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
REDEVELOPMENT PLAN
TARGET MARKET
EXCELLENT
LOCATION
COMMUNITY
GARDEN
Project Overview
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
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