54-60 Shepherd Road, Oakville Loft and Townhouse Development - - PowerPoint PPT Presentation

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54-60 Shepherd Road, Oakville Loft and Townhouse Development - - PowerPoint PPT Presentation

54-60 Shepherd Road, Oakville Loft and Townhouse Development Offering Mortgage Brokerage # 10897 Mortgage Administrator # 11893 Disclaimer This Confidential Information Memorandum (the CIM) was prepared exclusively for the benefit and use


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54-60 Shepherd Road, Oakville

Loft and Townhouse Development Offering

Mortgage Brokerage # 10897 Mortgage Administrator # 11893

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Disclaimer

This Confidential Information Memorandum (the “CIM”) was prepared exclusively for the benefit and use of certain qualifying investors, and exclusively for the purposes of considering an investment in the OpArt Lofts (the “Investment”). This presentation is confidential and proprietary to its author, Neilas Inc. (“Neilas”), and may not be disclosed, reproduced, distributed or used for any other purpose by the direct recipient, or any other recipient, without the express written consent of the author. Certain statements made in this presentation may be “forward-looking statements” regarding the plans and/or objectives of Neilas for future operations and anticipated results of operations. For this purpose, any statements contained herein or incorporated herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words, “believes”, “anticipates”, “proposes”, “plans”, “targets”, “expects”, “intends”, “may” and similar expressions are intended to identify forward-looking statements. Such statements are based on current expectations that involve known and unknown risks, uncertainties and other factors, including but not limited to those described herein, that may cause actual results, performance or achievements of the Investment to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Investment’s plans and objectives are based on assumptions involving the success of the offering described in this presentation and the development of its

  • business. Although Neilas believes that its assumptions are reasonable, any of the assumptions could prove inaccurate. In light
  • f the significant uncertainties inherent in the forward-looking statements that may be made herein, the inclusion of such

information should not be regarded as a representation or warranty by Neilas, nor that the objectives and/or plans of the Investment will be achieved.

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  • Founded in 2004
  • Regulated as a Mortgage Broker and Administrator
  • Fully audited financial statements for the past 10 years with a positive report to FSCO from the

auditor every year – we just received the 2014 audit

  • Specialize in the financing of real estate properties in the GTA
  • Managing a Completed Market Value of Approximately $450 million
  • Focused on the Greater Toronto Area
  • Over 30 years combined experience in Real estate development, financing, and investing
  • Delivered returns of 9% to 16% per annum to investors since the company was founded
  • No principal losses to date, weathered the financial crisis without losing any capital

Welcome to Hi-Rise

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  • An Investment Bank is a financial institution that assists individuals, corporations, and

governments in raising capital by underwriting or acting as the client's agent in the issuance of securities and debt instruments (or both)

  • Additional services include advisory, asset management, and administration of

investment

What is Real Estate Investment Banking?

Hi-Rise is a comprehensive real estate focused investment company providing investment banking, advisory, administration and asset management services

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What We Are Not

 Hi-Rise is not a mortgage syndicator

  • Hi-Rise is a fully integrated real estate investment bank – by investing in our own

development projects investors get clarity on where funds are going

  • Hi-Rise principals invest their own money in every deal
  • Hi-Rise principals are experienced developers, not salespeople

 The Hi-Rise platform is credible

  • Hi-Rise affiliated brokers and salespeople follow a strict code of ethics
  • All Hi-Rise mortgage products are secured against the physical property, not

against equity

  • Hi-Rise raises debt financing exclusively from Schedule 1 banks
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We want you and your clients to be part of the Hi-Rise Success story

Tonight’s Presentation

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TRACK RECORD ALIGNMENT OF INTERESTS ACCOUNTABILITY & TRANSPARENCY KNOWLEDGE & EXPERTISE

