Montreal Boutique Hotel

874 Sherbrooke St East, Montreal, QC

Participate in the ownership of a boutique hotel, which currently consists of 18 rooms and a commercial unit located in Montreal, QC

The Plan: Renovate all 18 rooms and convert the commercial unit into 5 additional rooms over eight months while the Property is not in operations. The Property will have an automated property management system, and technology upgrades implemented to lower operating costs. Rooms will have a kitchen and en-suite laundry to allow for extended or long-term stays.

This property sold out to 800+ Canadians! These investments sell out quickly and they are reserved for our members.

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Estimated Term

2 Yrs

Estimated ROI

38.96%

Estimated IRR

17.88%

Estimated Owners' Days**

1

*The key numbers to explain how we make this estimate are available within your addy account. Investments in this property are restricted to British Columbia, Alberta, Ontario, and Quebec residents. Qualified members can invest from $1 and up to $1,500.

**This is the day when we issue a distribution, or the property exits — aka cash earned from doing zero things, aka #passiveincome. For this property, there is one Owners’ Day projected.

PROPERTY UPDATES

The Reel

Meet David Atwell, co-founder of HoneyTree Grow. As the General Partner (GP) of 874 Sherbrooke in Montreal, Quebec, he explains why he is excited to invest with addy in this property. This boutique hotel is close to La Fontaine Park, The Latin Quarter, and other Montreal attractions. He also highlights the plan for this property.

What are some of the pros and cons about the new addy property at 874 Sherbrooke in Montreal, Quebec? Stephen Jagger of the addy squad highlights some of the things to consider when thinking about investing in the 874 Sherbrooke property.

Spread of Investors

874 Sherbrooke - Spread of Investors

Estimated Returns

The information presented below represents expected results of a $500,000 maximum offering (subject to increase as the Issuer may from time to time determine) and may not reflect actual results. The expected return (IRR and ROI) based on your investment amount can fluctuate up or down based on many factors. Please review the entirety of the Offering Memorandum and understand the risks stated in “Item 9 – Risks Factors”. You are not liable beyond your investment amount.

The Gram

the highlights ✨

  • 874 Sherbrooke St. E. is located on the corner of Sherbrooke St. E. and St. Andre St in the Ville-Marie neighbourhood of Montreal. Accessibility via car is considered to be very good.
  • Sherbrooke St is a four-lane, two-way minor artery through Montreal. Also a public bus rote.
  • Sherbrooke St E is a commercial corridor that runs through downtown and inner city areas within the City, enabling accessibility to entertainment districts, restaurants and other points of interest.
  • St. Andre is a one-way, one-lane connector street southeast bound.
  • A mixed use zoning, largely residential in nature, though permitting commercial uses. Said commercial uses include a hotel, restaurant, to name a few.
  • Victorian-Era house built around the 1890s. Initially two stories; third was added in 2012. Overall well-maintained, with attractive exterior heritage elements. Stone and brick facing and stone foundation.
  • Exposure is considered to be good given the corner orientation particularly fronting along an arterial.
  • 18 rooms throughout floors 1 to 3, ranging in four different suite styles from Queen/double Queen to King. Rooms include private washrooms, work / side tables, and internet. Rooms have been updated, some with new flooring, though overall vary in finish, exhibiting historical elements such as fireplaces, columns, mouldings & bay windows in select suites. Rooms are appealing in finish and quality/condition, overall.
  • Easy access to transit; 5 minutes away from Sherbrooke Subway Station and bus stops.
  • Currently not in operation; ready to renovate.
  • Represents an ‘annex’ building to the Hotel de Paris, located across the street at 901 Sherbrooke Street E, of which it has operated with in conjuction under said banner. As such, there is no reception or lobby.

