This property sold out to 800+ Canadians!

The Cornerstone

909 5th Ave SW, Calgary, AB

The Cornerstone project is a current initiative focused on transforming a vacant ten-floor office building into a residential complex. Situated at the intersection of 5th Avenue SW and 8th Street SW in the west end of downtown Calgary, the property is strategically located.

The Plan: Convert the 10-floor office tower into 112 family-oriented apartments spread across eight floors, the second floor as a co-working space while the ground floor will continue to serve as a retail area. The project is already under construction and is expected to be completed in 2023.

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Financial Return

PRIMARY RETURN

1+

3 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 restricted to British Columbia, Alberta, Ontario, and Saskatchewan residents. Qualified members can invest from $1 and up to $2,500.

**This is the day when the Issuer completes a distribution, or the property exits — aka cash earned from doing zero things, aka #passiveincome. For this property, there is predicated to be 1+ Owners’ Days.

Spread of Investors

The Issuer

Maxim Olshevsky, CEO of Astra Group and Managing Director of Peoplefirst Developments, is an entrepreneur, investor, and visionary with 19 years of experience in the real estate development and construction industry. Specializing in adaptive reuse and office-to-residential conversions, Maxim has a unique ability to unlock potential in under-utilized spaces and create value for communities and partners.

Early in his real estate career, Maxim focused on acquiring and repurposing various small to mid-sized under-utilized buildings, making a positive impact on their communities. Driven by a desire to create an even greater impact, he identified the potential in large-scale office tower conversions. Recognizing the shifting landscape propelled by the Covid pandemic, Maxim saw the untapped potential in office-to-residential conversions, positioning himself at the forefront of this promising industry.

His determination led to the acquisition of 500,000 sq. ft. of space in under two years. Maxim’s calculated and decisive approach established him as a visionary in this emerging industry – being amongst the first to take action. Now, he leads a dedicated team that transforms vacant office towers into residential spaces, emphasizing affordability, sustainability, and community vibrancy.

Currently at the helm of three major projects in the Calgary market, Maxim is playing a significant role in the city’s revitalization efforts. As an investor, his focus on large-scale projects and innovative solutions offers confidence and a positive outlook for those partnering with him in Calgary’s real estate market. Maxim’s goals are shaped by his desire to utilize his talents, resources, teams, and hands-on approach to ensure a bright and prosperous future for the city he calls home.

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: 3-5 years
  • Investment Objective: Growth
  • Investment knowledge/experience required: Fair/Moderate

The Reel

The Gram

the highlights ✨

  • The current list of retail tenants are as follows:
    • Quesada
    • Pharmacy
  • The improvements to the property are assumed to represent brand new construction.
  • $7,200,000 grant on the project
  • The 112 units consists of:
Units #
Two bedroom/one bath 16
Three bedroom/one bath 16
Two bedroom/one bath 36
Three bedroom/one bath 16
Two bedroom/One bath 12
Two bedroom/One bath 16
Parking 74

Near the Property

About Neighbourhood

The property is located in the highly regarded Downtown Commercial Core, which serves as Calgary’s central business district. This vibrant district has a rich history, dating back to the establishment of the Canadian Pacific Railway. The presence of the railway shaped the city’s street and avenue layout, leading to the development of numerous sandstone buildings around the turn of the century. Many of these historic structures, now restored, contribute to the cultural and historical significance of Calgary’s business district, particularly along Stephen Avenue.

Calgary boasts the highest concentration of corporate headquarters in Western Canada, with approximately one in seven of Canada’s major corporate headquarters being based here. Given Calgary’s status as Canada’s energy capital, it’s no surprise that nearly three-quarters of these head offices are primarily involved in the energy sector. Additionally, headquarters supporting financial services, manufacturing, transportation, logistics, and retail sectors are also present in the city.

The Downtown Commercial Core offers a range of conveniences and amenities for residents and businesses alike. These include the Light Rail Transit System, the +15 pedestrian system, Olympic Plaza, the Devonian Gardens, TD Square, the Glenbow Museum, Vertigo Theatre, and the Jack Singer Concert Hall. These facilities enhance the overall appeal and functionality of the Downtown Commercial Core.

Location in Calgary

Click here to view location on Google Maps

About Real Estate Market

Downtown Calgary Development Incentive Program

Calgary’s downtown office vacancy rates are high, with approximately 14 million square feet of office space currently vacant, or around 32.6%. This is a concerning situation as it poses a risk to the city’s vibrancy, economic competitiveness, and fiscal sustainability.

To address this issue, the Calgary City Council has approved a $100 million investment in the Downtown Calgary Development Incentive Program. The program aims to remove at least six million square feet of office space from the market by offering grants for building owners to convert their underused or vacant office space to other uses such as residential.

Most buildings participating in the program are largely vacant, and building owners are not required to convert their entire building. However, a minimum conversion area of 40,000 square feet is required to be eligible for the program.

Building owners are also required to submit a ‘tenant relocation plan’ as part of their application if they have existing tenants that will be displaced through a building conversion.

The program offers a grant of $75 per square foot for office to residential conversions, up to a maximum of $10 million per property, under Administration approval. Requests exceeding $10 million require Council approval.

Current Calgary Downtown Office Stats:

  • Current Vacancy is at 32.6%
  • 130K square feet Net Absorption*
  • There is 0 square feet under construction
  • $12.55 is the net asking rent per square feet
  • While there may be positive developments in the near future, a longer-term look reveals a continuous upward trend in vacancy rates and a concurrent decrease in net absorption, suggesting potential challenges for the real estate market in the future.

Net absorption refers to the net change in the amount of leased real estate space in a particular market over a given period of time. It is calculated by subtracting the amount of commercial real estate space vacated by tenants during the period from the amount of space leased by tenants during the same period. Positive net absorption is a good sign for the market as more space is being leased than is being vacated.

Calgary Multifamily

  • Calgary’s rental market is predicted to remain in high demand for 2023 due to several factors, including a growing population, a thriving labor market, and a fallback in home buying. Alberta had the 2nd fastest rates of annual rent increases in 2022, with a high influx of residents from Ontario and British Columbia.
  • Calgary’s rental rates are significantly lower than Toronto and Vancouver, and with steady economic growth, higher borrowing costs for mortgages, and new purpose-built rental developments, the rental market is expected to remain strong in 2023.
  • The rental vacancy rate dropped to 1.2% in stabilized buildings by the end of 2022, and with 29 new projects launched, adding 3,078 rental units to the market, rents are expected to increase by at least 5% in 2023. Calgary’s affordability and desirability, with hundreds of new jobs becoming available, make it an attractive city for people to reside in.

Sources:

Calgary Development Incentive Program

Calgary Downtown Office Figures Q4 2022

Calgary Multi-Family Q4 2022

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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