Beyond Growth is more than part of our name – it’s a part of our culture here at the firm.
I love the entrepreneurial atmosphere, which pushes us to expand out of our comfort zone, with clear goals and a vibrant leadership vision.
Searlina D’Amico
Director of Marketing
261-281 9th Street East, Owen Sound, ON
| Value | |
|---|---|
|
Purchase Price |
$1,055,000 |
|
Rents upon acquisition |
$127,000 |
|
Fully rented |
$235,290 |
|
Fully rented Building Value |
$2,256,000 |
|
5-year ROI annualized |
15.99% |
The Story
261-281 9th Street East is a mixed-use (commercial/residential) building located in the heart of the downtown River District of Owen Sound. The building consists of 9 residential units (7-1 bedrooms, 1-2 bedroom & 1 studio apartment) and six commercial units. BG Wealth Properties purchased the building in March 2019 for $1,055,000 and immediately started employing its value-add model by renovating units and attracting high-quality tenants at attractive rental rates.
At the time of acquisition, one-bedroom residential units were renting anywhere from $550-$800 per month, and the two-bedroom unit was renting for $700/month. Through our value-add program, BG dramatically improved the condition of these units while successfully increasing rents on one-bedroom units to $1,300 per month, and $1,400 per month for the two-bedroom unit.
Similarly, commercial tenants were paying anywhere from $8.50-$10.00 per square foot at the time of acquisition (inclusive of taxes, maintenance, and insurance). Within the first 6 months, BG successfully started renovating commercial units and had new tenants sign long term leases at an average rate of $14.00 per square foot + $4.00/foot TMI (taxes, maintenance, and insurance) – for a total average rate of $18.00 per square foot.
Fully rented, the building carries a value of $2.2 Million based on rents we have achieved through our value-add business model.
This property still has more upside potential.
950-956 2nd Ave. Street East, Owen Sound, ON
| Value | |
|---|---|
|
Purchase Price |
$555,000 |
|
Rents upon acquisition |
$28,800 |
|
Fully rented |
$187,692 |
|
Fully rented Building Value |
$1,600,000 |
|
5-year ROI annualized |
17.38% |
The Story
950-956 2nd Avenue East is a mixed-use (commercial/residential) building located in the heart of downtown’s River District of Owen Sound. The building consists of 6 residential units (2-2 bedrooms, 3-1 bedroom & 1 studio apartment) and two commercial units. BG Wealth Properties purchased the building in March 2019 for $555,000. The five upstairs vacant residential units were gutted with no tenants, while the downstairs had a high-end spa and a furniture store as commercial tenants.
In March 2021, BG Wealth Group partnered with an institutional lender and secured funding to renovate all residential units. In addition, given the shortage of high-end vacation rentals in the City of Owen Sound, BG has converted all six units to short-term vacation rentals, which will launch at the end of 2021.
In June 2021, BGWP attracted an up-and-coming Flame ‘N Bricks pizzeria franchise located in the commercial space beside the high-end spa. The culmination of high-end vacation rentals on the upper level, a spa and a pizzeria on the lower level will make this building one of the most attractive buildings in the downtown River District.
BG received a post-renovation appraisal of $1.3 Million on the building – more than 2X the original purchase price. Fully rented, the building carries a value of $1.6 Million based on typical short-term rental rates of the area.
