Oakmount - Toronto, Ontario
An exciting & unique opportunity to invest in an 9-unit rental.
The Opportunity
A rare opportunity to add a brand new, 8 unit apartment building to your portfolio in the city of Toronto. The property was recently completed and is fully occupied and cash flowing.
These "missing middle" developments are highly sought after due to the rental shortages that have been plaguing the city for years.
The Location
This property is located just North of Bloor and West of Keele. Access to one of the most desirable parks in all of Toronto (High Park) is at the end of Oakmount. Keele and High Park Subway stations are within 500 meters of the property.
This site is has great walkability with access to restaurants, bars, cafes, banks and grocery stores.
The asset
8 Unit
Purpose Built Rental
Unit Mix
6 x 2 Bed, 2 Bath Units
2 x 2 Bed, 1 Bath Units
7 Car Parking
No Rent Control
Built after 2018
Additional Units
1,000 sq ft - 2 Storey Garden Suite
Valuation
$6,200,000 - As Is
$7,700,000 - As Complete with Garden Suite
CMHC MLI Standard
$3,595,387 - Loan Value
3.93 % Interest
10 Year Term
40 Year Amortization
63% Loan to Value
Exit Options
Sell and Exit
Sell Individual LP Units
Refinance
The investment
Capital Raise
$ 1,600,000
Minimum Investment
$ 30,000 (Registered Fund Eligible)
Projected Return
15 % Annually
Investment Type
Equity Partnership
Length of Investment
3.5 Years
Deal Structure
GP/LP
Β
Project Costs / Loans & Equity
Purchase Price |
$2,750,000 |
Closing Costs |
$250,000 |
Construction Hard Costs |
$1,800,000 |
Construction Soft Costs |
$550,000 |
Carrying Costs |
$650,000 |
Additional Financing Fees |
$200,000 |
Total Project Cost |
$6,200,000 |
CMHC MLI Standard Loan |
$3,600,000 |
Original Investor Capital |
$1,000,000 |
Additional Investor Capital |
$1,600,000 |
Total Loans & Investor Capital |
$6,200,000 |
Operating Revenue / Expenses
8 Units
Gross Yearly Income (minus vacancy)2 Beds (Bsmt) @ $1870, 2 Beds @ $3255 |
$275,051 |
Operating Expenses |
$60,872 |
Net Operating Income |
$214,179 |
Current Valuation (3.5% Cap Rate) |
$6,200,000 |
Net Operating Income |
$214,179 |
Debt Service @ 3.93% Interest |
$179,012 |
Cash Flow |
$35,167 |
Gross Yearly Income (minus vacancy)2 Beds @ $1870, 2 Beds @ $3255, GS @ $3800 |
$325,851 |
Operating Expenses |
$68,682 |
Net Operating Income |
$257,169 |
Projected Valuation (3.5% Cap Rate) |
$7,347,692 |
Net Operating Income |
$257,169 |
Debt Service @ 3.93% Interest + GS Loan |
$194,013 |
Projected Cash Flow |
$63,157 |
Capital Raise
$1,600,000
Ownership Share - 55.8%
Cash Flow Share - 61.9%
Total Cummulative Cash Flow AT YEAR 3.5 $8,758
Cash flow Timeline
Per $100,000 Investment
Financial Projections
3.5 Year Projections
Value @ Year 5 |
$8,026,194 |
Mortgage @ Year 5 |
-$3,412,272 |
Selling Costs (5%) |
-$401,310 |
Gross Profit |
$4,212,612 |
Garden Suite Loan |
-$300,000 |
Original Class B Investors |
-$914,167 |
New Class B Investors |
-$1,488,101 |
Net Profit |
$1,510,343 |
New Class B Profit (55.8%) |
$842,696 |
New Class B Investment |
$1,600,000 |
New Class B Profit % |
52.7% |
New Class B % Ann. (3.5yr) |
15% |
Income Growth Rate |
3.5% |
Expense Growth Rate |
1.5% |
Vacancy Rate |
1.5% |
Current Debt Coverage |
1.2 |
Debt Coverage @ Year 5 |
1.57 |
Current Cap Rate |
3.5% |
Future Cap Rate |
3.5% |
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