OFFERING MEMORANDUM 982 KINGSTON RD Toronto, ON M4E 1S9 Presented by: Christopher Brown 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 Real Estate Investment Services Canada Inc. ("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 Canada Inc., Brokerage © 2018 Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. 982 KINGSTON RD Toronto, ON ACT ID Z3010010 2 982 KINGSTON RD 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 COMPARABLES 03 Sales Comparables 3 982 KINGSTON RD INVESTMENT OVERVIEW 4 982 KINGSTON RD OFFERING SUMMARY EXECUTIVE SUMMARY UNIT MIX UNIT CURRENT AVG. AVG. MONTHLY POTENTIAL AVG. MONTHLY UNIT TYPE AVG. SF COUNT RENTS RENTS/SF INCOME RENTS RENTS/SF INCOME MAJOR EMPLOYERS 2 2 bedroom 765 $1,525 $1.99 $3,050 $1,750 $2.29 $3,500 SUITE CURRENT MONTHLY PRO FORMA EMPLOYER # OF EMPLOYEES TYPE TOTAL GLA CURRENT RENT RANGE COUNT INCOME MONTHLY INCOME Michael Garron Hospital 2,972 1 Retail 1,200 $4,500 - $4,500 $4,500 $5,000 Providence Healthcare 1,150 East York Bakery 500 Loblaws 500 Oak Leaf Confections Co. 430 Shoppers Drug Mart 425 Tim Hortons 404 G4s Cash Solutions (Canada) Ltd 400 Lilly Analytical Research Lab 400 Go Transit 350 Griffith Foods Limited 312 Bay, The 300 DEMOGRAPHICS 1-KM 3-KM 5-KM 2017 Estimate Pop 20,142 134,260 265,501 5 Year Previous 19,361 129,089 254,584 2017 Estimate HH 8,655 56,830 109,306 5 Year Previous 8,436 55,276 106,454 Median HH Income $97,614 $64,814 $65,479 Per Capita Income $86,689 $54,984 $51,649 Average HH Income $164,538 $106,067 $103,305 #5 982 KINGSTON RD OFFERING SUMMARY INVESTMENT OVERVIEW Excellent mixed-use investment property located in the trendy Upper Beaches community. Two large 2 bedroom units with ground floor retail, all separately metered and fully tenanted. The building's exterior features beautiful historic-like brick facade, complementing the third-storey addition. The wide 20ft frontage along Kingston Rd is nestled between newer mid-rise condo. The Upper Beaches in the midst of a change. With over a dozen new mid-rise condo projects underway, adding hundreds of new units in the area the demographics are shifting. Triple-A retail tenants now line the streets presenting a much better retail experience than the beaches to the south. INVESTMENT HIGHLIGHTS . Third storey addition . Fully tenanted with above market rent for retail tenant . Ground floor retail space includes 400 foot extension (1,200 sf) . Walking distance to newly constructed YMCA . Located in a rapidly developing node 6 982 KINGSTON RD LOCAL MAP 7 982 KINGSTON RD AERIAL OVERVIEW The Southwood Condos Upper Beach Club 104 Units 41 Units Completed Summer 2017 Preconstruction 1316 Kingston Road 507-511 Kingston Rd 53 Units 57 Units Preconstruction Preconstruction The Vince 10 Units - Townhouses Preconstruction The Winthorpe Modern 8 Units - Townhouses Residences at The Hunt Club Completed June 2017 75 Units YMCA Est. Completion 2018 Opening 2019 WestBeach Heartwood the Condominiums Beach 89 Units 43 Units Est. Completion Est. Completion 2018 Legend December 2019 Subject Property Condo/Townhouse Developments YMCA 8 982 KINGSTON RD FLOOR PLANS 9 982 KINGSTON RD FLOOR PLANS PROPOSED ADDITION 10 982 KINGSTON RD PROPERTY PHOTOS Second Floor Kitchen Second Floor Front Balcony View Third Floor Kitchen Third Floor Front Balcony 11 982 KINGSTON RD FINANCIAL ANALYSIS 12 982 KINGSTON RD FINANCIAL ANALYSIS RENT ROLL SUMMARY RENT ROLL DETAIL RENT ROLL SUMMARY 13 982 KINGSTON RD FINANCIAL ANALYSIS OPERATING STATEMENT 14 982 KINGSTON RD FINANCIAL ANALYSIS PRICING DETAIL 15 982 KINGSTON RD MARKET COMPARABLES 16 982 KINGSTON RD SALES COMPARABLES MAP 982 KINGSTON RD (SUBJECT) 1 906 Kingston Road 2 706 Kingston Rd 3 2100 Queen street east 4 2056 Queen street east 5 2006 Queen Street East 6 2008 Queen Street East SALES COMPARABLES 17 PROPERTY982 KINGSTONNAME RD SALES COMPARABLES SALES COMPARABLES SALES COMPS AVG Average Price Per Square Foot $1,000.00 $900.00 $800.00 $700.00 Avg. $645.26 $600.00 $500.00 $400.00 $300.00 $200.00 $100.00 $0.00 982 906 706 2100 Queen 2056 Queen 2006 Queen 2008 Queen Kingston Rd Kingston Kingston Rd street east street east Street East Street East Road 18 PROPERTY982 KINGSTONNAME RD SALESMARKETING COMPARABLES TEAM SALES COMPARABLES 906 KINGSTON ROAD 706 KINGSTON RD 982 KINGSTON RD 906 Kingston Road, Toronto, ONTARIO, M4E 1S5 706 Kingston Rd, Toronto, ON, M4E 2Y9 982 Kingston Rd, Toronto, ON, M4E 1S9 1 2 rentpropertyname1 rentpropertyname1 rentpropertyname1 Tenants Type Offering Price $1,800,000 2 2 bedroom Close Of Escrow 7/31/2017 Close Of Escrow 6/1/2017 Price/SF $659.34 1 Retail Sales Price $1,250,000 Sales Price $1,050,000 CAP Rate 3.59% Price/SF $415.56 Price/SF $776.63 Year Built 1996 Year Built 1908 Total Apartment 2 Units Total Commercial 1 Suites Key Tenants Porch Light rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 NOTES 18 DOM 19 PROPERTY982 KINGSTONNAME RD SALESMARKETING COMPARABLES TEAM SALES COMPARABLES 2100 QUEEN STREET EAST 2056 QUEEN STREET EAST 2006 QUEEN STREET EAST 2100 Queen street east, Toronto, ONTARIO, M4L 1J3 2056 Queen street east, Toronto, ONTARIO, M4L 1J3 2006 Queen Street East, Toronto, ONTARIO, M4L 1J3 3 4 5 rentpropertyname1 rentpropertyname1 rentpropertyname1 Close Of Escrow 4/19/2017 Close Of Escrow 4/18/2016 Close Of Escrow 8/9/2016 Sales Price $1,403,000 Sales Price $2,200,000 Sales Price $2,300,000 Price/SF $564.36 Price/SF $497.40 Price/SF $686.57 Year Built 1904 Year Built 1923 Year Built 1955 rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 20 PROPERTY982 KINGSTONNAME RD SALESMARKETING COMPARABLES TEAM SALES COMPARABLES 2008 QUEEN STREET EAST 2008 Queen Street East, Toronto, ONTARIO, M4L 1J3 6 rentpropertyname1 rentpropertyname1 rentpropertyname1 Close Of Escrow 12/16/2016 Sales Price $1,350,000 Price/SF $931.03 Year Built 1908 rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 21 982 KINGSTON RD MARKET OVERVIEW 22 982 KINGSTON RD MARKET OVERVIEW TORONTO OVERVIEW The Greater Toronto Area (GTA) is home to more than 6.3 million residents and is one of North America’s most populated metropolitan areas. The GTA is composed of the city of Toronto and the surrounding districts of Halton, Durham, York and Peel in the Canadian province of Ontario. The southern border of the metro is formed by Lake Ontario. The city of Toronto itself, with more than 2.8 million people, is Canada’s largest city. As an economic powerhouse with a large manufacturing base, the metro is also a major center for rail and freight distribution. The Canadian National Railway and Canadian Pacific Railway both operate intermodal facilities in the area. The Port of Toronto is the region’s major port and a hub for freight transportation. METRO HIGHLIGHTS FINANCIAL HUB The Royal Bank of Canada, TD Bank, Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce all house their corporate headquarters in Toronto’s Financial District. STRONG EMPLOYMENT GAINS Employers created more than 140,000 jobs in 2017 and an anticipated 150,000 positions to be added during 2018. DIVERSE ECONOMY In addition to a financial center, other major economic sectors include automotive production, healthcare, education and media. 1 982 KINGSTON RD ECONOMY . Gross metropolitan product (GMP) and retail sales progress above national levels.