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.
- 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.
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.