54-60 Shepherd Road, Oakville - FSCO Action Groupopartinvestorsgroup.org/PDFs/OpArt Lofts PowerPoint Presentation.pdf54-60 Shepherd Road, Oakville Loft and Townhouse Development Offering

54-60 Shepherd Road, OakvilleLoft and Townhouse Development Offering

Mortgage Brokerage # 10897

Mortgage Administrator # 11893

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Disclaimer

This Confidential Information Memorandum (the “CIM”) was prepared exclusively for the benefit and use of certain qualifying

investors, and exclusively for the purposes of considering an investment in the OpArt Lofts (the “Investment”). This presentation

is confidential and proprietary to its author, Neilas Inc. (“Neilas”), and may not be disclosed, reproduced, distributed or used for

any other purpose by the direct recipient, or any other recipient, without the express written consent of the author.

Certain statements made in this presentation may be “forward-looking statements” regarding the plans and/or objectives of

Neilas for future operations and anticipated results of operations. For this purpose, any statements contained herein or

incorporated herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting

the foregoing, the words, “believes”, “anticipates”, “proposes”, “plans”, “targets”, “expects”, “intends”, “may” and similar

expressions are intended to identify forward-looking statements. Such statements are based on current expectations that

involve known and unknown risks, uncertainties and other factors, including but not limited to those described herein, that may

cause actual results, performance or achievements of the Investment to be materially different from any future results,

performance or achievements expressed or implied by such forward-looking statements. The Investment’s plans and objectives

are based on assumptions involving the success of the offering described in this presentation and the development of its

business. Although Neilas believes that its assumptions are reasonable, any of the assumptions could prove inaccurate. In light

of the significant uncertainties inherent in the forward-looking statements that may be made herein, the inclusion of such

information should not be regarded as a representation or warranty by Neilas, nor that the objectives and/or plans of the

Investment will be achieved.

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Founded in 2004

Regulated as a Mortgage Broker and Administrator

Fully audited financial statements for the past 10 years with a positive report to FSCO from the

auditor every year – we just received the 2014 audit

Specialize in the financing of real estate properties in the GTA

Managing a Completed Market Value of Approximately $450 million

Focused on the Greater Toronto Area

Over 30 years combined experience in Real estate development, financing, and investing

Delivered returns of 9% to 16% per annum to investors since the company was founded

No principal losses to date, weathered the financial crisis without losing any capital

Welcome to Hi-Rise

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An Investment Bank is a financial institution that assists individuals, corporations, andgovernments in raising capital by underwriting or acting as the client's agent in theissuance of securities and debt instruments (or both)

Additional services include advisory, asset management, and administration ofinvestment

What is Real Estate Investment Banking?

Hi-Rise is a comprehensive real estate focused investment company providing

investment banking, advisory, administration and asset management services

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What We Are Not

Hi-Rise is not a mortgage syndicator

Hi-Rise is a fully integrated real estate investment bank – by investing in our own development projects investors get clarity on where funds are going

Hi-Rise principals invest their own money in every deal

Hi-Rise principals are experienced developers, not salespeople

The Hi-Rise platform is credible

Hi-Rise affiliated brokers and salespeople follow a strict code of ethics

All Hi-Rise mortgage products are secured against the physical property, not against equity

Hi-Rise raises debt financing exclusively from Schedule 1 banks

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We want you and your clients to be part of the Hi-Rise Success story

Tonight’s Presentation

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TRACK RECORD

ALIGNMENT OF INTERESTS

ACCOUNTABILITY& TRANSPARENCY

KNOWLEDGE & EXPERTISE SUCCESS

Our Value to You and Your Clients

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FSCO regulated as Broker and Administrator for 10 years

In full compliance with the Mortgage Brokers, Lenders and Administrators Act (see Appendix)

10 Years of audited financial statements

Over 20 successful transactions (fully exited)

Over $20 million in principal returned to investors

No principal losses

No projects have ever been in foreclosure or court proceedings

Cube Lofts in Little Italy sold out within two hours of offering at a $200 per square foot premium to market

Stage East project in Leslieville is sold out

Track Record

TRACK RECORD




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SUCCESS

Alignment of Interests

TRACK RECORD




Hi-Rise principals have unlimited liability – both their equity in Hi-Rise

AND their personal property is on the line if projects are unsuccessful

Hi-Rise and related companies and their principals currently have

over $10 million dollars invested in its projects

Hi-Rise principals have subordinated their capital to investors (i.e.

investors exit first, then we exit)

Hi-Rise principals personally guarantee all senior debt on the

projects financed

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We are pleased to announce a successful audit for the tenth year in a row

Audit Letter

Audits include, where applicable, assessment of accounting principles used and significant estimates made by management

FSCO Reporting Letter

In full compliance with the Mortgage Brokers, Lenders and Administrators Act (see Appendix)

Audit Checklist

Accountability and Transparency

Your client’s investment is managed by a company that is accountable

TRACK RECORD




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Audit Letter FSCO Compliance Letter


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Audit Checklist


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Senior Management and Directors at Hi-Rise are considered “best in class”

Jim Neilas, Managing Director and Broker of Record

John Neilas, President of SkyPoint Hi-Rise Ltd. (a related construction managementcompany)

Sherif Fadali, Vice President Investments Scott Roberts, Vice President Investments

Peter Neilas, Chief Financial Officer

Noor Al Awqati, Director of Finance and Administration Myles Morin, Director

Barry Polisuk, Director

Tony Greco, Construction Consultant to Neilas Inc.

