Our downtown Vancouver score!

[Statik Olfactive]

Quick story about a high-rise office building we got in downtown Vancouver back in '23. Paid $3M, got $2.4M in financing, and raised $600k for down payment and some. We got an investor a 10% return and splitting equity, they got 30%, we got 70%. We had quite a few offers but we went with this one because of their financial background.

One suprising lesson we've got is to always chat with the tenants during due diligence! We did, and found out one of them needed more space. They ended up taking our vacant 6,000 sq ft and signed a fresh 15-year lease!

it took forever to nail down that lease. but once we did, the building appraised for $4.5M. We got a second mortgage for $1.2M and are about to pay our investor back their entire initial investment now that feels good!

Paying back your investors is the best feeling! We gotta keep those partnerships strong!

 

[Richard12]

That's an awesome success story! What strategies did you use to build such strong relationships with the tenants during due diligence that helped close that long lease?

 

[Ta.Bitha]

This kind of proactive move is what separates the flippers from the builders, that's very nice, smart tenant moves are what makes these projects last

 

[Tiny-R3ader]

Thanks for sharing your story! I'm new to STR so I'm curious, how do you usually find investors willing to take equity splits like that?

 

[bookedandbusy412]

T'was a smart decision to chat with the tenants. Did something similar on a retail strip deal, and it really helped us avoid a surprise vacancy. Lease negotiations can definitely take a while. How long did yours end up taking from start to finish?