Secured Long Term Irreplaceable Asset in Midtown Toronto

29 Birch Ave is a 14,400 sq ft freestanding commercial educational building with splash pad and parking in the heart of Summerhill/Rosedale., home to the largest daycare operator in midtown Toronto. 27B Birch Ave was used as the parking facility serving the day care and zoned CR2.

The Challenge

• Existing lease had 6 yrs. remaining at below market rates and no termination clause.
• Additional leasing obligations prevented any development of 27B.
• Ownership included multiple partners with varied interests.

Actions Taken And The Results

• Step 1: Prospective in-depth discussions and commitment to work with tenant-operator to amend and extend lease agreement.
• Step 2: Invested in legals (municipal, leasing, acquisition and finance), zoning and planning consultants; architectural, general contracting and engineering; creating a custom solution to unlock the immediate value of 27B.
• Step 3: Committed to presale and build out plan for 27B.

Results:
Tenant-Operator happy with secured location and new long term lease
Presently, capital for 27B has been returned, with further equity profits paid out via tax-efficient structure, in order to deliver 6% ongoing cash on cash to investors.