Astra Block Industrial

1122 40 Avenue NE, Calgary, AB

This is an opportunity to participate in the ownership, upgrading and renovating of an Industrial building situated upon 1122 40th Avenue NE, in Calgary Alberta.

The Plan: The Issuer plans on upgrading and renovating the Industrial building situated upon 1122 40th Avenue NE, in Calgary Alberta, to generate cashflow and profit from leases. The property is intended to produce increased revenue after enhancements. The Issuer plans to start quarterly distributions to investors from the second to the fifth year of the project or until a 15% Internal Rate of Return is reached, whichever is earlier.

 

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Financial Return

PRIMARY RETURN

16

5 Years

ISSUER

*The key numbers to explain how the Issuer has made this estimate are available within your addy account. Investments in this property are open to residents of British Columbia, Alberta, Ontario, Saskatchewan, New Brunswick, Nova Scotia, and Manitoba, above the age of the majority. The investment minimum on this property is $1.

 

 

ways to Payout

The Issuer plans to enhance the warehouse with the aim of boosting revenue. Following the completion of these upgrades, the Issuer intends to commence quarterly distributions to investors from the second year of the project through to the fifth year, or until achieving a target Internal Rate of Return (IRR) of 15%, whichever comes first.

The investment term is set for up to 5 years, offering an option for early redemption if a 15% Internal Rate of Return (IRR) target is met. Upon exit, redemption will be facilitated either by refinancing the property or through the issuer repurchasing the investors’ units by selling the ownership stake to a private equity firm.

The Reel

The Gram

the highlights

  • The subject property is an industrial site located at 1122 40 Avenue NE, Calgary, AB.
  • It features a single general purpose industrial building totaling 35,617 square feet of net rentable space.
  • The building was constructed in 1972 and has undergone recent renovations.
  • The overall condition, quality, and appeal to tenants are considered average.
  • The property itself sits on approximately 1.6 acres of land.
  • An appraisal conducted in June 2023 determined the market value of the property “as is” and leased fee interest to be $6,710,000.

Location in Calgary, AB

Click here to view location on Google Maps

 

 

About Neighbourhood

  • The subject property is in Mccall which is an industrial district in the northeast quadrant of Calgary, Alberta.
  • Land uses in the surrounding area consist of medium density residential uses, retail shopping centres and restaurants.
  • There is an average availability of amenities and schools within the immediate area of the subject property.
  • Calgary Transit is available within walking distance.

About Real Estate Market

National Economic Context

Canada’s economic landscape faces challenges characterized by persistent inflation and sluggish wage growth, undermining consumer purchasing power. This backdrop, marked by the Bank of Canada’s aggressive interest rate hikes to combat inflation, signals a looming moderate recession. Economic growth is anticipated to significantly trail its long-term trend, with rising unemployment rates as sectoral job growth decelerates and job vacancies retract from their peaks. Particularly, the real estate sector, notably housing, is experiencing adjustments due to these macroeconomic shifts. Despite these headwinds, the Bank of Canada’s conditional pause on rate hikes provides a temporal reprieve, reflecting a cautious approach to navigating the ongoing economic turbulence. Internationally, inflationary pressures, exacerbated by geopolitical tensions and energy market disruptions, underscore the critical balancing act faced by monetary authorities globally and domestically.

Alberta: A Regional Economic Powerhouse

Alberta emerges as a bright spot within Canada’s economy, buoyed by robust crude oil markets and dynamic activity in the oil sector. Despite fluctuations in WTI prices, the province’s energy sector is poised for growth, supported by increased oil production and strategic infrastructure projects like the TMX expansion. Alberta’s economic resilience is further bolstered by strong migration trends and a proactive fiscal strategy aimed at debt reduction and sustainable growth. These factors collectively position Alberta, particularly the Calgary area, as a region of significant growth potential amidst broader national economic challenges.

Calgary’s Industrial Market: A Beacon of Opportunity

In the industrial real estate sector, Calgary stands out with its expansive development cycle and historically low vacancy rates. The market’s competitive rental growth and strategic positioning as a western Canadian distribution hub underscore its attractiveness to service firms and investors alike. Notably, the ongoing construction boom and favorable economic indicators suggest Calgary’s industrial sector as a promising area for investment, offering both yield opportunities and growth potential amidst national and global economic headwinds.

National Industrial Market: Resilience and Growth

Canada’s industrial market demonstrates exceptional resilience, driven by strong demand for logistics and warehouse space amidst global supply chain challenges. The sector’s tightness, reflected in rising lease rates and robust investment activity, highlights the industrial real estate’s appeal as an investment class. Despite economic uncertainties, the fundamentals of low vacancy, high demand, and strategic new developments position the Canadian industrial market for sustained growth and investment attractiveness.


 

 

The Issuer

Astra is a group of companies that work synergistically to create more equitable, sustainable housing and value for stakeholders.

Astra Group includes development, construction, property management, and ownership. This wholistic approach enables us to integrate our values throughout our operations. With this model, we work with stakeholders to create building environments that benefit the planet, our communities, and the people who live in them.

In our 10 years, we have expanded from a premier commercial-residential renovator into a group of companies leading the way in Western Canada in terms of impact development and adaptive reuse. Our steady growth is based on an innovative approach to fiscal, environmental, social, and governance responsibility

 

 

The Dealer

Investing in crowdfunding and exempt market offerings has significant risk. Investors may not be able to resell their securities quickly or at all and the securities may be subject to resale restrictions. These investment opportunities may result in the loss of all or most of your investment. You may receive limited ongoing information about a company or an investment made through Atlas One. Please be aware that investments offered by third-parties through this Atlas One operated Platform are risky. These investment opportunities may result in the loss of all or most of your investment. You may receive limited ongoing information about a company or an investment made through Atlas One.

This Offering has the following investment profile, which may not be aligned with your own circumstances

  • Risk tolerance/capacity: High Risk
  • Investment time horizon: 5 years
  • Investment Objective: Growth
  • Investment knowledge/experience required: Fair/Moderate

 

Due Diligence

Become a Member!

To review all of the Due Diligence documents including investor deck, appraisal, and other confidential materials you need to be a member. Join us today! Already a member? Log into your account to review.

How Do I Make Money?

You can make money in 2 ways:

  1. Sale of the Property: When the property is sold, any appreciation is paid back to investors in addition to their investment principal.
  2. Rental Income: When tenants pay rent, additional cash flow can be passed back to investors in the form of a distribution.

Details are outlined in the Offering Documents for each property.

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