SUCCESS

Our Value to You and Your Clients

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  • FSCO regulated as Broker and Administrator for 10 years
  • In full compliance with the Mortgage Brokers, Lenders and Administrators Act (see Appendix)
  • 10 Years of audited financial statements
  • Over 20 successful transactions (fully exited)
  • Over $20 million in principal returned to investors
  • No principal losses
  • No projects have ever been in foreclosure or court proceedings
  • Cube Lofts in Little Italy sold out within two hours of offering at a $200 per square foot

premium to market

  • Stage East project in Leslieville is sold out

Track Record

TRACK RECORD ALIGNMENT OF INTERESTS ACCOUNTABILITY & TRANSPARENCY KNOWLEDGE & EXPERTISE

SUCCESS

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SUCCESS

Alignment of Interests

TRACK RECORD ALIGNMENT OF INTERESTS ACCOUNTABILITY & TRANSPARENCY KNOWLEDGE & EXPERTISE

SUCCESS

Hi-Rise principals have unlimited liability – both their equity in Hi-Rise AND their personal property is on the line if projects are unsuccessful

  • Hi-Rise and related companies and their principals currently have
  • ver $10 million dollars invested in its projects
  • Hi-Rise principals have subordinated their capital to investors (i.e.

investors exit first, then we exit)

  • Hi-Rise principals personally guarantee all senior debt on the

projects financed

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 We are pleased to announce a successful audit for the tenth year in a row

  • Audit Letter
  • Audits include, where applicable, assessment of accounting principles used

and significant estimates made by management

  • FSCO Reporting Letter
  • In full compliance with the Mortgage Brokers, Lenders and Administrators

Act (see Appendix)

  • Audit Checklist

Accountability and Transparency

Your client’s investment is managed by a company that is accountable

TRACK RECORD ALIGNMENT OF INTERESTS ACCOUNTABILITY & TRANSPARENCY KNOWLEDGE & EXPERTISE

SUCCESS

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 Audit Letter  FSCO Compliance Letter

Accountability and Transparency

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 Audit Checklist

Accountability and Transparency

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 Senior Management and Directors at Hi-Rise are considered “best in class”

  • Jim Neilas, Managing Director and Broker of Record
  • John Neilas, President of SkyPoint Hi-Rise Ltd. (a related construction management

company)

  • Sherif Fadali, Vice President Investments
  • Scott Roberts, Vice President Investments
  • Peter Neilas, Chief Financial Officer
  • Noor Al Awqati, Director of Finance and Administration
  • Myles Morin, Director
  • Barry Polisuk, Director
  • Tony Greco, Construction Consultant to Neilas Inc.

TRACK RECORD ALIGNMENT OF INTERESTS ACCOUNTABILITY & TRANSPARENCY KNOWLEDGE & EXPERTISE

SUCCESS

Knowledge and Expertise

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14 Hi-Rise Partners are “Best-in-Class”

Knowledge and Expertise

TRACK RECORD ALIGNMENT OF INTERESTS ACCOUNTABILITY & TRANSPARENCY KNOWLEDGE & EXPERTISE

SUCCESS

  • We are pleased to announce the newest partner in

the Hi-Rise family – GREENWIN INC

  • In business since 1960, over 65 years
  • One of Canada’s largest privately owned

residential property management companies

  • Headquarters in Toronto with over 500 employees
  • Manages over 1,000,000 SF of commercial space

and 20,000 residential units

  • Recipients of a “Life Time Achievement Award” in

2011 from the Federation of Rental Housing Providers of Ontario

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15 Hi-Rise Partners are “Best-in-Class”

Knowledge and Expertise

TRACK RECORD ALIGNMENT OF INTERESTS ACCOUNTABILITY & TRANSPARENCY KNOWLEDGE & EXPERTISE

SUCCESS

  • PCL has an annual construction volume of more

than $6 billion, making it one of the largest contracting organizations in North America

  • In business since 1906, over 100 years
  • Over 4,400 employees across the United States,

Canada and Australia

  • Recipient in 2013 of Fortune Magazine’s 100 Best

Companies to Work For award for the eighth consecutive year

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Property Management Architects Development Legal Marketing Accountants Planning

Best-in-class development partners behind projects

Knowledge and Expertise

TRACK RECORD ALIGNMENT OF INTERESTS ACCOUNTABILITY & TRANSPARENCY KNOWLEDGE & EXPERTISE

SUCCESS

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How Can You Become Part of the Success?

