Offering Memorandum

1281 GERRARD ST E , ON M4L 1Y5 1 NON- ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap, Brokerage ("Marcus & Millichap") and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. Used under license by Marcus & Millichap Real Estate Investment Services Inc., Brokerage © 2018 Marcus & Millichap. All rights reserved.

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1281 GERRARD ST E Toronto, ON ACT ID Z3010376

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo

FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Rent Roll Summary Commercial Operating Statement Notes Pricing Detail Acquisition Financing

MARKET OVERVIEW 03 Market Analysis Demographic Analysis

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INVESTMENT OVERVIEW

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OFFERING SUMMARY EXECUTIVE SUMMARY

VITAL DATA CURRENT PRO FORMA Price $1,125,000 CAP Rate 2.8% 5.28% Net Operating Loan Amount $562,500 $31,513 $59,437 Income Net Cash Flow Loan Type Proposed New -1.04% / ($5,847) 3.92% / $22,077 After Debt Service Interest Rate / Amortization 4.5% / 25 Years Total Return 1.20% / $6,735 6.26% / $35,232 Total Rentable SF 2,250 Price/SF $500.00

UNIT MIX

UNIT CURRENT AVG. AVG. MONTHLY POTENTIAL AVG. MONTHLY UNIT TYPE AVG. SF COUNT RENTS RENTS/SF INCOME RENTS RENTS/SF INCOME 3 Apartment $792 $1.73 $2,375 $1,350 $2.95 $4,050 SUITE CURRENT MONTHLY PRO FORMA TYPE TOTAL GLA CURRENT RENT RANGE COUNT INCOME MONTHLY INCOME

1 Retail 875 $1,900 - $1,900 $1,900 $2,552

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OFFERING SUMMARY INVESTMENT OVERVIEW

1281 Gerrard St E is an excellent opportunity to own an income generating mixed use property in Toronto (Bricktown), along a rapidly evolving Gerrard St E. The property has tremendous future upside and is great fit for your own business, or as an investment property. 1281 Gerrard St E will be a short walk to the Gerrard and Carlaw SmartTrack Station (Scheduled Opening 2024)

The 3 storey, 2250 SF property consists of 875 SF of commercial space at grade and 1375 SF of 2nd and 3rd floor apartment space.There are three apartments units, one 2 bedroom apartment, one 1 bedroom + den apartment, and one studio apartment.1281 Gerrard has a stabilized CAP rate of 5.28%

The property has 17ft of Frontage on the south side of Gerrard and is 110ft deep with 2 parking spots in the rear. 1281 Gerrard St E is zoned CR 2.0 (c1.0,r2.0) and designated Mixed-Use in the Official Plan. The property has wonderful greenspace of Greenwood Park directly south and great access to Lakeshore Ave / and the .

Steps To TTC, minutes to the Beach, the Danforth, Little India, East Chinatown and communities as well as the bustling Jones and Gerrard Strip, the property is poised to benefit from the surging growth along Gerrard St E.

INVESTMENT HIGHLIGHTS

. Income Generating 3 Storey, 2250 SF Mixed Use Building . Ground Floor Commercial Space at Grade Plus Three 2nd and 3rd Floor Apartments

. Long Term Commercial Tenant With less than 2 Years Left On Lease. . 5.28% Stabilized Cap Rate

. Short Walk To Future Gerrard And Carlaw SmartTrack Station (Open 2024) . Great Access to Gardner Expressway, Lakeshore Blvd and DVP

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OFFERING SUMMARY PROPERTY SUMMARY

THE OFFERING EXISTING FINANCING Price $1,125,000 Loan Type None Property Address 1281 Gerrard St E, toronto, , CA Assessors Parcel Number 21044006 Zoning CR 2.0 (c1.0,r2.0) SITE DESCRIPTION Number of Units 4 Number of Stories 3 Total Rentable Square Feet 2250 Lot Size 0.04 acre(s) Parking 2 Spots In Rear PROPOSED FINANCING First Trust Deed Loan Amount $562,500 Loan Type Proposed New Interest Rate 4.5% Amortization 25 Years Loan Term 5 Years Loan to Value 50% Debt Coverage Ratio .84

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8 DEMOGRAPHICS

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REGIONAL MAP

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LOCAL MAP

1281 East

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AERIAL PHOTO 110.00 FT 110.00

17.09 FT

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12 PROPERTY PHOTOS

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FINANCIAL ANALYSIS

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FINANCIAL ANALYSIS RENT ROLL SUMMARY

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FINANCIAL ANALYSIS OPERATING STATEMENT

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FINANCIAL ANALYSIS NOTES

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FINANCIAL ANALYSIS PRICING DETAIL

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MARKET OVERVIEW

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MARKETINGDEMOGRAPHICS TEAM Created on March 2019

