- Must be in approved Minnesota Opportunity Zone census tract.
- Must meet criteria for eligible projects including new construction or substantial rehabilitation.
- Minimum total project cost of $2M; maximum of $25M, or 33% of Fund.
- Open to investment across Minnesota. Focus efforts on Twin Cities/suburbs, Duluth, St. Cloud areas.
- Commercial properties only, with target of 50-60% Residential.
- Securities exemption requires fund invests in real estate. Not able to invest in businesses.
- Target fund IRR range of 7 – 11% depending on project risk.
- Combination of economic, social, and environmental returns factored by committee.
- Project approval requires unanimous committee vote.
- Properties with favorable population density and increasing populations will be prioritized.
- Debt on properties to be no more than 65% of project costs.
- Local partners require minimum of 1% of equity position in project
- Local partners to be fully vetted for expertise, reputation, financial capability, etc.
- Local partners to be approved with majority of 3 of the 5 members voting in favor.
To discuss equity financing your project please contact Loren Schirber at Loren@MN-OZA.com or call 612-501-0358 .