Embrun Project

Land > 12-Plex

Buy.

OREG purchased this property June 18th, 2020. It is located in Embrun in an already developed sub-division. Embrun is a booming suburb only 20-minute drive from dowtown Ottawa. The vacancy rate is less then 1%.

BUILD.

Planning and construction will begin August 1st, 2020. The property will comprise of four stacked dwelling units with 12 two-bedroom apartments and 16 parking spots.

RENT.

This property in being rented under OREG’s Management.

Modern kitchen with white cabinets, stainless steel appliances including a refrigerator, oven, microwave, and a toaster, white subway tile backsplash, and a white countertop with a double sink.

Modern living room with blue sofa, yellow chairs, a large flat-screen TV, and decorative plants.

Modern kitchen with white cabinets, stainless steel refrigerator, and a kitchen island with two black barstools; open dining area with sliding glass doors, sheer curtains, and wooden flooring.

A bedroom with a bed covered in white sheets, a yellow blanket, and red and brown pillows. There are framed pictures of autumn scenes on the wall above the bed. A window with dark blue curtains is on the left, and a white nightstand with a small blac

Living room with a blue sofa with yellow and red pillows, a yellow armchair, a black coffee table with a plant and remote, patterned rug, and open kitchen in background.

Bedroom with white walls, a bed with blue pillows, a white bedspread, a gray blanket, and towel swans on top. A window with blue curtains, a mirror leaning against the wall, and a patterned rug on wood flooring.

A neatly made bedroom with a bed, yellow blanket, red and beige pillows, and rolled towels. There is a white nightstand with a black lamp, a window with blue curtains, a patterned rug, and artwork on the wall.

Modern kitchen with white cabinets and a large window overlooking a green field, featuring a countertop with a sink and a sliding glass door leading outside.

Bathroom with a vanity, sink, mirror, toilet, and a tiled walk-in shower with a shower curtain.

Bedroom with a neatly made bed with blue pillows and a gray throw blanket, two open closet doors, and a bathroom with a shower visible through one door, minimal decor with small potted plants on wall shelves.

Modern kitchen with white cabinets, stainless steel appliances, a kitchen island with a sink, and large windows letting in natural light.

Empty closet with white sliding doors and empty interior, next to an open door leading to a hallway with gray-ish wooden flooring.

Bathroom with a toilet next to a bathtub and a shower area with marble tiles on the wall.

Empty room with light-colored walls, a window, wooden floor, and ceiling light fixture.

Empty room with white walls, a closet with open sliding doors, and a partially open door leading to another room, featuring wood flooring.

Empty modern kitchen with white cabinets, stainless steel appliances, and a kitchen island, illuminated by ceiling lights and natural light from a window.

Empty kitchen and dining area with white cabinets, island, and hardwood floors illuminated by sunlight.

Modern kitchen with white cabinets, a black refrigerator, a stainless steel stove, tiled backsplash, and a speckled countertop with an undermount double sink and a black faucet. There are large windows and a hanging light fixture in the dining area.

Laundry room with a white washing machine and dryer next to an open door, with a bathroom mirror and vanity visible in the background.

Empty modern kitchen and dining area with white walls, three windows, a stainless steel refrigerator, oven, and island with sink, hardwood floors, and natural light from the windows.

Empty modern kitchen and living area with wood flooring, white cabinets, and large windows in a bright, open-concept space.

Empty room with wooden flooring, two open closet doors, and an open door leading to a bathroom with a toilet and a partially visible kitchen in the background.

Empty white pantry with sliding door, open shelves, in a modern kitchen with white walls and dark hardwood floors.

Empty walk-in closet with white walls, a metal hanging rod, and a wooden floor.

A modern three-story apartment building with multiple units, balconies, and stairs, located on Provence Avenue, with a well-maintained lawn, street signs, and utility boxes in the foreground.

why Ottawa?

Economic Growth.

The city’s economy has grown by an average of 2.7% annually over the last five years. While COVID-19 shrank the GDP in 2020, experts forecast that Canada’s economy will resume growing by 5.3% in 2021 and 3.5% in 2022.

Home Values.

According to the Ottawa Real Estate Board (OREB), the average price of a residential-class property in Ottawa was $582,267 at the end of December, a 20 per cent jump from 2019. Meanwhile, the average condo sold for $361,337, up 19 per cent over a year earlier.

Last month, Royal LePage said it’s forecasting the aggregate price of a home in the capital region to rise 11.5 per cent in 2021, well ahead of the overall average increase of 5.5% across all major Canadian markets. The brokerage said the spike is being fueled by the region’s stable government- and tech-driven economy, an influx of buyers from the Toronto area looking for better value and surging demand for roomier properties in the COVID-19 era.

Vacancy Rates.

With demand dampened by the COVID-19 pandemic and a growth in supply, Ottawa’s rental apartment vacancy rate rose to 3.9 per cent in October 2020. Vacancy rates went up in most of Canada’s major cities due to COVID-19.

DEAL STRUCTURE

CAPITAL LENDING

The Project.

Project: 12-unit Multifamily
Project Cost: $3,350,000
Appraised Market Value: $5,205,000
Gross Yearly Rents: $288,000
Net Operating Income: $234,200
Cap Rate: 4.5%

The Opportunity.

Lending Rate: 6.0%
Minimum Capital: $100,000
Terms: 24 months, renewable
Interest Paid End of Contract Term