235 Jarvis St, Toronto, Ontario
Unlocking Commercial Property Value and Development Potential
Achieved 38% Annual ROI Through a Strategic Investment Plan
By carefully assessing the property, we determined there was an opportunity to achieve a high ROI for our investors.
Crafting and following a strategic investment plan allowed us to optimize results for our investors.
Return on Investment
Achieved annual ROI of 38% for investors from an original investment of $2.4 M to a return of $3.6 M.
At DMCC Holdings, we acquire commercial real estate investment properties where we can unlock significant value and which are poised to benefit from economic growth. Our investors benefit from both immediate cash flow and an increase in capital appreciation.
This project began with the acquisition of a property located at Jarvis St. and Dundas St. in Toronto. At de-acquisition, we were able to achieve our goal of a favourable sale to a developer, generating significant ROI for our investors over a 4 year span.
Through our proven approach to commercial real estate investment, we are able to identify those properties which have the greatest potential for us to create value, and in turn, achieve exceptional returns for our investors.
The Investment Opportunity
Upon assessment of the property at Jarvis and Dundas, we determined it was located in an upcoming area and therefore offered a major opportunity to achieve a high ROI for our investors over a 3-5 year investment horizon.
The factors which influenced this decision included:
- Two respected hotels on either side of the property (a Hilton and The Grand)
- Located steps away from Ryerson University and Yonge-Dundas Square
- Government had recently purchased the site across the street
- Directly in front of the property was an empty plot of land, later purchased by the developer Great Gulf Homes
- Development plots existed down the street
Once we concluded the property met our investment criteria and showed potential for exceptional returns, purchased it in partnership with our investors in 2010 with the exit strategy of allowing it to appreciate in value, then selling it to a developer.
Building upon this strategy, we negotiated an agreement with the neighbouring property owner, stating both parties would sell to a developer at the same time, when the timing offered optimal returns.
Achieved 38% Annual ROI
- 2010 Initial Investment ($2.4 Million)
- 2014 Investor Exit ($3.6 Million)
Following our plan, we sold the property in 2014 to Parallax Investment Corp., a developer who planned to build a 40+ storey residential/commercial condo on the location. In addition to the sale, we also won the contract to manage the property until the tenants had moved out to allow condo construction.
The property was purchased for $2.4 Million in 2010 and increased in value by $3.6 Million at the time of sale in 2014, generating a 153% ROI for our investors over 4 years.