Kingston term sheet

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  • McMurray Street CondosMaisonette - Third Floor Plan

    Scale 1:1009 April 2012

    FIRST MORTGAGE FINANCINGUP TO $8.0 MILLION

    555 PRINCESS ST.

    8% annual fixed rate of interest

    Interest paid quarterly

    4% per annum end-of-term investor bonus paid from distributable cash proceeds

    36-month term

    Cash, RRSP, RESP, TFSA and LIRA eligible

    $25,000 minimum

    KINGSTON

    BY TEXTBOOK (555 PRINCESS STREET) INC.

  • Its time to rewrite the book on student housing in Canada.

    For decades, moving off-campus often meant living in run-down, sometimes exorbitantly priced apartments or houses. Students settled for poor housing conditions at high prices because it was seen as a virtual post-secondary rite of passage. Going to college or university meant paying a fortune to live in a dumpsimple as that.

    We figured it was time for a change, but couldnt find a better option. Thats when we decided to build one ourselves.

    Enter , a new concept in high-quality, affordable, off-campus student living that delivers a great lifestyle experience for students while offering peace of mind to parents and a lucrative return on investment for buyers.

    Why now? Simply put, demand for purpose-built student housing is growing at a fast pace and shows no sign of easing.

    Thats because Canada is in the throes of a student housing crisis thanks to factors such as population growth, a difficult job market thats prompting many graduates to pursue second degrees, and a sharp increase in the number of international students. According to analyst estimates, the countrys post- secondary institutions host more than 1 million students, but will soon fall 425,000 beds short. Worse, only 25,000 university beds have been added across the country over the past five years, with 15,000 of them located in Waterloo, Ont. This lack of investment has resulted in huge supply shortages across some of Canadas fastest-growing campuses.

    Were filling the gap by leveraging the experience and expertise of our dedicated team of real estate professionals and property managers to construct purpose-built student housing so governments and universities dont have to. Lets just say this isnt your typical rental-income opportunity. Textbooks professionally managed units and one- to three-year rental guarantees ensure immediate and secure cash flow for investors that, at todays interest rates, offers a projected annual return on investment of 4060%. Best of all, parents serve as our primary leaseholders to help mitigate risk and boost tenant accountability. With prime locations close to campus, transit and other amenities, Textbook (555 Princess Street) Inc. (Textbook) presents an investment opportunity that any business professor would love.

    And this is just the beginning. Our team plans to develop residences at colleges and universities across the country, providing students with a better standard of living and investors with profitable rental-income prospects along the way.

    Call it a approach to solving Canadas student housing challenges.

    Only 25,000

    university beds have

    been added over the

    past five years.

    There are more

    than 1 million post-

    secondary students

    across Canada.

    If no new residences

    are built, there will

    be a shortage of

    425,000 beds.

    A UNIQUE OPPORTUNITY FOR INVESTORS. A BETTER LIFE FOR STUDENTS.

  • MARCH/APRIL 2015 canadianrealestatemagazine.ca 37

    strategy

    The time is right to invest in student condos

    HOT SCHOOL ALERT: WESTERN UNIVERSITY Western University, in London, Ont., is still a growing post-secondary institution with a less-developed student housing market and a strong demand for higher-end options such as condos. 37,488 full-time post-secondary

    students, plus another 5,000 at affiliate colleges (as of June 2014)

    93% first-year retention 94% graduate retention 11.6% Increase in accepted offers in

    June 2014, according to the Ontario Universities Application Centre. Enrolment confirmations at other Ontario universities were actually down an average of 3%

    $240 million in annual research #1 placement of the Ivey Business

    School in Businessweeks most recent MBA rankings

    With the number of enrolled students across Canada on the rise, and the cost of an education reaching new heights, Matt Elkind of The Condo Store explains why investors in student rental properties should focus on the high end of the market

    keg party hangover. But you can eliminate this burden by having a professional property management firm handle your rental property on your behalf.

    3Maintenance. All the maintenance is handled by the condo, including snow removal, gardening and cleaning of the common area.