Near the Property

About Ville-Marie/Central Montreal

  • Ville-Marie is a borough in the center of the city of Montréal, Québec. Primary access to the area is provided via main arterials such as Sherbrooke Street, Maisonneuve Boulevard, Boulevard René-Lévesque and De La Gauchetière Street West.
  • Additionally a number of major highways run through and connect to the area such as Highways 10 and 720. The area is also serviced by a number of forms of public transit such as commuter train, bus and metro.
  • Ville-Marie comprises the main Downtown Core, Old Montréal, and three of Montréal’s four universities: McGill University, concordia University and Université du Québec à Montréal.
  • The Downtown Core in Ville Marie is the main center of employment in Québec, with over 300,000 people working in its vicinity. Office buildings make up the bulk of the Downtown Core, with professional and financial services as the primary employment sectors.
  • Other commercial businesses in the area include restaurants, cinemas, large stores/several malls, and restaurants. There are also many hotels in the area, as well as what is known as the “Quartier des Spectacles,” a known cultural district within the City housing museums, performance halls / theatres as well as outdoor festivals.
  • Walk Score of 88; second most walkable neighbourhod in Montreal.
  • Green spaces includes La Fontaine Park, St. Helen’s Island, Mount Royal Park.
  • Walk or transit to bars, resaturants, museums, Cathedrals and the Bell Centre.
  • Includes popular destinations such as Old Montreal, Gay Village, Latin Quarter, Bell Centre, Montreal Museum of Fine Arts, Notre Dame Basilica of Montreal, Mary, Queen of the World Cathedral, Barbie Expo, La Grande roue de Montréal and Montreal Science Centre.

Location in Montreal

874 Sherbrooke ST E - Location Map

Click here to view location on Google Maps

Get To Know Montreal, Quebec

  • Montreal; officially Montréal, French: is the second-most populous city in Canada and most populous city in the Canadian province of Quebec. Founded in 1642 as Ville-Marie, or “City of Mary”, it is named after Mount Royal, the triple-peaked hill in the heart of the city. The city is situated 196 km east of the national capital Ottawa, and 258 km southwest of the provincial capital, Quebec City.
  • Montreal has hosted multiple international conferences and events, including the 1967 International and Universal Exposition and the 1976 Summer Olympics. It is the only Canadian city to have held the Summer Olympics. In 2018, Montreal was ranked as a global city. The city hosts the Canadian Grand Prix of Formula One since 1978, as well as the Montreal International Jazz Festival, the largest jazz festival in the world, the Just for Laughs festival, the largest comedy festival in the world, and Les Francos de Montréal, which is the largest event devoted exclusively to French-language music anywhere in the world. It is also home to ice hockey team Montreal Canadiens, the franchise with the most Stanley Cup wins.
  • Montreal is in the southwest of the province of Quebec. The city covers most of the Island of Montreal at the confluence of the Saint Lawrence and Ottawa Rivers. The port of Montreal lies at one end of the Saint Lawrence Seaway, the river gateway that stretches from the Great Lakes to the Atlantic.
  • The city of Montreal is world-renowned for in the top 20 most cyclist-friendly cities around the globe. It follows that they have one of the world’s most successful bike share systems in BIXI.

Montreal Residential Market

  • Average sold prices reached $565K in November 2021, a 13% annual increase
  • Sales activity is lower this month with single-family homes leading the way in terms of year-over-year declines in sales
  • Median single-family detached prices increased by 21% year-over-year to $525k
  • Median condo prices increased by 18% year-over-year to $374k
  • Median plex prices increased by 15% year-over-year to $725k

Montreal Tourism

  • Tourism activity picked up a bit last summer (2021) in the metropolis, but remained well below what was seen before the start of the COVID-19 pandemic.
  • The average hotel occupancy rate was 38.5 per cent last summer, up 22.7 per cent from 2020, but 47.5 per cent lower than the summer of 2019.
  • Tourism Montreal noted a 199 per cent increase in international tourists last July compared to the corresponding month in 2020, but still 92.5 per cent below July 2019. Passenger traffic at Montreal Airport last July was 75.2 per cent lower than July 2019.
  • As for traffic at Montreal attractions last June, it was 16 per cent higher than June 2020, but 75 per cent lower than June 2019.
  • Tourism in Montreal was enjoying its best days before the pandemic, setting new records in attendance year after year, a surge that was interrupted by the health crisis, according to the organization.
  • Expected some semblance of normalcy for the peak 2022 summer travel season.

