Milestones to momentum: Vancouver Island investment firm poised for a strong 2025
3 key real estate projects bring strong returns and sustained growth
This article was recently featured in the Campbell River Mirror.
The team at Alitis Investment Counsel has much to celebrate as we turn the calendar on the new year.
2024 marked a significant milestone for the Alitis Private REIT, a diversified portfolio of alternative investments with a focus on private real estate and a mix of income-producing and development projects. The fund surpassed $100 million in assets under management, reaching $113,969 million as of December 31, 2024.
This achievement, paired with an impressive net return 8.44 per cent (Class E, which is net of all fees and expenses) for the 2024 calendar year, highlights Alitis’ commitment to consistent performance despite a challenging economic landscape.
“Reaching this milestone is a testament to our disciplined approach and the strength of the rental market’s fundamentals,” says Mitchell Prothman, Co-Chief Investment Officer, Senior Portfolio Manager and Head of Real Assets.
Entryway to Mercury Block, located at 12322 102 Avenue NW in Edmonton, Alberta.
The year also saw notable progress on key projects. The Mercury Block (EDGAR Mercury Block LP), a 163-unit mixed-use building in Edmonton’s Oliver District, completed construction in late 2023 and its residential units are now 77 per cent leased. The Alitis Private REIT also made strides in Winnipeg, where it acquired full ownership of the Allure (Ironclad Allure LP), a 155-unit mixed-use development, in conjunction with the Alitis Income & Growth Pool.
The Allure is located at 70 Park E Drive in Winnipeg, Manitoba.
Meanwhile, construction is already 41 per cent complete on The Cobalt (EDGAR Mercury Annex LP), the sister project to the Mercury Block.
“It’s not just about filling units – it’s about creating spaces where people truly want to live,” reflects Ryan Patterson, Senior Real Estate Strategist. “That’s why our focus on amenities like gyms, study rooms, and pet-friendly policies is so important.”
Amid these accomplishments, 2024 also brought its share of challenges. Changing government policy amid high interest rates and increasing construction costs lead to increased project uncertainty. Slowing demand amid an increase in project completions lead to an increase in Canadian rental vacancy rates from 1.5 per cent to 2.2 per cent (as per CMHC’s Fall 2024 Rental Market Report) required a strategic shift. Prioritizing the completion of existing projects over launching new developments, reduced risk while ensuring steady returns for investors.
“The fundamentals of rental buildings remain strong, but caution is key in uncertain times,” Prothman explains. The shift toward purpose-built rentals also aligned with the opportunity to secure favourable CMHC financing, which rewards energy-efficient and affordable housing initiatives.
The Canadian housing market continues to evolve, with demand for rental properties remaining robust as homeownership remains unattainable for many.
“By adding new modern rental units, we’re helping to free up older, more affordable housing stock, which benefits the broader market,” Patterson notes.
The Alitis Private REIT is committed to balancing tenant needs with investor returns, creating homes that foster a sense of community and long-term tenant satisfaction.
Looking ahead to 2025, Alitis anticipates stabilization in vacancy rates, with levels likely settling between 2.5 and 3 per cent. Interest rates are expected to ease further, providing a more stable environment for valuations. The team also plans to enhance its focus on environmental, social and governance initiatives, incorporating more affordable, energy-efficient, and accessible units into its projects.
“We’re not just building properties; we’re building homes that tenants can be proud of,” Patterson says.
While market change is constant, a disciplined approach ensures Alitis remains ahead of the curve. “Our investors can rely on us to deliver steady returns while contributing to solutions for Canada’s housing challenges.”
Find out if the Alitis Approach is right for you, call 250-287-4933 or email info@alitis.ca. Find them in Campbell River at 101-909 Island Highway, the Comox Valley at 103-695 Aspen Road, in Victoria at 1480 Fort Street, or online at alitis.ca.
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:
