said Lux. “This project is in the heart of Columbia Heights, a northeast first-tier Minneapolis suburb, and will act as a catalyst for the continued revitalization of this section of the Twin Cities for years to come.”
While CLA was instrumental in the capital raise, the firm also provided tax advisory and compliance services, financial model development support, consultations on structure, and guidance on Opportunity Zones.
“CLA provided invaluable support in helping raise approximately $23 million of equity capital for the project as well as assisting Alatus on the construction of senior financing,” said Lux. “Alatus and team members are grateful for the opportunity to collaborate with and contribute to the success of this community.”
A national leader in the Opportunity Zone space, CLA combines deep experience in the real estate industry, tax, and investment management services to offer stakeholders broad insight into the full benefits of the Opportunity Zone program. In 2019, the firm raised $350 million for Opportunity Zone projects.
“CLA is pleased to have the opportunity to work with a high-caliber developer like Bob Lux and his team at Alatus,” said Tony Hallada, managing principal with CLA Wealth Advisors, who oversaw the capital raise. “Projects like this one can revive suburban areas, as well as contribute affordable housing options to Minneapolis, which is currently experiencing a housing shortage."
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