Avenue Road

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Overview

For Accredited Investors Only

Urban Avenue Properties GP Inc. is pleased to present the opportunity to invest in a mixed-use re-development on Avenue Road (just north of Lawrence & south of Hwy 401), Toronto, Ontario. The property is a corner lot and has direct frontage onto Avenue Road.

As per the Avenue Road study for the area, the property is currently zoned but needs to go through committee of adjustment/minor variance along with site plan approval and building permit process - construct a five-storey mixed use building consisting of basement yoga studio, main floor restaurant and condos/apartments above. A land assembly play is also in the works where neighbouring lots will be purchased and rezoned (committee of adjustment) as a single larger lot. This lot will then be either sold or redeveloped. 

To summarize, the following are three possible scenarios relating to this Offering:

1. Like Scenario: Current Plan – Rezone and construct above-mentioned building on single lot. Budget has been received from Gillam Group based on draft drawings and plan as provided by Paradigm architects. Final valuation has been done based on $psf sellable projected at around $1,000 psf based on evidence of other similar high end projects in the broader area around Avenue Road.

2. Optimal Scenario: Land Assembly – Royal LePage through Gary Singh is currently negotiating with adjacent property owners to formalize a potential land assembly. This would be a significant value enhancement and we project better returns in this case given much higher density and floor efficiencies which we will be able to value engineer.

3. Sub Optimal Scenario: Fixer-Upper – Although highly unlikely that we will pursue this plan, but the existing building can be improved and rents increased. One or two additional apartment floors can be added (wood framing) without any major demolition to the existing structure based on preliminary discussions with the Structural Engineer.

Note: There are certain other scenarios possible as well beyond these such as an outright sale of the property.

For detailed disclosure review, please see attached Risk Disclosure Document.


The Issuer has requested that any qualified prospective investor seeking additional information about the opportunity contact them directly, rocky.kalsi@urbangp.ca, for more information

Investment Summary

ISSUER 
Urban Avenue Properties GP Inc.
ISSUE 
Limited Partnership Units (the "Units")
OFFERING SIZE 
$2,750,000
ISSUE PRICE 
$1 CAD per unit
MINIMUM INVESTMENT 
$10,000 CAD
INVESTOR ELIGIBILITY 
Accredited Investors Only
INVESTMENT TYPE 
Development LP
PREFERRED RETURN 
10% per annum (simple)
PROFIT SHARING 
60/40 residual profit split with 60% going to investors
PROJECTED RETURN 
17% per year
PROJECTED TERM 
48 months
INVESTMENT PROFILE 
Re-development
PROPERTY TYPE 
Mixed Use/Condo
REPORTING FREQUENCY 
Annual
EMD FEE STRUCTURE 
7% of raised investment amount


Financial Projections

EXIT VALUE 
$12,754,718 
LAND (INCL CLOSING COSTS)
$4,380,532 
HARD COSTS
$3,468,800 
SOFT COSTS
$1,285,818 
DEBT COSTS
$797,920 
CAPITAL COSTS
$428,355 
PROFIT 
$2,189,545


Sensitivity Analysis


Low 
Current 
High 
Sales
$10,910,353
$12,122,615
$13,334,876  
% Change
-10%
0%
+10%
Projected ROI
9.5%
17%
26.6%


Proven Experience

Urban Avenue Properties GP Inc. is a real estate development project focused on developing a boutique residential-commercial mixed-use property in the hyper urban corridor of Avenue Road in the Greater Toronto Area. The development group has years of experience and expertise in developing and upgrading institutional projects in Ontario. 

Specifically, the development group has particular competency in pre-construction planning, financial deal structuring and conservative under-writing as a means of mitigating risk and increasing certainty of outcome for its projects. 

The construction expert in Urban Avenue GP has played key roles in some of southern Ontario's most challenging projects, with project values exceeding $400 million. The finance lead in the development group has under-written commercial real estate deals aggregating over one billion dollars (CAD) over the last 16 years.

The development team has proven expertise in sourcing, planning, financing and developing complex real estate projects. The Greater Toronto Area has one of the most robust economies and population growth rates in all of North America. The City of Toronto has done multiple studies and put forward plans to improve the density, livability and vibrancy of many urban corridors and major arterial streets in the city. One of these corridors is Avenue Road. The subject site under this investment offering is a corner property situated on Avenue Road - right across the LCBO and a Loblaws grocery store. 


Example Projects

Barrie Simcoe Campus, IPD


The Bishop Strachan School Transformation Project

University Heights Office Complex, Toronto

York University Bergeron Centre, Toronto

Toronto Zoo Wildlife Health Centre


Area Comparables

As one of Toronto's up and coming redevelopment corridors, Avenue Road is experiencing increased activity in in-fill development projects between the 401 and Eglinton:

The following are some of the comparable projects in the area:

 

Stafford Boutique Condos:

Image result for stafford boutique condos

  • Avenue & Park development project is just north of Lawrence on Avenue
  • The developer is Stafford Homes'
  • The project is contributing 36 units to the upmarket stretch
  • The 7-storey project will add more modest density to a renewing stretch of Avenue Road, where a gradual influx of mid-rise projects is re-shaping the urban fabric
  • The project features luxury homes ranging in size from 1,200 square feet to over 3,000 square feet.
  • Like the 6-storey 1717 Avenue—now complete—and the under-construction Brookdale on Avenue 7-storey buildings to the north, this project offers a mid-rise scale with a retail frontage
  • Current sales prices are more than $1,000 per square foot

 

Brookdale on Avenue Condos:

Image result for brookdale on avenue condos

  • An elegant new 7-storey condominium, with 80 suites, including four refined townhomes 
  • Designed with luxury finishes and modern designs 
  • Located in this upscale yet traditional neighbourhood, suites will range from 600 to over 2,576 sq. ft, including one bedroom, one bedroom + den, two bedroom, two bedroom + den, three bedroom and city townhomes
  • 191 parking spaces within 2 below grade parking levels consisting of 108 for residential uses; 70 commercial spaces & 13 visitor spaces. 50 bicycle also provided

 

1914 Avenue Road:

Image result for 1914 avenue road

  • A new 4-storey commercial building located at the north-west corner of Avenue Road and Brooke Avenue
  • Retail at grade and office uses above

 

1560 Avenue Road:

  • Site for a new three storey mixed use building with retail at grade, office at 2nd storey, and residential on 3rd floor
  • Ground floor space is being marketed by Behar Group at $55 per square foot net. Second floor is $25 per square foot net

 

2100 Avenue Road:

  • Constructing a two storey addition atop the existing one-storey building 
  • The interior use of the building would have commercial office use on in the basement and first floor of the building with a residential dwelling unit on the second and third floor or would be a three storey wholly commercial use.
Meet the Team
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Investors
1 total, 1 anonymous
Documents
Avenue Road Subscription Agreement
Disclosure statement
General Risks
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Terms

Disclosure: R2 is a related company to Urban Avenue LP.

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