We study the phase diagram of a square lattice Hubbard model with a perfect vacancy superstructure. The model can be also defined on a new bipartite lattice with each building blocks consisting of a minimal square. The non-interacting model is exactly solved and a mid-band gap opens at the Fermi energy in the weak inter-block hopping regime. Increasing the Coulomb interaction will develop the N'eel antiferromagnetic order with varying block spin moments. The metal-insulator transition with smaller than the one without vacancies occurs above the magnetic instability . The emergent intermediate magnetic metal phase develops substantially in the moderate inter-block hopping regime. Drastic increases in the ordered moment and gap magnitude on the verge of non-interacting band insulator signal a possible distinction between the magnetic semi-conductor and the Mott-insulator. The implications of these results for the recent discovered (A,Tl)FeSe compounds are discussed.

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