General Partner Type

GP Types - Coming Up

Coming Up

These General Partners are new and this may be their first time running a project or have not had any come to completion yet. In many cases, they have experience in a senior-level role in real estate or similar but have recently moved into the General Partner role (Learn more).

Meet The General Partner

874 Sherbrooke - GP - Honey Tree Grow

HoneyTree was founded in 2016 by David Atwell. David was working as an accountant in the film industry after leaving his past life of beekeeping. David quickly became a hit on set as he would bring his homegrown honey to share with the cast and crew.

While working in the film industry. David noticed that many colleagues were self-employed and owned their homes but had no pension or retirement plan. David started by bringing in his close friends and families on some real estate deals and the word spread. From there, HoneyTree was founded in 2016, and he and his partner, Mark Gonneau never looked back!

Dr. Mark Gonneau is an award-winning real estate investor who began investing in real estate at the age of 24 while still a student. Since then, he has invested in various forms of real estate across Canada and abroad.

He has transacted on over $100M of real estate in the past 15 years and was named “Top 10 Investor” in Ontario in 2008, 2009, 2011, 2014 & 2015 as well as “Player of the Year” in 2014 by the Real Estate Investment Network.

He is focused on helping professionals and business owners make smarter investing decisions by investing in value-add real estate opportunities.”

The Investment Type

Value-Add Opportunistic Investment Type

Value-Add

Risk profile: 

Moderate to high

Investor type:

For investors willing to take on more risk to achieve high returns and are willing to wait longer before they begin receiving returns for their investment.

What defines the risk level?  

A Value-Add investment often has little to no cash flow at acquisition but has the potential to produce a tremendous amount of cash flow once the value has been added (for example physical upgrades, better management, added services or more effective marketing).

The Community investment committee

Purchase decisions are made collectively by our community investment committee and our Board of Directors which has a track record of investing in and managing real estate (learn more here). The Investment Committee for this property includes:

Rajvinder Khatar
RBC Executive | ICBC Director

Vote: 👍

Montreal is a world-class city that offers an attractive return to tourism for both domestic and international travelers. This unique property is in a great location, offering a boutique experience. With the right work it can be a very popular destination.

Cameron Rogers

Cameron RogerS
INVESTMENT COMMITTEE

Vote: 👍

Andrew Gaucher
Vice President, McKinley Beach, GGroup

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What our members are saying

“It was an easy way to invest some funds in real estate that I would normally not be able to afford on my own. It’s great to be part of something that is creating a new way of investing.”

Klaus / Toronto, ON

“My wife and I are excited to have discovered addy, and invested in a Starbucks location nearby — it’s nice to be able to participate in owning commercial real estate without putting up a bunch of money, and knowing we can drive by it anytime makes it more fun than buying stocks!” 

Shawn / Nanaimo, BC

“This is God sent, if you ask me. A chance to own a slice of commercial properties all over the country. An opportunity I otherwise wouldn’t have had had it not been for addy. I can’t thank addy enough. I eagerly await for addys to drop and with each investment, I know I’m actively improving my financial future.”

Jocelyn Armah / Google Review

What our members are saying on Discord

“addy is a great platform that allows individuals to break through into the real estate market without having to deal with lawyers, agents, and most of all the rising housing prices. Most importantly, the addy discord provides a great platform for a diverse community to discuss ideas as it relates to real estate and other financial related topics. I have already learned a lot from the conversations and discussions from the Discord to make better informed investing decisions for my future”

$nitintailor / Toronto, ON

“addy has let me get into a market I never thought I could be in! The community in Discord allows me to be connected to others, receive tips and have fun while making investments right for me! Thank you addy!”

$Wanderlust / Vancouver, BC

“Before breakfast and I already bought into a commercial building in Hamilton. No running around looking at buildings or doing do due diligence. No extra costs. No trips to the lawyers. This is the world’s easiest way to buy real estate.”

$Cameron / Abbotsford, BC

How Do You 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 Memorandum for each property.

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