16-UNIT APARTMENT INVESTMENT OPPORTUNITY - LoopNet
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237 LORETTA AVE S, OTTAWA
16-UNIT APARTMENT
INVESTMENT OPPORTUNITY
INFORMATION MEMORANDUM
FLORIAN NAGELSCHMITZ, BROKER
FLORIAN@CAPITALCOMMERCIAL.CA
O: 613-518-2006 EXT. 5
C: 613-818-8667
1505 Carling Ave, 2nd Floor, Ottawa
www.capitalcommercial.ca
info@capitalcommercial.ca
TABLE OF CONTENTS
Notice to Reader 1
Property Details 2
Location 3
Future Civic Hospital Campus 4
New LRT System 5
Economic & Demographic Data 6
Cash Flow Analysis 8
Capital Improvements 11
Property Photos 12
Offering Procedures & Contact 16
2 3 7 L O R E T TA AV E S
NOTICE TO READER
Capital Commercial Investment Corporation, Brokerage, (the “Advisor” or “CCIC” or “Brokerage”), as advisor
to 2399627 Ontario Inc. (the “Seller”), has been engaged to manage the offering of 237 Loretta Ave S, Ottawa,
Ontario (the “Property”).
This Information Memorandum (“IM”) has been prepared by the Advisor with the assistance of the Seller, and is being
made available to those persons who have expressed interest in acquiring the Property.
The Seller and/or Advisor shall not have any liability for any representations (express or implied) contained in the IM,
or for any omissions from the IM, or for any other written or oral communications transmitted to prospective
buyers in the course of its evaluation, investigation and due diligence in respect of the Property. The Seller and
Advisor expressly advise, and in submitting an Offer, a prospective buyer acknowledges that it is not relying on,
and could not reasonably rely on the Information in arriving at any decisions in connection with the Property. Each
prospective buyer must rely upon its own inspections, investigations and due diligence in order to satisfy itself as
to the title, liens, encumbrances, description, fitness for the purpose, quantity, condition, quality, value or any other
matter or thing whatsoever relating to or in connection with the Property.
The Seller reserves the right to not accept any or all of the proposals, including without limitation the highest
proposal, and to enter into an agreement of purchase and sale with whomever the Seller in its sole and absolute
discretion deems appropriate. No Proponent shall have any claim for compensation of any kind whatsoever, as
a result of participating in this Offering and, by submitting a Proposal, each Proponent shall be deemed to have
agreed that it has no claim.
The criteria which the Seller will use for evaluating the proposals and entering into an agreement of purchase and
sale are in the Seller’s absolute discretion, and without limiting the generality of the foregoing, may include one or
more of: price, reputation of the proponent, qualifications and experience of the proponent and its employees and
the financial strength of the proponent.
Should the Seller not receive any proposal satisfactory to the Seller, in its sole and absolute discretion, the Seller
reserves the right to re-advertise to seek new proposals or negotiate an agreement or agreements for the whole or
any part of the Seller’s lands with any one or more persons whatsoever, including one or more of the proponents.
By responding to this Offering the proponent agrees that no legal relationship is created between the Seller and
the proponent.
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 1
PROPERTY DETAILS
LEGAL DESCRIPTION: Lot 19, Block E, Plan 146 and Part of Lot 18, Block E, Plan 146, being Part 1 on
Plan 5R-8402, E/S Loretta Avenue, W/S Champagne Avenue, S/T N533635, in the City of Ottawa. It is
identified as PIN 04106-0205 in the Ottawa Registry Office.
ADDRESS: 237 Loretta Ave S, Ottawa EXTERIOR CLADDING: Vinyl siding and ribbed face
PIN: 04106-0205 concrete block on the side
elevations
MUNICIPALITY: City of Ottawa
VERTICAL ACCESS: Two stairwells
NEIGHBOURHOOD: Hintonburg/Preston
HVAC: •Majority of units use a
ZONING: R4S combined system of PTAC
•Residential 4th Density Zone units with supplemental
•Subzone S baseboard heating
LAND SIZE: 10,613.21 sq. ft. •Both 1 BDRM suites are
YEAR BUILT: Late 1980’s heating by gas fired combined
heating/cooling units
SUITE MIX: 16 suites total:
(installed in 2014)
•1 BDRM (x4)
•2 BDRM (x11) •Underslab of main floor which
•2 BDRM+LOFT Townhome (x1) is exposed to the unenclosed
garage is also gas heated
PARKING: 15 spaces total:
•8 Spaces (outdoor, uncovered) LAUNDRY: A common laundry room is situated
•7 Spaces (outdoor, covered) on the main level and houses two
washers and two dryers. The laundry
FOUNDATION: Poured concrete
is equipment owned. The cost to
FRAME: Wood frame construction wash and dry is $2.00 each
ROOF: Combination of asphalt shingle STORAGE LOCKERS: Twelve storage lockers are
and flat roofing provided in the basement
237 LORETTA ST. S
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 2
LOCATION
78 64
VERY WALKABLE GOOD TRANSIT BIKER’S PARADISE
Most errands can be Many nearby Daily errands can be
accomplished on foot. transportation options.* accomplished by bike
*
Please note that Transit Score is currently misrepresented due the construction of the Trillium Light Rail Transit (LRT) Line.
