The Midway neighborhood in St. Paul holds a lot of family history for Adam Kado. He grew up and went to school in the area. His mom and brother worked at the former Midway Shopping Center. He attended bible studies and played basketball at nearby Central Baptist Church. So, it would make sense for Adam, a residential developer and co-owner of Slice Brothers Pizza, to want to own his own rental property in the Midway neighborhood.
“A lot of my properties are in Minneapolis,” he says. “When this opportunity came up to buy a property in the St. Paul Midway, it was a real full circle moment.”
The multi-family building on St. Anthony Avenue overlooks Interstate 94 and is within a few blocks of Allianz Field. Over the next few months, Adam plans to renovate all the current units, add an additional unit, upgrade electrical, plumbing and HVAC systems and replace the roof to make the building more energy efficient and sustainable.
Sunrise Banks provided financing from the U.S. Treasury’s Emergency Capital Investment Program (ECIP) to help Adam renovate the property. He also received financing assistance from the Ramsey Country Emerging and Diverse Developers (EDD) Program.
“The property needs a lot of work”
Adam says he was able to purchase the St. Anthony Ave. property for a good price because it was considered distressed. He knows it will take a lot of time and investment to bring it up to his standards.
“Luckily, I have experience with acquiring distressed properties,” he says.
Adam bought his first rental property, a duplex in North Minneapolis, in 2021. He quickly learned that trying to crunch the numbers and make a profit off it would not be as cut-and-dry as he first thought.
“A developer is like a point guard in basketball,” Adam explains. “A coach can draw up a great play on paper, but without experience executing in live play, it just looks good on paper. In development a property can look good on paper, but without proper execution in understanding the story behind the numbers, it’s only a good deal on paper.”
Adam admits it was a struggle to get his first duplex ready for renters. A lot of things didn’t go the way he had planned when it came to making repairs and upgrades. And he says he felt like he had failed when he didn’t make as much money as he had hoped.
Looking back at the time, “I'm thankful for the experiences,” he says. “But when I was going through them, I regretted ever even becoming a landlord. However, I’ve learned that losses can be turned into lessons, and I’m glad I never quit.”
Adam now owns a total of 16 rental units within five different properties. That will go up to 17 units once he adds a sixth unit onto the St. Paul complex.
Cohort Connections
Adam regularly networks with other developers involved in the Ramsey County Emerging and Diverse Developers (EDD) program. The group offers individual and group learning opportunities for developers who own 25 or fewer units interested in creating affordable housing and community development opportunities within Ramsey County. Through that program, Adam was awarded a grant to help fund both part of the purchase price and the closings costs on the St. Anthony Ave. property.
Adam also met Mary Stoick, Senior Vice President and Director of Tax Credit Lending at Sunrise Banks, through one of these EDD meetups. It’s also where he learned about Emergency Capital Investment Program (ECIP) funding.
ECIP is a federal program that facilitates Certified Community Development Financial Institutions, such as Sunrise Banks, to increase their lending and other investments in low-to-moderate income communities to qualify for a lower rate they pay on U.S. Treasury Investments.
Mary worked with Adam to secure ECIP money to help pay for the rest of the complex.
“This is one of my favorite parts of my job – being a resource and sharing information about banking with business owners and investors who have big ideas and big dreams to grow their businesses, invest in their neighborhoods, and make their community better,” says Mary. “This is Sunrise Banks at its best, and ECIP is making that even more possible.”
“Mary is amazing,” Adam says. “Forging a relationship with a commercial lender is imperative, and I’ll always give Mary and the team at Sunrise their flowers for their diligence on this project.”
Ready for Revitalization
The work to revitalize the St. Anthony Ave. property is just getting started. One of Adam’s goals is to make the property more sustainable. He wants to invest in energy-efficient building materials and appliances, low-flow water fixtures and low-VOC paint. He hopes that it will lower energy costs enough to make the units more affordable for his renters.
Adam hopes to do both new construction and revive existing properties as he grows his development business. One of the lessons he learned early on is to not rush the process.
“I’ve had situations where I’ve tried to scale my properties too fast,” he says. “So, I’ve learned to focus on what I’m doing in the moment. What I'm doing right now is enough.”
“Banking can be intimidating and confusing and complex – whether you’re buying your first house, starting a business, or, like Adam, expanding a rental property portfolio,” says Mary. “When your bank offers not just loans, but also resources, connections, and creative solutions – that can make all the difference. The dream becomes possible.”
Learn about ECIP and other strategic financing options available at sunrisebanks.com.
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