Papillon Fund is a single-property syndicated real estate fund centered around the Papillon Towers Development in Spokane, WA's North Bank Neighborhood.

The integrated, shovel-ready project will boast a mid-rise tower, a high-rise tower, a parking podium, and encompass nearly 500,000 sq ft offered. If you're an investor, looking to leave a legacy NOW, the Papillon Towers is the project for you.

The Papillon development is one of the last remaining rare and undeveloped private properties in Spokane's North Bank neighborhood. 

  • Selkirk Development has determined there is substantial unmet demand for modern office (Class A), retail, hospitality, and event spaces; significantly in mixed-use configurations like the Papillon Towers

  • Papillon Towers is in a unique position to take advantage of proximity to other significant public venues and amenities

    • Spokane Veterans Memorial Arena

    • North Bank Regional Playground (opening 2020)

    • Spokane Regional Sportsplex (opening 2021)

    • Newly renovated Riverfront Park

    • First Interstate Center for the Arts

    • Kendall Yards 78-acre Urban Neighborhood

  • Over $140 million of planned and recent public investment in neighboring properties; allowing investor access to a desirable investment in a rapidly growing neighborhood.
  • As a developer of rare and unique urban spaces, Selkirk focuses on quality mixed-use properties with a holistic approach to enhance the neighborhood.
We offer the best space, in the best community, to the best tenants!  WE RAISE THE BAR.

CONTACT US TO LEARN MORE

Media

Raising the Bar & the Skyline
Nov 14 2019

The opportunity zone program lets investors roll over capital gains from other investments into an opportunity zone fund, allowing those investors to avoid capital gains taxes for a decade.

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Renovations Underway
Jan 12 2020

Papillon Building LLC has filed plans with the city to install a kitchen, fixtures and tables for the Outsider restaurant, by Chef Ian Wingate. Outsider restaurant is to be the first tenant in the $80 million Papillon Towers development.

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Attractive to Out of Towners
Feb 14 2020

The city is currently the most competitive housing market in the country. Spokane has all of the basics you would want in a city, but at a great price.

Read More

At A Glance

  • Located in Spokane, WA - North Bank Neighborhood

  • 6-Story Mid-Rise

    12-Story High-Rise with Parking Podium

  • Conservative Projection of 14.68% IRR; 2.38x Equity Multiple

  • December 15, 2019: Officially accepting funds

  • $30 Million Fund Size

Income Distribution Waterfall

Extended Income Distribution Flow Chart

Tax Advantaged Benefits

One of the benefits of the Papillon Fund is its tax advantaged status to qualified investors. OZ benefits are available to individuals and organizations that have recognized capital and 1231 gains within 180 days of fund closing date. The Papillon Fund is a mixed fund, allowing investment of both Opportunity Zone qualifying investments and non-Opportunity Zone qualifying investments.  

By many of the metrics, Papillon Towers should not be considered OZ, but instead is the perfect culmination of locale, community effort toward improvement, and connectivity. Our team will help you determine if Opportunity Zone tax benefits are available to you.


 What are the Benefits of Opportunity Zones?

    Defer Capital Gains
  • Capital gain taxes on disposed of investment are deferred up to 2026

    Tax Reduction of

    Capital Gains

  • Capital Gains are reduced by 10% if gain money is invested for 5 years. Gains are reduced an additional 5% if gain money is invested for 7 years
  • Cutoff date for 10% reduction: December 31st, 2021

   Note: Assumes that no acceleration event has occurred

    Tax Elimination
  • The most substantial tax incentive offered.  If investments in opportunity zone fund are held for at least 10 years and interest in qualified opportunity zone fund is sold, all taxes on gains from the sale of that interest are eliminated
  • After 10 years, if interst in opportunity zone fund is sold, tax basis will be adjusted to fair market value at disposition

MORE ABOUT OPPORTUNITY ZONES

Term Sheet

First Closing Date

  Dec 15, 2019 (accepting funds)
Fund Size   $30 Million
Total Construction Value   $76 Million
Target LTC %   65%
Minimum Investment   $500,000 (may be adjusted on a case by case basis)
Investment Period   10 years + (4) 1-year sponsor options
Management Fees   2% 2020, 2% 2021, 1% 2023
Hurdle Rate   8%
Catch Up   50%
Carried Interest   30%

Conservative Projection vs. Demand Driven Trend 

Contact Us to Learn More?


Legal Disclaimer

These materials are not intended as an offer to sell, or the solicitation of an offer to purchase, any security. Any investment will be made pursuant to a subscription agreement accompanied by risk factors. These materials contain preliminary information that is subject to change and that is not intended to be complete or to constitute all the information necessary to adequately evaluate the consequences of investing in securities of the company. Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by the company or as legal, accounting or tax advice.  

The securities referenced herein have not been registered under the Securities Act of 1933, as amended, or the securities laws of any state. Neither the Securities and Exchange Commission nor any state commission has reviewed or passed on the accuracy or adequacy of any matter set forth herein and any representation to the contrary is unlawful.  

An investment in securities of the type described herein presents certain risks. Before making a decision to invest in any securities of the company, a prospective investor should review the risk factors that accompany the subscription agreement and consult with his, her or its own legal, accounting, tax and other advisors in order to independently assess the merits of such an investment.  

These materials contain information about the company’s manager, certain of its personnel and affiliates and the historical performance of other ventures managed by the manager or its affiliates. This information has been supplied to provide prospective investors with information as to its general management experience. Prospective investors should not view the past performance as indicative of the company’s future results.  

These materials also contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts or estimates of cash flows, yields or returns, scenario analysis and proposed or expected asset composition. The forward-looking information contained herein is based on certain assumptions about future events or conditions and is intended only to illustrate hypothetical results under those assumptions (not all of which will be specified herein). Actual events or conditions are unlikely to be consistent with, and may differ materially from, those assumed. In addition, not all relevant events or conditions may have been considered in developing such assumptions. Accordingly, actual results will vary and the variations may be material. Prospective investors should understand such assumptions and evaluate whether they are appropriate for their purposes.  

Distribution of this information to any person other than the person to whom this information was originally delivered and to such person's advisors is unauthorized and any reproduction of these materials, in whole or in part, or the disclosure of any of their contents, without the prior consent of the manager is prohibited. These materials are not intended for distribution to, or use by any person or entity in any jurisdiction where such distribution or use would be contrary to local law or regulation. These materials have been approved for distribution only to persons who are “Accredited Investors” (as defined in Regulation D under the Securities Act of 1933, as amended). Transmission of this communication to any other person is unauthorized.

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