Upon estimated Trillium Line completion in 2022, 237 Loretta will be in short walking distance to both Gladstone (6 minutes
walk) and Carling (8 minutes walk) LRT Stations which will provide tenants with rapid transit connectivity to the downtown
core, Macdonald-Cartier International Airport and both Carleton University and Ottawa University. In addition, the property
is situated 200-metres from Highway 417 between the Parkdale Ave and Booth St exits.
7
1
LANDMARKS
2
8
1. Hintonburg (Shopping & Dining)
2. Future Gladstone LRT Station (6 min walk)
3. Highway 417 9 18
4. Carling O-Train Station (8 min walk) 10
11
5. Dow’s Lake Pavillion/Rideau Canal Skateway
6. Experimental Farm (Green Space, Bicycle/ 3 12
Walking paths
13
AMENITIES 14 19
7. Appletree Medical Centre 15 16
8. Yogatown
9. Starbucks
10. Le Suq Grocery and Cafe
11. Heart and Crown Pub
12. Giovanni’s Restaurant 17
13. Absolute Comedy Ottawa 4
14. Di Rienzo’s Grocery
15. Pub Italia
16. Atelier Fine Dining 5
17. CIBC Bank
EMPLOYERS
18. Preston Square Business Park:
• Adobe 21
• RBC Dominion Securities
• Sunlife Financial
19. National Resources Canada 20
20. Future Civic Hospital
(Targeted completion: 2027) 6 6
21. Civic Hospital
Future LRT Transit Line (Under construction.
Targeted completion: 2022)
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 3
FUTURE CIVIC HOSPITAL CAMPUS
Currently in the planning stages with a targeted opening date of
2026 or 2027, this $2 billion, 3.5 million sq. ft. infrastructure
project will be located 650 metres, and 8 minutes walk from the
subject property. The hospital is the only hospital in the Champlain
region which provides complex, specialized services including neuro
and vascular surgery which will require a highly skilled, and educated
work force. The subject property will be in an exceptional position
to house these professionals.
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 4
NEW LRT SYSTEM
Ottawa is currently building phase 2 of it’s light rail transit
(LRT) system. The LRT system is a state-of-the-art system
and Ottawa’s largest transportation infrastructure project
since the building of the Rideau Canal.
237 Loretta Ave S is located within close walking distance
to both the Gladstone (6-minute walk) and Carling (8-minute
walk) LRT stations which are both currently under construction
with an anticipated opening in 2022. They are located 4 and
5 LRT stops from the Parliament station respectively. These
two LRT stations will provide the tenants of the building rapid
access to the downtown core, Ottawa universities, and the
Macdonald-Cartier International Airport.
