•1326 Huron Street, London Ontario (Pizza Hut Plaza) •8500 Square foot plaza purchased in 2009 for $1,750,000 •Each shareholder invested $79,000 •In the 9 years of ownership each shareholder was paid back the initial investment from the profits •Building was sold in late 2018 for $3,300,000 •Total payout after sale of $295,000 per shareholder •Total profit of 375% of the initial investment in 9 years
That's not bad at all Victor. I'm an Investor in London. If you still play here and are looking to make some connections feel free to reach out. I'm one of the moderators of the Real Estate Association of London
I'll shoot you a colleague request for a soft connection. Maybe our paths will cross sometime.
How does somebody go about becoming an investor in such a plaza deal? It seems like a much better investment then buying a residential rental unit as the lone owner/landlord and a huge r.o.i. after only 3 years.
Our company does a lot of group investing for small to midsize investors. We always own a piece of all the properties, to show we have skin in the game. All the investors are equal shareholders in any investment property. Commercial property prices have gotten pretty crazy. You used to be able to get decent cap rates (7% to 9%) In the second or third tier markets. It's much harder now. We've sold off most of our commercial investments and have been busy redeploying the money in the condo markets in Toronto & Hamilton.
In terms of how we did it? We have a proper shareholder agreement that is prepared by the lawyer. We usually only invite people that are known or are referred by someone in the group.
That's a great deal. and far better returns than rental market investment. I am currently in USA and moving to Canada in May. I am actively looking to invest my money in real estate and network with like minded people. Thank you for posting here.