A new real estate investment fund aimed at accelerating downtown redevelopment has launched with $30 million already committed, marking a significant private-sector bet on the future of the capital city’s core.

The newly formed St. Paul Downtown Investment Fund is managed by the St. Paul Downtown Development Corporation (SPDDC), a real estate-focused subsidiary of the Saint Paul Downtown Alliance. Lead investors Securian Financial and the Bush Foundation have jointly committed the initial $30 million.

SPDDC leaders say the mission-driven capital fund is designed to improve access to financing for commercial, residential and mixed-use projects intended to support the long-term revitalization of downtown St. Paul.

“Downtown St. Paul isn’t just where Securian Financial has been headquartered for more than 145 years — it’s an essential part of who we are as a company,” said Securian Chairman, President and CEO Chris Hilger in a statement.

Fund priorities include office-to-residential conversions, pedestrian-oriented streetscape improvements, historic preservation work, job creation and efforts to expand opportunities for minority- and women-owned businesses. The initiative also aims to address substandard property conditions and increase housing supply downtown.

According to SPDDC, the fund has already supported several major downtown property transactions, including the Alliance Bank Center, Capital City Plaza parking ramp, Empire Building, Endicott Arcade and the U.S. Bank Center mortgage note.

SPDDC President Dave Higgins called the fund “a critical step” in encouraging broader market investment in the central business district.

The fund is part of the broader Reimagine Downtown St. Paul engagement effort, which is gathering community input on the future of the city’s core.

Learn more at downtownstpaul.com/reimagine.