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 5
ECONOMIC & DEMOGRAPHIC DATA
POPULATION
TOTAL POPULATION 435 31,189 1,019,693
Neighbourhood (NBH) Community (COM) City (CITY)
GENDER FAMILY STATUS
>15 MARRIED >15 SINGLE
FEMALE MALE W/ CHILDREN W/ CHILDREN
NBH 51% 49% NBH 14% 10%
COM 51% 49% COM 22% 7%
CITY 51% 49% CITY 27% 11%
MARITAL STATUS AGE DISRIBUTION
NBH NBH 40%
SINGLE 39%
MARRIED 50% 21%
SEPARATED/DIVORCED 9% 9% 11%
6% 3% 6% 3%
2%
OTHER 2%
0-9 10-14 15-19 20-29 30-44 45-54 55-64 65-74 75+
COM SINGLE 36%
COM
20% 21%
MARRIED 53%
12% 12%
10%
SEPARATED/DIVORCED 8% 8%
5% 5% 6%
OTHER 3%
0-9 10-14 15-19 20-29 30-44 45-54 55-64 65-74 75+
CITY CITY
SINGLE 30%
21%
MARRIED 56% 15% 13% 13%
11%
SEPARATED/DIVORCED 9% 9% 7%
5% 5%
OTHER 5%
0-9 10-14 15-19 20-29 30-44 45-54 55-64 65-74 75+
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 6
SOCIO-ECONOMIC
AVG HOUSEHOLD INCOME
$
103,226 $
141,797 $
118,821
Neighbourhood (NBH) Community (COM) City (CITY)
EMPLOYMENT HIGHEST LEVEL OF EDUCATION
NBH NBH
DOMINANT PROFESSION #1 UNIVERSITY 72%
Natural and applied sciences
and related occupations COLLEGE 13%
85% DOMINANT PROFESSION #2
Employed Occupation in education, law HIGH SCHOOL 8%
and social, community and
government services
OTHER 7%
COM COM
UNIVERSITY 65%
DOMINANT PROFESSION #1
Occupation in education, law
and social, community and COLLEGE 10%
72% government services
Employed DOMINANT PROFESSION #2 HIGH SCHOOL 18%
Sales and service occupations
OTHER 7%
CITY CITY
DOMINANT PROFESSION #1
UNIVERSITY 41%
Sales and service occupations
COLLEGE 20%
68% DOMINANT PROFESSION #2
Occupation in education, law
Employed and social, community and HIGH SCHOOL 24%
government services
OTHER 15%
HOUSEHOLDS
NBH NBH
OWNERSHIP OWNED
COM COM
RENTED
CITY CITY
STRUCTURAL TYPE
NBH COM CITY
APARTMENT 41% APARTMENT 50% APARTMENT 31%
SINGLE DETACHED 34% SINGLE DETACHED 33% SINGLE DETACHED 42%
SEMI-DETACHED 11% SEMI-DETACHED 9% SEMI-DETACHED 5%
MOVABLE 0% MOVABLE 0% MOVABLE 0%
ROW HOUSE 13% ROW HOUSE 8% ROW HOUSE 21%
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 7
CASH FLOW ANALYSIS
RENT ROLL
PRIVATE
SUITE # # of BDRM BALCONY LOFT FURNISHED SQ.FT
ENTRANCE
2 2 + loft 1500 (approx)
3 1 600 (approx)
4 2 720
5 1 590
6 2 720
7 2 700
8 2 720
9 1 590
10 1 590
11 2 720
12 2 760
13 2 720
14 2 720
15 2 720
16 2 760
17 2 720
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 8CASH FLOW ANALYSIS
OPERATING INCOME
Note: Building is currently fully rented with the exception of unit 5 which will be kept vacant for showings from
December 1st onwards.
IN PLACE MARKET
SQ.
SOURCE PER PER
FT. MONTHLY ANNUALLY MONTHLY ANNUALLY
SQ. FT. SQ. FT.
Suite 2 - 2 Bdrm + Loft (Townhome) 1500 1,871 1.25 22,452 2,100 1.40 25,200
Suite 3 - 1 Bdrm (Basement) 600 900 1.50 10,800 1,400 2.33 16,800
Suite 4 - 2 Bdrm 720 1,450 2.01 17,400 1,700 2.36 20,400
Suite 5 - 1 Bdrm (Furnished) 590 1,650 2.80 19,800 1,700 2.88 20,400
Suite 6 - 2 Bdrm 720 1,500 2.08 18,000 1,700 2.36 20,400
Suite 7 - 2 Bdrm 700 1,430 2.04 17,160 1,700 2.43 20,400
Suite 8 - 1 Bdrm 720 1,350 1.88 16,200 1,400 1.94 16,800
Suite 9 - 1 Bdrm (Loft) 590 1,600 2.71 19,200 1,600 2.71 19,200
Suite 10 - 1 Bdrm 590 1,040 1.76 12,480 1,400 2.37 16,800
Suite 11 - 2 Bdrm 720 1,195 1.66 14,340 1,700 2.36 20,400
Suite 12 - 2 Bdrm 760 1,400 1.84 16,800 1,700 2.24 20,400
Suite 13 - 2 Bdrm (Leased Sept 2020) 720 1,600 2.22 19,200 1,700 2.36 20,400
Suite 14 - 2 Bdrm 720 1,150 1.60 13,800 1,700 2.36 20,400
Suite 15 - 2 Bdrm 720 1,145 1.59 13,740 1,700 2.36 20,400
Suite 16 - 2 Bdrm 760 1,058 1.39 12,696 1,700 2.24 20,400
Suite 17 - 2 Bdrm 720 1,324 1.84 15,888 1,700 2.36 20,400
Laundry Income ($2 wash, $2 dry) 500 6,000 500 6,000
Parking Income (Suite 13) 100 1,200 1,500 18,000.00
Storage Income
T O TA L R E N TA L I N C O M E 22,263 267,156 28,600 343,200
% Vacancy and Credit Losses 1.00% 1.00% 1.00% 1.00%
T O TA L VAC A NCY L O S S 223 2,671 286 3,432
