Poplar Grove Apartments
473 1st Avenue W, Unity Sask
This exceptional opportunity was located at 473 1st avenue west in Unity, Saskatchewan. Unity is located south east of Lloydminster Alberta, a town of roughly 2500 people in a strong agricuture and oil and gas sector of the province. The building was in very rough shape and had a rent roll of only $4000/month and in 3 years we substantially renovated and sold the project with a rent roll of over $7000 per month 36 months later. We spent about $125,000 in upgrades including a new pitched roof, and common area carpets and paint, and most of the suites getting complete renovations.
Sold for: $567,500 Feb 2011
Purchased Feb 2008 for $350,000
Cash invested $92,000
Value increase of 75% over 8 years
What was exceptional about this deal:
- low purchase price of $29,000/unit given good rental upside and low vacancies.
- 11 extra large 2 bedroom units, plus one bachelor suite.
- Rent control laws in Saskatchewan at the time allowed for rent increases every 3 months, allowing us to bring rents and value up very quickly.
- Everything was done locally, local bank for financing, local contractors and building materials creating a win/win scenario for all parties involved.
- Refinanced the project in 2009 with a new $404K mortgage, paying out first mortgage and the majority of the renovation costs.
- Sold the project to another investor to move on to bigger projects.
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