This particular site was a stellar example of what potentials a strategic plan can provide the client.
Service engagement required: Full buyers advisory, Landlord property turnaround strategy, operational optimization, seller positioning for disposition.
The goal/objective: To secure an investment/cash flow property in a medium to high demand area, well positioned into path of progress and density, undervalued, with minimal down required, enabling options and freedom to either hold for cash flow generation or sale, with optimal equity creation within a one year timeframe.
This Burnaby legal duplex with 14 bedrooms and 6 baths, over 3 floors, with current usage as a homestay for international students on a per room basis, was actually a structural 4 plex with two 3 bedrooms on the top floor, and two 5 bedroom townhouses (main/lower) on either side, which also had the flexibility to be operating as best use as a functional 6 plex with four 3 bedrooms, and two 2 bedrooms on the lower. We saw the potentials of what the underlying optimal suite composition existing here could bring. All with separate entrances, hydro and all other utilities paid by tenancy.
The site was negotiated and secured for $638K. Budgeted renovation lasting one month of only floors, paint, ceiling spraytex, landscaping, and doors came to under $40K. The property was secured with less than 10K down, re-tenanted on a conventional suite by suite basis creating $1500/3 bdrm, and $1000/2 bdrm which totalled $8000/month in gross revenue. There were no owner costs except for property taxes and insurance.
Justified value created on this property supported a sale value of $1.4 Million based upon a generous 6% cap rate.
The property sold within a total one year timeframe for $1.4 Million.
The owner could have kept the property with near $8000 gross cash flow/month, with achieved 'built in' equity position of over $750K in one year, enhancing both cash flow and equity over time, or keep to the original plan of sale within 1 years time. The property was strategically bought, provided cash flow to ownership from day one, paid for its own enhancement, and created unheard of equity for the owners in such a short time frame based upon its deal size.
What % ROI does this represent on monies vested ? Practically incalculabe
1912 Arts & Crafts era Heritage conversion niche product. 11 suites comprising 10,000 sq. ft of ultimate character and vintage appointments with separate 5 car bay garage facility on 1/2 acre in prime Queens Park, in dynamic New Westminster. Sits on 3 lots with large future upside. It is a very rare best if use property again representing optimal cash flow margin and short/med/long term appreciation with holding revenue.
Service engagement required to date: Full buyers advisory, ongoing landlord advisory, operational advisory. To locate and structure a revenue/holding property within the heritage niche, under valued, under tenanted, optimal margin and cap rate target with high value escalation in high demand area.
Goals/Objective: To provide long term escalating cash flow margin, unique niche market product that provides options during the course of ownership.
This asset class is very strong and often secures higher value residency given its niche and quality character offering to many who prefer such in their residence.
This property was well leveraged, well bought, and well structured towards being a long term hold with many options along the way. This site is all upside.
42 suite Multifamily
This is a prime example of a larger scale apartment multifamily property secured in a principled strategic manner to the benefit of ownership:
Service engagement required to date: Full buyers advisory, Landlord ongoing advisory
The goal/objective: To secure a well bought large scale multifamily property with large land holding footprint for good rezoning potential into the future, maintaining holding revenue, providing options and freedom into the future. Current long term hold status.
This 42 suite mutlifamily building sits on a prominent corner site of approximately 1 acre in a rapidly developing corridor of a major growing Okanagan center - Kamloops - well positioned in the path of progress, with very capable on site management and is a hands off asset to its ownership.
This site was secured with less that 10% down required at closing, included creative deal structure, at est $30K/door less than 5 yrs ago. It was well bought, not just on price or leverage alone, but with well structured terms and a strategic plan to continue optimal operational capacity providing maximal NOI and highest justified value on an ongoing basis. It is well positioned for disposition at any time the owner wishes to sell. It is now valued at above $100K/door as is, while the underlying land value continues to benefit amidst much neighboring commercial office development and seniors housing activity.
It represents exceptional leverage, instant equity realization, cash flow creation and growth, and large equity position within a short timeframe.
1st Shaughnessy holding/revenue
This property represents a very strategic buy/hold with specific parameters.
Service engagement required to date: Full buyers advisory, Landlord operations advisory ongoing
The goal/objective: To secure a rare holding property in one of the most preferred prestigious areas of Vancouver, rare in its offering as a large estate sized property with potential holding revenue to offset carrying costs pursuant to new residence building construction to realize very large equity position in eventual principal residence.
This 100 X 200 ft. estate sized property in 1st Shaughnessy Vancouver represents a 5 bedroom main house with a 2 bedroom self contained suite attached for optimal holding revenue. In an area where one cannot purchase land alone of this nature for less than $3 Million. Well bought, well structured, and provides holding revenue to enable cash flow beyond carrying costs. This is typically unheard of in the most established and preferred areas of Vancouver due to the acquisition costs vs revenue required to cover, even with large down required.
This site represents huge equity gains 'as is', cash flow in its current unimproved state, and shall deliver massive gains when a new principal residence is built upon it. Ownership is extremely well positioned to say the least.