Year In Review

Press Releases / May 16, 2022

While the uncertainty of the pandemic continued for another year, BG Wealth Properties continued to build on the momentum and growth achieved in 2020. Here are some of our highlights from this year, as well as a look at what’s planned for 2022.

- Year over year growth: After a 2020 year that showed 2x growth, we are excited to report an amazing increase of 3X year over year in total growth and Assets Under Management (AUM)in 2021, which included the acquisition of eight (8) new pieces of real estate. What a year!
- Short Term Rental Market Remains Strong: The longevity of the pandemic has brought upon a desire to travel for many individuals. The demand for short term rentals continues to increase and BGWP is excited to be entering 2022 with a total of three (3) short term rental properties By the end of Q1 2022 we will have acquired an additional 12 units which will be converted into short term rentals!
- Owen Sound Riverfront Development: Progress will continue into this year as the council is shifting its focus to Phase 2 of the project.
- Phase 2 Set to Begin Summer 2022: Council confirmed the plan to begin phase 2 of the downtown revitalization initiative in Summer 2022, which is a pedestrian-focused effort to make the area more accessible. BG owns three (3) buildings which back onto the river, and the progress made by the city of Owen Sound continues to improve the experience for our renters and footprint within the region.

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Owen Sound

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.

Owen Sound

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.