POPULATION 1 KM 3 KM 5 KM HOUSEHOLDS BY INCOME 1 KM 3 KM 5 KM . 5 Year Projection . 2017 Estimate Total Population 28,200 180,094 460,892 $150,000 or More 17.03% 20.17% 16.91% . 2017 Estimate $100,000 - $149,999 17.27% 16.04% 13.42% Total Population 27,649 174,166 436,997 $80,000 - $99,999 10.05% 8.97% 9.24% . 5 Year Previous $50,000 - $79,999 17.34% 16.36% 17.65% Total Population 26,899 166,076 405,639 $40,000 - $49,999 7.86% 7.73% 8.71% HOUSEHOLDS 1 KM 3 KM 5 KM $30,000 - $39,999 8.03% 8.19% 9.21% . 5 Year Projection $20,000 - $29,999 8.62% 8.71% 9.76% Total Households 11,809 79,138 215,799 Under $20,000 13.82% 13.82% 15.09% . 2017 Estimate Average Household Income $105,607 $113,641 $110,083 Total Households 11,620 76,492 204,469 Median Household Income $70,158 $70,558 $59,701 . 5 Year Previous Per Capita Income $44,383 $49,910 $51,508 Total Households 11,452 73,883 192,845 POPULATION PROFILE 1 KM 3 KM 5 KM Average (Mean) Household Size 2.40 2.30 2.10 . Population by Age Growth 2015-2020 1.63% 3.46% 5.54% 2017 Total Population 27,649 174,166 436,997 . Households by Education Level 0 to 4 Years 7.17% 6.30% 5.60% High School Graduate (12) 21.34% 19.63% 19.60% 5 to 14 Years 8.83% 9.09% 8.43% Associate Degree Only 4.12% 4.24% 4.52% 15 to 19 Years 3.69% 4.13% 4.20% Bachelors Degree 22.20% 26.06% 26.75% 20 to 24 Years 5.06% 5.18% 6.90% No Schooling Complete 22.33% 17.39% 14.33% 25 to 34 Years 16.33% 15.52% 18.63% HOUSING UNITS 1 KM 3 KM 5 KM 35 to 44 Years 20.22% 18.85% 17.08% . Occupied Units 45 to 54 Years 14.69% 15.20% 14.16% Owner Occupied 61.28% 58.09% 46.23% 55 to 64 Years 11.87% 12.79% 12.03% Renter Occupied 38.72% 41.91% 53.77% 65 to 74 Years 6.85% 7.69% 7.51% 75 to 84 Years 4.04% 3.87% 3.83% Age 85+ 1.25% 1.41% 1.62% Median Age 39.00 39.90 38.40 . Population by Gender 2017 Estimate Total Population 27,649 174,166 436,997 Male Population 49.66% 49.51% 50.33% Female Population 50.34% 50.49% 49.67%

Source: © 2018 Experian

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MARKETINGDEMOGRAPHICS TEAM

Population Race and Ethnicity In 2018, the population in your selected geography was 27,649. The The 2018 population by visible minority status of your selected area is population has changed by 2.79 percent since 2010. It is estimated as follows: 32.13% Asian, 6.34% Black, 1.26% Latin American, that the population in your area will be 28,200 in 2020, which 0.31% Arab, 3.92% multi or other and 56.34% not visible. Compare represents a change of 1.99 percent from 2018. The current these to Canada averages which are: 15.49% Asian, 3.16% Black, population is 49.75 percent male and 50.25 percent female. The 1.36% Latin American, 1.36% Arab, 1.00% multi or other and 79.01% median age of the population in your area is 39.00, compare this to not visible. the Canada average, which is 40.90. The population density in your area is 27,649.00 people per square kilometer.

Households Housing There are currently 11,620 households in your selected geography. In 2018, there were 6,973 owner-occupied and 4,479 renter-occupied The number of households has changed by 1.47 percent since 2010. dwellings in your area. In 2013, this changed to 7,121 owner- It is estimated that the number of households in your area will be occupied and 4,499 renter-occupied dwellings in your area. It is 11,809 in 2020, which represents a change of 1.63 percent from estimated that in 2020, there will be 7,292 owner-occupied and 4,517 2018. The average household size in your area is 2.40 persons. renter-occupied dwellings in your area.

Income Employment In 2018, the median household income for your selected geography is In 2018, there were employees in your selected area, this is also $70,158, compare this to the Canada average which is currently known as the daytime population. $72,938. The median household income for your area has changed by 15 percent since 2010. It is estimated that the median household income in your area will be $78,033 in 2020, which represents a change of 11.23 percent from 2018. The 2018 per capita income in your area is $105,607, compare this to the Canada average, which is $96,065. The 2018 average household income in your area is $105,607, compare this to the Canada average, which is $96,065.

Source: © 2018 Experian

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