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Case Study: Newly Constructed

Newly constructed buildings can be a lucrative opportunity for real estate investors. When looking to acquire a newly constructed property, Equiton looks for buildings in areas with strong market fundamentals that offer stable cash flow and high tenant quality with longer duration tenancies.
Welcome to Emerald Hills Landing, a newly constructed building in our portfolio located near Edmonton, Alberta. The suites in this building are generously sized, averaging 902 sq. ft. and feature in-suite laundry, quartz countertops, stainless-steel appliances, and provide ample natural light. The building boasts amazing amenities including a social room, lounge area, and a fitness centre all of which contribute to higher rents.

Why Emerald Hills Landing

We purchased this property because it offered immediate positive cash flow as newer buildings are more efficient to operate and require lower expenditures for capital improvements, maintenance, and unit turnover compared to older buildings. Edmonton added a record number of new units to their rental market last year, due to strong demand as the economy recovers.

Located 20 minutes from downtown Edmonton, Emerald Hills Landing is a hub for commuters as well as those interested in a more suburban setting. This property is a mature lifestyle community drawing individuals that tend to be wealthier, reliable, and interested in living in rented homes for longer time periods. As a new apartment, it contains energy efficient building systems that reduce utility consumption and has internal social programs to increase community awareness.

Financial Benefits of the Property

This property has a higher average rent, in line with the average market rents in the surrounding area. As a newly constructed building with numerous amenities in an area with strong demand, rents are roughly ~30% higher than the average rent across our portfolio. With higher quality tenants anticipated to have longer duration tenancies, and fewer maintenance costs, Emerald Hills Landing was a great addition to our portfolio.
We purchased this property in September 2022 for $27.7M. Indicative of the strong market fundamentals, it was appraised 3 months later for $28.3M.  This newly constructed property, with its low vacancy rate and the lower expenditures is a prime example of the benefits of adding newer properties to a portfolio.

Benefits of Adding Newer Properties to a Portfolio

  • Stable cash flow
  • Better appreciation
  • Higher tenant quality and longer duration tenancies
  • Fewer maintenance costs
  • Rents closer to market value
  • Rent can increase along with the market
  • More efficient to operate and manage
  • Higher profit margin, costs = ~30% of revenue
  • Investors benefit from higher revenue and capital appreciation

    • Sable Cash Flow

    New buildings offer stable cash flows and require lower expenditures for capital improvements, maintenance, and unit turnover compared to older buildings.

    Expansion

    This is the first acquisition outside of Ontario for Equiton. This is an opportune time to invest in Alberta since the economy is starting to rebound, which will result in an influx of residents, decreasing vacancy rates, and an increase in property values. Furthermore, as the seat of Government, the Greater Edmonton area has a relatively stable economy.

    Strong Market Fundamentals

    There was a record number of new units added to Edmonton’s rental market last year, and this was met with strong demand as the economy recovers from the pandemic and years-long energy sector slump.

    Attractive to Residents

    This property will be very competitive in the market as it offers tenants new, large suites with high-end features and finishes. It’s also in a great location close to shopping centres, hospitals, and outdoor recreational activities.

    Low Vacancy

    The property is now fully leased so there will be no vacant units on closing.

    ESG Components

    The building contains energy efficient building systems to reduce utility consumption, internal social programs to increase community awareness, and an affordable housing component (21 suites).

    The property is now fully leased so there will be no vacant units on closing.

    Desirable Tenant Base

    This property is a mature lifestyle community which is ideal because individuals in this age group tend to be wealthier, reliable, and interested in living in rented homes for long time periods.

    Want to learn more about how to invest?

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    Whether you are a seasoned investor looking to diversify your portfolio or a first-time investor seeking to explore the potential of real estate, we have tailored solutions to meet your unique needs. Our investment offerings encompass a diverse range of property types, such as residential, commercial and development.
    Take the first step toward enhancing your wealth while practicing responsible investing. Seize the opportunity now to connect with our team of investment specialists by clicking the ‘Contact us’ button below and start your journey towards achieving financial prosperity.
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    Gain valuable insights and delve deeper into our investment solutions below:

    Apartment Fund:

    Our Apartment Fund specializes in acquiring underperforming and undervalued multi-residential properties and select new developments in Canada and increasing value through active management. Investors in the Fund receive the yield from rental income and participate in the growth of the underlying properties. Targeted Annual Net Return of 8%‑12%.

    Click here to learn more.

    Income and Development Fund:

    Our Income and Development Fund provides access to a diversified portfolio of institutional grade real estate assets including income-producing (commercial/industrial/lending) as well as development projects. Investors receive cash flow from rental income and interest from loans, capital appreciation from growth of value of properties and special distributions from development projects. Targeted Annual Net Return of 12%‑16% (over 10-year period).

    Our Income and Development Fund provides access to a diversified portfolio of institutional grade real estate assets including income-producing (commercial/industrial/

    lending) as well as development projects. Investors receive cash flow from rental income and interest from loans, capital appreciation from growth of value of properties and special distributions from development projects. Targeted Annual Net Return of 12%‑16% (over 10-year period).

    Click here to learn more.

    Development Offerings:

    Development projects offer the potential for higher returns. Equiton offers exclusive access to development projects with a 20% targeted average annual net return (paid upon project completion).
    The minimum investment amount is $25,000, and investors can use registered funds, making this a great opportunity for Canadian investors.
    Click here to explore further.

    Equiton Living properties:

    Are you looking to rent an apartment? At Equiton Living, we take pride in offering exceptional living spaces in sought-after communities. We understand the importance of finding a place that you can truly call home – a place where you feel comfortable, safe, and happy. That’s why we go the extra mile to provide high-quality, well-maintained apartments that exceed your expectations. Begin your journey to finding your perfect apartment today by clicking the link below. We can’t wait to welcome you home.

    Are you looking to rent an apartment? At Equiton 

    Living, we take pride in offering exceptional living spaces in sought-after communities. We understand the importance of finding a place that you can truly call home – a place where you feel comfortable, safe, and happy. That’s why we go the extra mile to provide high-quality, well-maintained apartments that exceed your expectations. Begin your journey to finding your perfect apartment today by clicking the link below. We can’t wait to welcome you home.

    Click here to explore our available suites today.