Broker Round-up: The History Behind Key Deals in the Past 18

Months and What Deals are Anticipated Over the Next 12?

Moderator: Joe Hoffer, Cohen Highley LLP

Panelists

Jean-Charles Angers- RBC Capital Markets Real Estate Group Michael Betsalel- Colliers International Lance Coulson- CBRE Limited James Roy- Royal LePage Commercial

Recent Transactions Across the Country in the Last 12 Months

Recent Multi-Family Transactions – Greater Vancouver

LOCATION # OF DEALS AVERAGE PRICE PER SUITE CAP RATE RANGE

Vancouver (East Side) 8 $220,376 4.25% - 4.75%

Vancouver (Kerrisdale) 6 $413,901 3.25% - 3.75%

Vancouver (Kitsilano) 7 $336,845 2.7% - 3.2%

Vancouver (Marpole) 3 $220,529 3.75% - 4.50%

Vancouver (South Granville) 4 $263,108 3.5% - 4.0%

Vancouver (West End) 5 $282,500 3.0% - 3.75%

Burnaby 13 $272,374 3.75% - 4.5%

Langley 1 $88,721 5.5%

New Westminster 6 $129,374 4.5% - 5.5%

North Vancouver 7 $230,314 3.5% - 4.25%

Surrey 1 $180,451 4.4% (EST)

Tri-Cities 4 $119,849 4.5% - 5.5%

Fraser Valley 3 $94,353 5.25% - 6.25%

TOTAL METRO VANCOUVER 68 $219,438 2.7% - 6.25%

TOTAL VANCOUVER PROPER 33 $289,543 2.7% -4.75%

January 1 – August 22, 2014

*2013 Total Number Of Sales = 88 *2013 Total Sales Value = $556,660,484

NATIONAL APARTMENT GROUP - VANCOUVER CANADA’S LEADING MULTI-RESIDENTIAL REAL ESTATE GROUP

Recent Transaction – Case Studies Project Name: Norgal Apartment Portfolio

Municipality: Downtown Vancouver & North Vancouver

Number of Suites: 195 Suites (combined)

Sale Price: $50,550,000

Price Per Suite: $259,231

Cap Rate: 4.86%

“LARGEST MULTI-FAMILY PORTFOLIO TRANSACTION AT THE TIME OF SALE”

SOLD BY CBRE

Project Name: Courtyard Estates

Address: 2929 & 2959 Tims Street, Abbotsford, BC

Building Size: 108 Suites

Sale Price: $10,300,000

Price Per Suite: $95,373

Cap Rate: 5.53

“THE LARGEST MULTI-FAMILY TRANSACTION IN THE FRASER VALLEY IN 2014 TO-DATE”

SOLD BY CBRE

NATIONAL APARTMENT GROUP - VANCOUVER CANADA’S LEADING MULTI-RESIDENTIAL REAL ESTATE GROUP

Recent Transaction – Case Studies Project Name: Ladrillo Manor

Address: 221 Seventh Street, New Westminster, BC

Number of Suites: 39 Suites

Sale Price: $5,501,465

Price Per Suite: $141,063

Cap Rate: 4.86% SOLD BY CBRE

“RECORD PRICE PER SUITE IN NEW WESTMINSTER IN 2014 TO-DATE”

Project Name: Boardwalk Apartment Potfolio

Municipality: Burnaby, Surrey & Greater Victoria, BC

Number of Properties: 3

Building Size: 633 Suites (combined)

Sale Price: Approximately $140,000,000 (as reported on Boardwalk REIT’s Q1 2014 Quarterly Report, available on their website)

“THE DEAL OF THE DECADE” SOLD BY CBRE

NATIONAL APARTMENT GROUP - VANCOUVER CANADA’S LEADING MULTI-RESIDENTIAL REAL ESTATE GROUP

TOTAL SUITES & SALES VOLUME

PRICE PER SUITE VS. CAP RATE

Price Per Suite Cap Rate

2014 YTD BREAKDOWN

SELECT TRANSACTIONS | 2014

680 ROSELAWN AVENUE

• 64 suites

• Bathurst & Eglinton

• $17,250,000 ($269,531 per suite)

• 3.3% Cap Rate

• Purchaser:

O’Shanter Development Co.

