Objectives
Provide affordable family housing for new American families, foster community integration, and be a small solution to an affordable housing crisis in the U.S. and Minneapolis.
Redeveloping + reimagining new American communities
Founded in December 2021
Our Mission
Our mission is to provide safe, clean, affordable family housing to New American families, foster community integration, and be a small solution to an affordable housing crisis in the U.S. and Minneapolis.
Objectives
Provide affordable family housing for new American families, foster community integration, and be a small solution to an affordable housing crisis in the U.S. and Minneapolis.
4 Stories
13 Units
MULTI-FAMILY
BUILDING
Family Focused
All Units
3+
BEDROOMS
COMPELLING
DESIGN
Property Details
2900 block of Grand Ave South
REDEVELOPMENT PLAN
Converting 1 single-family home and 1 duplex into a 13-unit multifamily building
TARGET
MARKET
Focused on new American families in need of affordable housing
EXCELLENT
LOCATION
COMMUNITY
GARDEN
Project Overview
BENEFITS TO IMMIGRANT COMMUNITIES
Live in safe, affordable, family COMMUNITY
orientated housing
Provide a stable foundation for
pursuing a new life
Access to essential services
(schools, transportation,
healthcare)
BENEFITS TO Community
Investment in new,
innovative housing
Part of a solution to an
affordable housing crisis in
the United States.
Development Team
Floor Plans
LEVEL 1
level 2-4
Development Cost
USES + SOURCES
Uses
Land
$885,000
Soft Costs
1,081,377
Hard Costs
4,880,611
Total Uses
$6,846,988
Sources
Financing
$4,346,988
Cultivate Equity
$2,500,000
Total Sources
$6,846,988
PROJECTIONS
Stabilized Annual Rent
$280,000
Expenses
150,000
Net Operating Income
130,000
Yield on Cost
1.90%
Investment Opportunity
OPPORTUNITY
Cultivate is seeking $4 million of friendly financing to complete an innovative, life-changing, problemsolving development.
Cultivate has raised $1 million of the
$4 million
STRUCTURE
Currently, Cultivate anticipates a 10-year, low-interest rate loan with one 5-year extension option.
Structure remains negotiable
and flexible depending on
needs of capital partners
EQUITY
Cultivate already owns the site
and will contribute the land
and an additional $1.6 million
in equity
Cultivate History
-
August 2021: USA withdraws from Afghanistan conflict. Rapid Taliban takeover of government creates significant refugee crisis for thousands of Afghans who assisted the U.S. military
-
December 2021: Cultivate Capital LLC (“Cultivate’) is formed to provide housing to incoming Afghan refugees
-
April 2022: Cultivate begins working with the International Institute of Minnesota to assist IIM in supporting new Americans from Afghanistan
-
April 2022: First homes are acquired – the portfolio is comprised of 9 buildings, with 14 units. July 2022: Cultivate begins design of 100+ unit building with low income and market rate units on Grand Avenue
-
2023: With interest rates rising and inflation taking a toll on construction costs, Cultivate puts re-development on hold
-
2023: Cultivate enters a Letter of Intent with a local affordable housing developer to enter into a joint-venture to develop the Grand Avenue project
-
2024: Cultivate houses approximately 50 new Americans from Afghanistan, Democratic Republic of Congo, Syria and Mexico
-
2024: The affordable housing developer cancels LOI due to its internal financial difficulties
-
2024: Cultivate rationalizes re-development to a smaller project and decides to pursue on its own based on the continued need for affordable family housing for New Americans. This smaller project utilizes 2 of the Grand Ave Properties with 3 Units with replaced by a 4 story 13-unit building
-
2025: Cultivate begins capital raising for the development and hopes to break ground in the second half of 2025