    MATT ELKIND is a Toronto-based Realtor and real estate investor who specializes in the pre-construction condominium market. He is a co-founder of Connect Asset Management, as well as the Insider Condo Club, which has become the largest condo-buying syndicate in North America. Contact him at 416-533-5888 or matt@mattelkind.com.

    For years, investors have identified the student market as a lucrative opportunity. Since 2000, the number of enrolled students across Canada has grown by 44%, reaching more than a million, according to the Association of Universities and Colleges of Canada.

    The cost of an education in Canada is also on the rise, and successful investors are aware that they are increasingly renting not to the poor student, but effectively to their wealthy parents, who are more and more prepared to pay a premium to ensure that nothing gets in the way of their childrens education.

    In fact, the key to building a profitable and manageable student-housing portfolio lies at the high end of the student condo market. Why are these property types such a great option for students and their wealthy parents?

    1Security. The word is music to parents ears. Student condos and purpose-built apartment buildings have cameras in all common areas, as well as onsite staff, which give parents piece of mind. They also have security systems to control entry, as well as 24/7 video monitoring that protects the premises.

    2Professional property management. Managing 18- and 19-year-olds who are enjoying their first taste of freedom can give landlords a headache worse than a

    4No rent control. There are no rent control provisions on new condo developments.5Preferred by the city. Condos are a preferred structure for municipalities. Compared to illegal rooming, this structure ensures the building isnt at risk of being shut down.

    6No unexpected repair costs. A new condo building is covered by Tarion warranty. Long-term repairs, such as new roofs, are covered in maintenance fees.

    7Fewer rooms. Condos typically have fewer rooms than student houses. Fewer rooms mean fewer students per unit, and a lower chance that damage and tenant issues will arise. Fewer roommates are also likely to equal better grades; condos are more desirable than larger houses with more distractions.

    8Furnished is better. Consider furnishing the condo unit. Who really wants to show up for the first day of school with a U-Haul if they dont have to? Also, furniture prevents damage to the unit because most damage occurs during the move.

    Pre-construction condos are one of the best ways to invest in student housing. Purchased several years before students apply to schools, investors arent competing with parents on resale properties. They often come with full rental guarantees and free or low-cost property management, making them a hands-off investment option.

    peace

  • PROJECT DESCRIPTIONFounded in 1841, Queens University remains one of Canadas top post-secondary institutions. Nestled along Lake Ontario in the beautiful city of Kingston, Ontario, consistently ranked as one of the best places to live in Canada, it is no wonder Queens continues to be a top choice for students around the world. Queens is currently home to over 24,000 students from more than 120 countries. The university is a top academic institution, with the average grade of students entering first year being 88.9%.

    (555 Princess Street) Inc. (Textbook), a subsidiary corporation of Textbook Student Suites Inc., proposes to construct a new student residence condominium at 555 Princess St. in the heart of downtown Kingston, a short 10-minute walk to the Queens campus, with public transit available at the doorstep. Textbook is proposing the construction of an 11-storey tower, containing 194 units that will accommodate up to 358 students. This student residence will be complete with many student amenities such as a gym, study rooms, movie room, rec room, rooftop patio, student lounges, etc. throughout the building. With the inclusion of these amenities, Textbook is ensuring that each student has the proper tools to succeed while attending university and to live in a beautiful home while doing so.

    555 Princess St. is located on the northwest corner of Princess St. & Alfred St. Princess St., is the main retail street of downtown Kingston and a very popular spot with students because of its shopping and night life.

    The site lies within the boundaries of the Williamsville Main St. Study Area, which was approved by the City of Kingston in February 2012. The study area refers to a 12-block section of Princess St. between Division St. & Bath Rd./Concession St. This neighbourhood consists mainly of used-car dealerships, car rental companies, gas stations and vacant lots. These, along with abandoned buildings, have been the subject of numerous transportation and parking upgrades, which were recently approved by city council. Princess St. is a vibrant street and with