GROSS ANNUAL OPERATING INCOME 22,040 264,484 28,314 339,768
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 9CASH FLOW ANALYSIS
OPERATING EXPENSES
IN PLACE STABILIZED*
SOURCE
MONTHLY ANNUALLY MONTHLY ANNUALLY
Property Management Fees (3.00% of GOI) 661 7,935 8,548
Repairs and Maintenance (Estimate) 667 8,000 8,618
Real Estate Taxes (2020 Actual) 2,733 32,797 35,332
Rental Propery Insurance (2019 Actual) 884 10,613 11,433
Utilities (hydro, gas, water)
• Hydro (2019 Actual) 130 1,556 1,255
• Water and Sewer (2019 Actual) 361 4,326 4,660
• Gas (2019 Actual) 202 2,426 2,614
Snow Removal/Mowing (Estimate) 83 1,000 1,077
MONTHLY OPERATING EXPENSES 5,721 68,653 73,959
NET OPERATING INCOME (NOI)
Total Annual Operating Income 264,484 339,768
Total Annual Operating Expense 26% 68,653 22% 73,959
ANNUAL NET OPERATING INCOME 195,832 265,809
CAPITALIZATION RATE AND VALUATION
PROPERTY VALUATION 6,150,000 6,150,000
PER SUITE 384,375 384,375
ACTUAL CAPITALIZATION RATE 3.18% 4.32%
*
Stabilized operating expenses and net operating income are based upon 1.50% compounded annual increases
in expenses every year for the first five years of ownership. This analysis assumes 25% of suites turn over every
year and the property will be stabilized at the projected market rents by year 5.
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 10CAPITAL IMPROVEMENTS
• Flat roof and one section of shingle roof (back right)
replaced 2020
• House roof replaced 2002
• Shingles on back part of the roof (middle section) 2010
• Hallways and landings gutted and rebuilt (new insulation,
flooring, lighting and walls) 2013
• Windows – 90% of windows replaced as needed
from 2010-2020
• Flooring in each apartment replaced as needed
from 2002-2020
• Front porch and balcony on house renovated 2018
• Bell Fibe internet upgrade in all units 2019
• Suite 5 – kitchen, living room, bedroom and
floor renovations in 2020
• Suite 6 – kitchen, living room and floor
renovations in 2019
• Suites 13 and 17 – gutted and rebuilt 2013
BACK T O C O N T E N T S 11PROPERTY PHOTOS
EXTERIOR & COMMON AREAS
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 12PROPERTY PHOTOS
SUITE 2
SUITE 2 – 2 BEDROOM + LOFT (TOWNHOME)
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 13PROPERTY PHOTOS
SUITES 4 & 7
SUITE 4 – 2 BEDROOM
SUITE 7 – 2 BEDROOM
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 14PROPERTY PHOTOS
SUITES 9 & 17
SUITE 9 – 1 BEDROOM (LOFT)
SUITE 17 – 2 BEDROOM
2 3 7 L O R E T TA AV E S BACK T O C O N T E N T S 15OFFERING PROCEDURES
In order to comply with the Real Estate and Business Brokers Act, Ontario, the Code of Ethics of the Real Estate
Council of Ontario, and FINTRAC, the Advisor is required to make certain disclosures to a Buyer and Seller, clearly
document the representation relationship between the Advisor, Buyer and Seller, and collect and verify proof of
identity for all Buyers and Sellers in a real estate transaction. It is due to this legal requirement the Advisor makes
the following disclosures, and requests that each recipient of this CIM comply with FINTRAC requirements.
ADVISORS DISCLOSURES
• Seller shall be responsible for all fees payable to the Advisor
FINTRAC
• The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), enacted federal laws and
regulations which require the Advisor to collect and verify proof of the identity of all buyers or sellers
involved in a Canadian real estate transaction
• Upon entering into an Agreement of Purchase and Sale, the potential Buyer will be required to provide
identification documents as per the FINTRAC guidelines which can be found at www.fintrac.gc.ca
For more information:
FLORIAN NAGELSCHMITZ
BROKER
FLORIAN@CAPITALCOMMERCIAL.CA
1505 Carling Ave, 2nd Floor, Ottawa, ON
O: 613-518-2006 EXT.5 www.capitalcommercial.ca
C: 613-818-8667 info@capitalcommercial.ca
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