SELECT TRANSACTIONS | 2014

TRIDEL PORTFOLIO

• 200 Suites – Dufferin & Kin

• 204 Suites – Aurora

• 380 Suites - Thornhill

• $151,000,000 ($192,600 per suite)

• 4.93% Cap Rate

• Purchaser: Starlight Investments

325 Willowdale Cres. 58 units $81,034 per suite NOI: $298,543 Cap Rate: 5.95%

880 Colborne Rd. 76 units $59,211 per suite NOI: $211,493 Cap Rate: 6.7%

620 Berkshire Rd. 62 units $65,323 per suite NOI: $274,811 Cap Rate: 5.85%

875 Colborne Rd. 49 units $63,265 per suite NOI: $139,823 Cap Rate: 6.6%

RECENT TRANSACTIONS

SARNIA

100 McFarlane Ave. 105 units $66,667 per suite NOI: $495,967 Cap Rate: 5.99%

50 Merritt Ave. 58 units $51,724 per suite NOI: $168,405 Cap Rate: 6.66%

343 Grand Ave. 76 units $77,632 per suite NOI: $397,783 Cap Rate: 5.9% Condo Title

RECENT TRANSACTIONS

CHATHAM

RECENT TRANSACTIONS

BARRIE

37 Johnson St. 187 units $171,123 per suite NOI: $1,775,202 Cap Rate: 5.2%

PETERBOROUGH

700 Parkhill Rd. W. 128 (Towns) $105,469 per suite NOI: $700,018 Cap Rate: 5.5% Vacancy Issues

Value Add Deals

VALUE ADD STRATEGIES

Despite low cap rate deals, there still exists tremendous opportunity to generate yield and increase capitalized value.

1. RENTAL INCREASE ON TURNOVER • Current Average Rent to Asking Rent • Current Average Rent to Market Rent • Current Average Rent to Potential Market

Rent

2. EFFICIENCY IMPROVEMENTS • Lighting, toilets, showerheads etc. • New boilers, control systems, windows, roof

etc.

3. OTHER REVENUE SOURCES • Card laundry • Parking, Lockers • Cable Revenue Sharing • Cell Tower • Vending Machines

VALUE ADD STRATEGIES

VALUE ADD STRATEGIES

VALUE ADD TRANSACTIONS

EXAMPLE #1 90 COLBORNE STREET 36 UNITS IN BRANTFORD Acquisition Price: $2,200,000 Total Costs (Acquisition and Capital): $3,400,000 Initial NOI: Negative Projected NOI: $305,000 @ 6% Cap Rate: $5,083,333

VALUE ADD TRANSACTIONS

EXAMPLE #2 23 LYNNWOOD DRIVE 55 UNITS IN BRANTFORD Acquisition Price: $1,650,000 Total Costs (Acquisition and Capital): $2,700,000 Initial NOI: $150,000 (Gross Income: $530,000) Projected NOI: $301,725 @ 6% Cap Rate: $5,045,417 (Gross Income: $700,000)

Buyer Strategies

Dealing With Low Cap rates

Project Name: Seaview Towers

Address: 450 Dallas Road, Victoria, BC

Building Size: 73 Suites

Suite Breakdown: 20 Bachelor Suites

30 One Bedroom Suites

15 Two Bedroom Suites

7 Three Bedroom Suites

1 Three Bedroom + Den Penthouse

Income: $691,437

Sale Price: $18,100,000

Price Per Suite: $247,945

Cap Rate: 3.80%

SOLD BY CBRE “ONE OF THE ONLY CONCRETE APARTMENT TOWERS TO SELL IN

VICTORIA IN THE PAST 10 YEARS”

NATIONAL APARTMENT GROUP - VANCOUVER CANADA’S LEADING MULTI-RESIDENTIAL REAL ESTATE GROUP

SELECT TRANSACTIONS | 2014

230 OAK STREET

• 327 suites

• DVP & Dundas Street E.

• $38,000,000 ($116,208 per suite)

• Cap Rate not reported

• Purchaser: Akelius Canada L

SELECT TRANSACTIONS | 2014

220/230 WOOLNER AVENUE

• 2 buildings, 260 suites

• Jane St., north of St. Clai

• $21,850,000 ($84,038 per su

• 5.9% Cap Rate

• Purchaser: Private