OUR PAST DEALS
Spirit Arms
We've recently orchestrated one of our most ambitious and creative ventures—a modern 32-unit property built in 2013. What sets this deal apart is our innovative financing strategy and the impressive built-in equity of over
$2 million at purchase. Utilizing a combination of seller financing and private debt, we acquired this asset with a 100% loan-to-cost ratio, which impressively still stands at just 55% of the property's most recent appraised value.
But we didn't stop there. The building was only 50% occupied at the time of acquisition. Given the 9-month term on our private debt, we swiftly optimized operations. We've successfully increased occupancy by welcoming 16 new tenants, adjusting rental rates to market levels, and implementing pet fees where applicable. On the expense side, we've negotiated new contracts for utilities and revamped the asset management approach, leading to significant operational savings and a higher valued building than when we purchased it, leading to even more built-in equity.
The asset was previously a condo building with third party condo management, caretaker, and property management. Since closing, we have conducted a strata wind-up to consolidate the 32 titles to just one exclusive title on the asset. This eliminated the applicable condo-related contracts and prepared for property taxes to be reassessed for the 2024 calendar year which is expected to yield an approximate 30% decrease in its annual amount.
Since the acquisition, we have secured an institutional bridge loan to pay out the private debt we used to close on the asset. This will give us an additional 24 months to optimize the asset further before we transition to preferred debt financing through CMHC, allowing for another equity take-out.
This is more than just a deal; it's an opportunity for savvy investors and real estate professionals to be part of a meticulously planned and expertly executed investment strategy.
The Lawrence
In another remarkable deal using a seller financing strategy and relationship building with the previous owners, we were able to close on this 15-unit building at $300,000 below the listing price.
Within six months of closing, we successfully refinanced the property through CMHC's MLI Select program. This strategic move allowed us to pay out the existing debt, including the seller financing and it unlocked over $200,000 in an equity take-out. This building now provides a healthy monthly cash flow allowing us to maintain the property to our high standards.
Main
In a private sale, we acquired a 6-plex that presented a unique value-add opportunity. Our market analysis revealed that the units were rented at approximately $200/each below market value. To unlock this asset's full potential, we have initiated a series of cosmetic upgrades coupled with natural tenant turnover. These steps are part of a broader strategy to optimize the asset for maximum revenue. In addition, we've invested in a new boiler in 2023 to ensure the asset's long-term performance and enhance tenant retention.
But, we're not stopping there. Future plans include separating the utility meters, allowing us to transfer electricity costs to the tenants. This strategic move will not only streamline operations but also significantly boost the NOI.
This 6-plex is more than just an acquisition; it's a carefully curated investment opportunity that promises immediate and long-term returns.
James
We acquired a four-unit building that had already been fully renovated, but we quickly identified untapped revenue opportunities. The building came with a coin-laundry facility that was not being utilized, and some tenants were on all-inclusive rent agreements. By revising the leases to transfer utility costs to the tenants and optimizing the use of the coin-laundry, we've substantially increased the asset's revenue.
This asset was acquired alongside its neighboring building, allowing us to implement a shared coin-laundry strategy. This dual-asset approach has not only increased operational efficiency but also added another layer of revenue generation.
Maclean
This 5-unit asset has received a lot of recent upgrades to optimize its operation as well as extend its economic life.
In 2023, we invested in a new roof, siding, and boiler, breathing new life into the asset and extending its economic lifespan. Inside the units, light cosmetic upgrades coupled with standard annual rent increases have contributed to a growing rent revenue stream.
The acquisition strategy for this asset was to 'make money in the buy' by achieving a purchase price far below the local comparable assets. Acquired as part of a package deal, we secured this property at an astounding 50% of the market price compared to local comparable assets.
Forbes
We acquired this 4-unit building that was ripe for transformation. With a complete overhaul of the electrical system and two units gutted for optimal use, we've set the stage for maximizing its potential. Initially, the rents were $350 below market value, and tenants had all-inclusive leases. Through natural turnover and targeted upgrades, the two revamped units are now fetching market rents, with tenants responsible for their utilities.
So far this is a 25% increase in NOI with plenty of room to grow. The remaining two units present additional value-add opportunities, promising even greater ROI in the near future.
Temperance
This 4-plex was fully occupied at acquisition but had a lot of opportunity to increase its NOI. Despite being fully leased, the rents were all-inclusive and approximately $400 below market value.
One unit has received cosmetic upgrades, while another is slated for a complete overhaul. In addition to transitioning to market-level rents and having new tenants cover their electricity costs, we're also phasing out the outdated oil heating system in favor of a more efficient electrical option.
Sydney
This was our first asset we bought together as a team and we still hold it today. We sourced this 4-plex deal through our network of investors and were able to construct a creative acquisition at a deep discount with the help of a motivated seller.
The cost per door on this deal was substantially lower than the market value which surprisingly made it difficult to secure lending on the asset. We ultimately made a cash deal to gain possession of it then began our value-add strategy. To date we have completed some full-unit renovations and have unlocked enough equity to recover the purchase price as well as have excess cash which was deployed towards acquiring larger assets later on.
Copyright 2024. All rights reserved
Copyright 2024. All rights reserved