Bowmanville Commercial Plaza
Unlocking Commercial Property Value and Development Potential
Achieved a 205% ROI for Investors Through Rent Increases
By carefully assessing the property, we determined there was an opportunity to achieve a high ROI for our investors.
Strategic Lease Negotiations
We were able to achieve significant profit by increasing rent as the property’s leases came up for renewal or ended.
Return on Investment
Over a 6 year period, the property increased in value by 45% and our investors realized a 205% ROI.
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.
While we expect capital appreciation to occur over time, there are several methods by which we actively unlock an investment property’s hidden value. Doing so is central to our investment philosophy.
Project Bowmanville started with the acquisition of a commercial plaza in Bowmanville, Ontario. Post Project and at de-acquisition, we were able to unlock its potential value and generate significant ROI for our investors over a 6 year span.
Through our proven approach to commercial real estate investment, we are able to unlock the potential of investment properties like the Bowmanville Plaza, and in turn, increase their value to achieve exceptional returns for our investors.
The Investment Opportunity
Bowmanville Plaza was a fully leased commercial plaza in the busy Greater Toronto Area in Ontario, Canada.
Through our due diligence process, we determined this property offered three major opportunities to achieve a high ROI for our investors:
1. The Cap Rate on purchase was 10%, which we knew would fall due to our analysis of the current market situation.
2. Upgrading the current tenant class would increase the value of the asset.
3. The plaza was located in an area that was poised for growth.
Having met our investment criteria and showing potential for exceptional returns, we purchased Bowmanville Plaza for our investors in November 2009.
Our immediate focus was to bring in higher paying tenants, which we implemented as the property’s leases came up for renewal or ended.
We achieved significant profit through the complementary factors of:
- Decreasing Cap Rate over time
- Increase in rents
- Profits from net operating income
- Mortgage pay down
Achieved 34% Annual ROI
- 2009 Initial Investment ($325,125)
- 2015 Investor Exit ($666,302)
The decreasing Cap Rate coupled with higher paying tenants added over $381,000 to the value of the plaza.
Over the 6 year period during which we held the property, it increased in value by 45% and our investors realized a 205% ROI.
- Original investment: $325,125
- Total return: $666,302
- Annual ROI: 34%