200 Church Road, Spruce Grove, Alberta
Exceptional Real Estate investment opportunity - 20 suiterThis exceptional opportunity is located at 200 Church Road Spruce Grove, Alberta. Spruce Grove is located 11km West of Edmonton, and with a population of 34,881 it is the ninth-largest population center in Alberta. Spruce Grove has had a population growth of over 25% in the last 4 years (27,875 to 34,881). This 20 suiter is in good condition and has a premium suite mix and location. Similar performing projects are selling today in the $110,000/unit range and we are buying this asset for an amazing price of only $1,750,000 ($87,500/unit!). The price is a factor of vacancy and mismanagement, as well as some upgrades required to bring the value up sharply. We will spend about $150,000 on upgrades and perform a management overhaul for a one-year lift in value to $2,250,000 then plan to impeccably manage for four more years for maximum profit.
Sold for: Substantial - Please Contact
Purchased August 2018 $1,750,000 with a 75% loan @4.5% for 5 years
Appraised for $2,175,000, 8 months later!
Approximately $150,000 in upgrades to obtain $425,000 in Value!
Cash required $610,00
Substantial Value increase a very short time due to strong rental market and smart upgrades.What is exceptional about this deal?
- Low purchase price of $87,500 per unit given good condition, and class “B” location.
- Significant short-term upside potential - $500,000 in year one, and $300,000 + in years 2 to 5.
- Alberta economy, especially Edmonton recovering rapidly moving into 2018.
- Spruce Grove has solid population growth, and very low rental vacancy.
- Excellent suite mix with 14 large, two-bedroom units!
- New roof installed in 2008.
- Comparable ‘performing’ projects selling at $110,000 + per unit in 2018.
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