INDUSTRIAL INVESTMENT OPPORTUNITY BOUNDARY BAY BUSINESS PARK PHASE ONE

VANCOUVER INDUSTRIAL MARKET

Summary

StatisticsQ4 2015 Q4 2016 Trend

Vacancy Rate 2.5% 1.9% ▼

YTD Net Absorption 1,114,368 S.F. 1,143,399 S.F. ▲

YTD New Supply 608,669 S.F. 974,193 S.F. ▲

Under Construction 1,183,696 S.F. 1,307,777 S.F. ▲

Weighted Avg

Asking Net Rent

PSF

$7.86 $8.62 ▲

Cap Rate (Class A) 5.15% 4.65% ▼

Cap Rate (Class B) 5.75% 5.50% ▼

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8151 CHURCHILL STREET, DELTAINVESTMENT HIGHLIGHTS

2017 N.O.I. $3,849,737

Avg. Net Rent PSF $8.75

Approx. Site Size 23.49 Acres

Average Remaining Lease

Term5 Years 6 Months

Proposed Sale Price/Cap

Rate

$97,500,000/

3.95%

Price PSF $221

Building Size 439,970 SqFt

Year Built 2014

Site Coverage 43% (Approx.)

Clear Height 36’

Loading Doors74 Dock

4 Grade

On-Site Trailer Parking Stalls 100 Stalls

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THE OPPORTUNITY

• To acquire a new generation, best in class Tier 1 distribution center in an AAA location

• Diverse national tenant mix with an average of 5.5 years lease term remaining

• Rents are arguably below market, with regional vacancy rate under 1.00%

• Strategic location with close proximity to the South Fraser Perimeter Road and Deltaport

• Scalable asset unlike any other opportunity currently being marketed

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OFFICE INVESTMENT OPPORTUNITYDOWNTOWN DISTRICT

THE LOCATION

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SURROUNDING CITY BLOCK

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PROPERTY DETAILS

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LEASING AND INCOME ASSUMPTIONS

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DOWNTOWN OFFICE INVESTMENT ACTIVITY

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MULTI-RES INVESTMENT OPPORTUNITY TOWER ON THE PARK, KERRISDALE

TOWER ON THE PARK, VANCOUVER

Park Tower – 40 IRR St, Vancouver, BC

Dimensions 462ft X 126 ft

Site Size 58,212 sf (1.33 acres)

Residential Units 83 (15 X Bch, 55 X 1-Bdrm, 13 X 2-Bdrm) -

18 renovated, 65 vacant and not renovated

Rentable Area 50,877 sf

Potential Additional

Density

90,000 sf (2.5 FSR)

West 41st

West 43rd

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OPPORTUNITY

Continue Renovations

Achievable Renovated Rents Bach: $1,450, 1-BR: $1,850,

2-BR: $2,300

Renovation Costs$25,000/unit => $1,625,000

remaining costs to renovate

Existing Renovated Units

Residential Units

18 renovated and leased

65 vacant and awaiting

renovation

Current Net Operating

Income

$132,473 (only 18/83 units

rented)

Potential Net Operating

Income after Renovation

and Lease Up

$1,444,340

+ 90,000 sf of unrealized density on additional land

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MARKET STATS

Kerrisdale Residential Land Comps

Address Price Per Buildable SF

6344-6386 E Blvd $486 pbsf (Oct 2016)

5344 E Blvd $501 pbsf (Aug 2016)

2068-2082 W 41st $550 pbsf (June 2016)

1770 Davie, Vancouver

$40M, 1.85%, $522K/unit

2145 Bellevue, West Van $28.3M, 1.4%,

$765K/unit

1441 St Georges, North Van $37.5M,

2.56%, $354K/unit

Kerrisdale Rental

Vacancy Rate

2015: 1.4%

2016: 0.8%

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INVESTMENT HIGHLIGHTS

Desirable Kerrisdale location (95 Walk

Score, 2016 HH Income of $200K)

Extremely well maintained and

professionally managed

Building is up to code

Scale – 83 Res. Units on a 1.33 acre lot

Successful renovation program in place

Tenant mix – majority of new

tenants are students

Extensive upgrades completed ($1M)

incl roof, plumbing, elevators & balconies

90,000 sf of undeveloped density – no

rezoning required

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