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Retreat Condos

3291 Kingston Rd and 2&4 Windy Ridge, Toronto, ON

The opportunity is to participate in the ownership of a 357-unit condo development situated at the address of 3291 Kingston Rd and 2&4 Windy Ridge in Scarborough, Toronto, Ontario.

The Plan: The objective is to build a contemporary 11-storey residential, mid-rise condominium building within a 48-month timeframe and subsequently sell the individual units.

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Financial Return

PRIMARY RETURN

1

4 Years

LCH Developments logo

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 all residents in Canada above the age of the majority. Qualified members can invest from $1.

 

ways to Payout

When evaluating commercial real estate deals there are 5 primary ways an investment pays out: Cash Flow, Passive Appreciation, Mortgage Paydown, Active Appreciation, and Levered Returns on Equity. Learn more about these factors here.

Things to note about this property:

  • The project is in pre-development to build 357 condominium units within a 48-month timeframe. The projected profit for this project is targeted to be $30M.
  • Upon exiting the project, unit holders may receive the following:
    • A return of their equity, which is proportionate to their initial investment.
    • A preferred non-compounded return of 10%.
    • A pro-rata share of the profits based on their initial investment
    • If the unit holders achieve 20.5% IRR then they may receive 25% of the remaining proceeds, distributed proportionately to their initial investment.

The Reel

The Gram

the highlights

  • Three parcels of land with a land mass of 1.5 acres are being developed to offer 230,000 sqft of gross constructible floor area with over 205,000+ sqft of salable space.
  • Sitting at the corner of Kingston and Ravine, the project is situated in an affluent South Central Scarborough neighborhood surrounded by large ravine lots located adjacent to the development lands
  • Exquisite parks such as the Doris McCarthy trail, the Scarborough Bluffs, and Highland Creek are located steps away

  • 357 Condominiums Units
  • Brand New Building
  • Located on Kingston Rd
  • Walking distance to Scarborough GO. The Project site less than 1.5km away from the Eglinton GO Station.

Location in Toronto

Click here to view location on Google Maps

 

About Neighbourhood

  • The property is located at the southeast corner of Kingston Road and Windy Ridge Road. The subject benefits from its proximity to both Markham Road and McCowan Road, which lead to Highway 401. To the east of the property are apartment buildings while to the west are medium density townhouse developments. To the north are commercial buildings (hotels) and to the south are single family residential dwellings.
  • Sitting at the corner of Kingston and Ravine, the project is situated in an affluent South Central Scarborough neighborhood surrounded by large ravine lots located adjacent to the development lands
  • Exquisite parks such as the Doris McCarthy trail, the Scarborough Bluffs, and Highland Creek are located steps away
  • This development is located between the Cliffside community and Scarborough Village, steps away from the waterfront.


About Real Estate Market

Toronto Multifamily 2023 Outlook

The demand for apartments has increased due to a rise in immigration, a continued return to office, and high homeownership costs, causing a drop in the multifamily vacancy rate to pre-pandemic levels. The Pickering and Ajax submarket have reached near-full occupancy, and some parts of Etobicoke and North York also recorded ultra-low availability. Toronto is expected to see another surge in new settlers this year as the federal government plans to admit a record number of permanent residents. Elevated borrowing costs and short supply are expected to send rents higher despite the expected increase in apartment deliveries.

Total employment is projected to decrease by 1.3 per cent in 2023, resulting in a slight uptick in the unemployment rate. Of the 13,500 units under construction, roughly 45 per cent are expected for delivery in 2023, a 75 per cent increase from 2022, which is fueled by delayed completions of projects that started construction during the pandemic. Following a significant drop in 2022, the vacancy rate is expected to continue to trend down but register a smaller decrease in 2023. Healthy rental demand is expected to continue to put upward pressure on the average effective rent, which is expected to rise above $1,750 per month, a 20 per cent increase from the 2019 level.

2022 Overview

In 2022, construction activity fell from its peak seen in 2021 to a level that is consistent with its pre-pandemic trend. Approximately 40 percent of the deliveries were in Central and North Toronto, followed by 640 units in West Brampton. An increase in immigration and rapidly-rising home purchasing costs bolstered demand for apartment rentals, causing the metro’s multifamily vacancy rate to plummet below 2 per cent. The largest availability declines were seen in West Toronto, York and East. The average effective rent in the metro recorded its highest pace of growth since the onset of the pandemic, rising by $100 per month. This was the largest increase since 1990.

Sale volumes contracted in 2022 on the heels of rising borrowing costs, mostly in York, Oakville and Old Toronto. The largest decrease was recorded in the $10 million to $20 million category, with total dollar volume traded dipping 38 per cent below the previous year’s level. The average sale price advanced roughly 15 per cent to almost $360,000 per unit in 2022, which was one of the highest growth rates in Canada. The average cap rate remained relatively stable throughout the year, likely due to strong rent growth that boosted operating incomes. Toronto’s long-awaited Eglinton Crosstown LRT is expected to begin operations as early as this summer, improving livability in the surrounding area, and future investment is likely to occur.


 

The Issuer

LCH Developments, established by two driven, first-generation Polish immigrant brothers, Michal and Lukasz Wywrot, is a forward-thinking real estate development company revolutionizing the Greater Toronto Area (GTA).

This grassroots business emerged from humble beginnings in 2007 with limited resources and capital at its disposal. Through the implementation of innovative investment strategies, the brothers successfully procured an array of properties using diverse approaches such as student rentals, rent-to-own, multifamily, conversion, and buy-rent-refinance. In 2013, the brothers ventured into the domain of real estate development by constructing custom homes and townhouses. By 2017, LCH had shifted its focus to the development of high-density mid-rise buildings, prompting the pursuit of community-building initiatives and other exciting growth prospects for the company.

LCH Developments is currently completing its first major mid-rise project, “Merge Condos”, which is set to become a new iconic landmark in the growing Scarborough Bluffs skyline. With the success of this project, LCH has five other mid-rise projects with over 1,200 units in the pipeline.

What sets LCH Developments apart is the management team’s unwavering will to become a leader in the GTA development community by creating true live-work-play communities. The company’s first ‘Lifestyle Business’, Merge Spaces, a vibrant coworking hub located right next to Merge Condos in Toronto’s Cliffside Village, is a testament to this philosophy.

 

The Dealer

Equivesto is on a journey to reimagine how private company investment and fundraising is done in Canada. They believe in a future where access to equity investments and opportunities are not limited by privilege or network. They look to design a tomorrow that is driven on community values and collaboration.

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 Equivesto. Please be aware that investments offered by third-parties through this Equivesto operated offering are risky. You may receive limited ongoing information about a company or an investment made through Equivesto.

 

Due Diligence

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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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