Real Estate Investment Nets a 39.3% Return – A Case Study
Centennial Court is an example of how real estate can offer investment opportunities for those looking to diversify their portfolios.
Located at 2840 & 2850 Carlow Road, Victoria, BC
At A Glance
- Number of Units
- 155
- Investment Period
- 25.5 months
- Sale
Date - Oct. 11, 2023
- Sale
Price - $70,500,000
- Internal Rate of Return (IRR)
- 39.3%
- Avg. Rent/Month
- $2300.18
Overview
Langford is one of the fastest growing cities in Canada, having grown from a population of 31,709 in 2012 to 49,345 in 2022.¹
At 1.5%, the vacancy rate of purpose-built rental units remains one of the lowest in Canada.²
Record-breaking rent growth occurred in the Victoria CMA in 2022, with the average rent for purpose-built rental apartments increasing by 7.7%.² We continue to see strong rent growth in 2023.
Centennial Court offers an amenity-rich, pet-friendly community and comprises of two connected six-storey buildings totaling 155 suites.
Project Details
Alitis committed $4,200,000 from the Alitis Income and Growth Pool, Alitis Private REIT and Alitis Private Real Estate LP to the project as a private equity investment. Alitis’ initial investment was made on September 16, 2021. The date of occupancy for the first building was June 30, 2023 quickly followed with occupancy of the second building on August 15, 2023.
“A diversified portfolio is an important part of creating an effective investment strategy and part of our approach involves allocations to private real estate and new multi-family apartment buildings.”
Strategically Managed
In order to maximize risk-adjusted returns through various real estate market cycles, Alitis specifically uses three strategies (income producing, renovation and development) that contribute to solid income and capital appreciation.
Centennial Court is a development example. Alitis invested with a trusted and experienced developer to create a desirable multifamily income producing property. Development risk was reduced by mitigating entitlement (zoning and development permits) timeframes and establishing a fixed price construction contract.
Adding Real Estate Exposure To Your Portfolio
Alitis’ approach to investing in real estate is designed to generate moderate levels of capital appreciation and moderate levels of income over the long-term.
Real estate can offer a tangible, income-generating and wealth building component to a diversified investment portfolio.
Our Team at Alitis
Our dedicated team at Alitis has over 250 years of collective industry experience. But what makes us unique is the high level of integrity that every team member brings to the table.
Along with experience and integrity, each team member at Alitis shares the same commitment to our clients. At the end of the day, we measure our success based on the success of you reaching your financial goals.
If you’re interested in investing with Alitis, let’s have a conversation:
Disclaimers and Disclosures
- “Population Estimates.” Province of British Columbia, 29 Sept. 2023, www2.gov.bc.ca/gov/content/data/statistics/people-population-community/population/population-estimates.
- “Rental Market Report – January 2023 Edition.” CMHC, www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research. Accessed 25 Oct. 2023.
Development return is calculated by multiplying Alitis’ proportionate share of a project by the difference between the current fair market value of the property and the total cost of its development. The property is deemed to be completed once construction has been completed to 98% and the property is 90% leased and/or rented.
Unless otherwise noted, the indicated rates of return are the historical annual compounded returns for the period indicated, including changes in security value and the reinvestment of all distributions and do not take into account income taxes payable by any securityholder that would have reduced returns. The investments are not guaranteed; their values change frequently and past performance may not be repeated.