TRACK RECORD




Knowledge and Expertise

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Hi-Rise Partners are “Best-in-Class”


TRACK RECORD




We are pleased to announce the newest partner in

the Hi-Rise family – GREENWIN INC

In business since 1960, over 65 years

One of Canada’s largest privately owned

residential property management companies

Headquarters in Toronto with over 500 employees

Manages over 1,000,000 SF of commercial space

and 20,000 residential units

Recipients of a “Life Time Achievement Award” in

2011 from the Federation of Rental Housing

Providers of Ontario

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Hi-Rise Partners are “Best-in-Class”


TRACK RECORD




PCL has an annual construction volume of more

than $6 billion, making it one of the largest

contracting organizations in North America

In business since 1906, over 100 years

Over 4,400 employees across the United States,

Canada and Australia

Recipient in 2013 of Fortune Magazine’s 100 Best

Companies to Work For award for the eighth

consecutive year

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Property

Management

ArchitectsDevelopment Legal

Marketing AccountantsPlanning

Best-in-class development partners behind projects


TRACK RECORD




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How Can You Become Part of the Success?

TRACK RECORD




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Increased Costs of Home Ownership

Record Low interest Rates

Insured Mortgage Guidelines have tightened making purchase more difficult

The home ownership rate among Canadians aged 25 – 35 (first-time homebuyers) has fallen

5% in the last two years, from 55% to 50%

Tighter lending guidelines and lower allocation for high rise construction loans making it more

difficult to deliver new condominiums

Despite rising rents, cost of ownership still substantially exceeds the cost of renting, keeping

baby boomers and younger generations from making the move to ownership

Tremendous Population Growth

Toronto is the fastest growing city in North America

Toronto is the fourth largest city and second largest financial centre in North America

Toronto population expected to increase by over two million over the next twenty years

Political Support

Ontario Land Use Policy has made high rise the only viable option for growth

The Perfect Storm

The Perfect Storm has created a once in a generation opportunity for

Purpose Built Rental buildings

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Oakville is an ideal location for purpose built rental

Existing purpose built residential properties available in Oakville are over 40 years old

Oakville has one of the lowest rental unit availability per capita in the GTA (limited supply of

rental units)

Oakville has the highest average rents in Ontario, one of the highest median household

incomes, and low vacancies

Oakville’s Official Plan supports urban intensification within built up areas

Oakville is one of the wealthiest citites in the country

No more development land – High rise construction is the only option for new housing

Considered one of the most desirable communities to live

Single detached homes are considered unaffordable

Feasibility Study for OpArt Lofts completed by one of the top consultants in Ontario for

apartment building assets

The Perfect Storm

“Oakville has some of the most favourable demographics in Canada for high-

quality rental housing, but so far no developers have stepped forward to meet this

demand.” Rock Advisors New Apartment Construction Report 2013

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Big Players Push for New Purpose Built Rental in Toronto

Canary District

Downtown East (Cherry St. and Mill St.)

250 units (affordable housing)

Announced 2012

“Heathview”

Forest Hill

30 Storeys * 2 Towers

600 units

“The first new high-rise rental to

be built in the community [Forest

Hill] in more than 40 years.”

Announced 2013

Yonge and Queen

65 storeys

580 units

Announced 2013

Owns and manages a $24

billion real estate portfolio



Dundee Realty owns and manages a

$7 billion real estate portfolio

Dundee REIT owns and manages a

$13 billion real estate portfolio

Evidence of Market Acceptance

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Oxford Place

600,000 sq. ft. of Residential

Announced 2012

RioCan plans to build 3,000 to 4,000

residential rental units in the next five

years and has three sites under

consideration in Toronto





Evidence of Market Acceptance

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Amenities

OpArt Property Situated in Prime Real Estate

Lakeshore Rd.

QEW/403

Oakville GO Station

Oakville Place (shopping)

Oakville Public Library

OpArt Lofts

Elementary School

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Zoning complete

PCL Construction Company Retained

Greenwin Awarded Asset Management Contract to lease up and

manage the building

Financial Partners currently underwriting construction loan

OpArt Lofts – Final Investment Phase

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Allotted $15,000,000

Available $ 6,500,000

Total Offering $ 21,500,000

Speak to your Hi-Rise investment associate about your company’s allotment for this investment

Offering Summary

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Property Details

Property Address 54 – 60 Shepherd Road

Number of Storeys 10

Zoning Mixed Use Three MV3

Site Area 1.37 Acres

Buildable 202,681 sq. ft.

Rentable 155,454 sq. ft.

Amenity (Indoor) 5,200 sq. ft.

Residential Units 201

Average Unit Size 753 sq. ft.

Parking 271 stalls (two levels)

1 Bedroom 99

1 Bedroom + Den 18

2 Bedroom 68

3 Bedroom 6

Elevators 4

Guest Suite 2

Lockers 201

Modern Class “A” Apartment Rental Modern amenities 24hr concierge

Rents

1 Bedroom $ 1,500 /month



Average rent $ 2.48 PSF

Economics

Revenue $ 4,878,000 /annum

Operating Cost $ 1,372,507 /annum

Operating Income $ 3,505,493 /annum

Costs $68-70 MM

Value $82-85 MM

Profit $13-15 MM

Superior finishes Secure living

Thank you for attending

We look forward to Success together with you and you clients

Documents

54-60 Shepherd Road, Oakville - FSCO Action Groupopartinvestorsgroup.org/PDFs/OpArt Lofts PowerPoint Presentation.pdf54-60 Shepherd Road, Oakville Loft and Townhouse Development Offering