Just sold a plaza. Wanted feedback on the investment result.

Just sold a plaza. Wanted feedback on the investment result.

Member since 2019 · 13 posts · 5 votes
•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
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  • Real Estate Investor · London, Ontario · Member since 2014 · 31 posts · 20 votes
    7y

    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.

  • Member since 2019 · 13 posts · 5 votes
    7y

    Sounds good Dylan. Also own a big plaza on Belmont. Always looking for stuff in London. What's the link to the London forum?

  • j7n2j5 · Member since 2019 · 2 posts · 0 votes
    7y

    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.

  • Rental Property Investor · Member since 2018 · 78 posts · 11 votes
    7y

    Sound like good profit, can I ask how did you guys grouped together to buy that plaza ? were you friends or something ? 

  • Member since 2019 · 13 posts · 5 votes
    7y

    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.  

  • New to Real Estate · Toronto, Canada · Member since 2018 · 22 posts · 5 votes
    7y

    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.

  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    7y

    Victor bought in 2009 according to his post. That was the bottom of the markets for commercial in the U.S. Not sure about Canada but likely similar.

    You can still find deals but they are harder to find. Lot's of capital out there chasing deals.

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