TRACK RECORD ALIGNMENT OF INTERESTS ACCOUNTABILITY & TRANSPARENCY KNOWLEDGE & EXPERTISE

SUCCESS

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 Increased Costs of Home Ownership

  • Record Low interest Rates
  • Insured Mortgage Guidelines have tightened making purchase more difficult
  • The home ownership rate among Canadians aged 25 – 35 (first-time homebuyers) has fallen

5% in the last two years, from 55% to 50%

  • Tighter lending guidelines and lower allocation for high rise construction loans making it more

difficult to deliver new condominiums

  • Despite rising rents, cost of ownership still substantially exceeds the cost of renting, keeping

baby boomers and younger generations from making the move to ownership

 Tremendous Population Growth

  • Toronto is the fastest growing city in North America
  • Toronto is the fourth largest city and second largest financial centre in North America
  • Toronto population expected to increase by over two million over the next twenty years

 Political Support

  • Ontario Land Use Policy has made high rise the only viable option for growth

The Perfect Storm

The Perfect Storm has created a once in a generation opportunity for Purpose Built Rental buildings

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 Oakville is an ideal location for purpose built rental

  • Existing purpose built residential properties available in Oakville are over 40 years old
  • Oakville has one of the lowest rental unit availability per capita in the GTA (limited supply of

rental units)

  • Oakville has the highest average rents in Ontario, one of the highest median household

incomes, and low vacancies

  • Oakville’s Official Plan supports urban intensification within built up areas
  • Oakville is one of the wealthiest citites in the country
  • No more development land – High rise construction is the only option for new housing
  • Considered one of the most desirable communities to live
  • Single detached homes are considered unaffordable
  • Feasibility Study for OpArt Lofts completed by one of the top consultants in Ontario for

apartment building assets

The Perfect Storm

“Oakville has some of the most favourable demographics in Canada for high- quality rental housing, but so far no developers have stepped forward to meet this demand.” Rock Advisors New Apartment Construction Report 2013

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Big Players Push for New Purpose Built Rental in Toronto

Canary District Downtown East (Cherry St. and Mill St.) 250 units (affordable housing) Announced 2012 “Heathview” Forest Hill 30 Storeys * 2 Towers 600 units “The first new high-rise rental to be built in the community [Forest Hill] in more than 40 years.” Announced 2013 Yonge and Queen 65 storeys 580 units Announced 2013 Owns and manages a $24 billion real estate portfolio Owns and manages a $15 billion real estate portfolio Dundee Realty owns and manages a $7 billion real estate portfolio Dundee REIT owns and manages a $13 billion real estate portfolio

Evidence of Market Acceptance

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Oxford Place 600,000 sq. ft. of Residential Announced 2012 RioCan plans to build 3,000 to 4,000 residential rental units in the next five years and has three sites under consideration in Toronto Owns and manages a $22 billion real estate portfolio Owns and manages a $13 billion real estate portfolio

Evidence of Market Acceptance

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Amenities

OpArt Property Situated in Prime Real Estate

Lakeshore Rd. QEW/403 Oakville GO Station Oakville Place (shopping) Oakville Public Library OpArt Lofts Elementary School

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  • Zoning complete
  • PCL Construction Company Retained
  • Greenwin Awarded Asset Management Contract to lease up and

manage the building

  • Financial Partners currently underwriting construction loan

OpArt Lofts – Final Investment Phase

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  • Allotted

$15,000,000

  • Available

$ 6,500,000

  • Total Offering $ 21,500,000
  • Speak to your Hi-Rise investment associate about your company’s

allotment for this investment

Offering Summary

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Property Details Property Address 54 – 60 Shepherd Road Number of Storeys 10 Zoning Mixed Use Three MV3 Site Area 1.37 Acres Buildable 202,681 sq. ft. Rentable 155,454 sq. ft. Amenity (Indoor) 5,200 sq. ft. Residential Units 201 Average Unit Size 753 sq. ft. Parking 271 stalls (two levels) 1 Bedroom 99 1 Bedroom + Den 18 2 Bedroom 68 3 Bedroom 6 Elevators 4 Guest Suite 2 Lockers 201

 Modern Class “A” Apartment Rental

  • Modern amenities
  • 24hr concierge

Rents 1 Bedroom $ 1,500 /month 2 Bedroom $ 2,000 /month 3 Bedroom $ 3,000 /month Average rent $ 2.48 PSF Economics Revenue $ 4,878,000 /annum Operating Cost $ 1,372,507 /annum Operating Income $ 3,505,493 /annum Costs $68-70 MM Value $82-85 MM Profit $13-15 MM

  • Superior finishes
  • Secure living
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Thank you for attending

We look forward to Success together with you and you clients