Key Takeaways
- • Equiton's Residential Income Fund completed a $21-million purchase of a 64-unit apartment building at 65 Times Ave. in Markham, Ont., from KingSett Capital in March 2019, its first property in the city and the 12th for the fund.
- • Equiton CEO Jason Roque says the acquisition was made below market value and that the building can gain value through operational changes rather than capital improvements.
- • The Burlington, Ont.-based firm says its management team has overseen more than $10 billion in real estate acquisitions and management, developed more than 100 million square feet, and managed more than 10,000 apartments in Canada and the United States.
- • The Residential Income Fund, a private REIT launched in March 2016 with a $10,000 minimum investment, holds properties in Brantford, Kingston, Chatham and Stratford, Ont.
Summary
Equiton, a Burlington, Ont.-based private equity real estate firm, has steadily expanded its holdings since its founding roughly five years ago, according to RENX. Its Residential Income Fund most recently completed the $21-million purchase of a 64-unit apartment building at 65 Times Ave. in Markham from KingSett Capital in March. The transaction was brokered by SVN Rock Advisors Inc. The property is the fund's 12th and the firm's first in the suburban city north of Toronto. Chief executive Jason Roque told RENX the building offers significant upside potential and fits the firm's strategy of acquiring properties with unrealized value.
The building sits just off Highway 7, near Highways 407 and 404 and a GO Transit station with access to downtown Toronto. Roque said Equiton acquired the property below market and expects to increase its value through operational changes that do not require capital improvement spending.
The Residential Income Fund, launched in March 2016, is a private REIT focused on residential income properties, including apartments and student housing in Canada. It requires a minimum initial investment of $10,000. Its existing portfolio includes four properties in Brantford, three in Kingston and two each in Chatham and Stratford, Ont. The fund uses Equiton's proprietary PropertyTrak acquisition system and due diligence process to find properties priced below intrinsic value, then actively manages them. Roque cited population growth, high home ownership costs, limited developable land, rising construction costs and legislative barriers as factors creating demand that outpaces apartment supply.
Equiton's management team, which includes chief financial officer Helen Hurlbut, chief operating officer Clifford Fraser and chief investment officer Greg Placidi, has more than 100 years of combined experience, according to Roque. Roque previously spent seven years as CEO of a private real estate company and five years with Landmart Homes in Burlington. Equiton also invests its own capital alongside clients.
The firm's Balanced Real Estate Fund, a private REIT launched in May 2016 with a $5,000 minimum, invests across income properties, development and construction projects, and lending and financing in North America. Equiton also launched an equity financing product for residential and commercial developers across Canada in April 2016, generally preferring projects with zoning, site plan approvals or pre-leasing in place.
The building sits just off Highway 7, near Highways 407 and 404 and a GO Transit station with access to downtown Toronto. Roque said Equiton acquired the property below market and expects to increase its value through operational changes that do not require capital improvement spending.
The Residential Income Fund, launched in March 2016, is a private REIT focused on residential income properties, including apartments and student housing in Canada. It requires a minimum initial investment of $10,000. Its existing portfolio includes four properties in Brantford, three in Kingston and two each in Chatham and Stratford, Ont. The fund uses Equiton's proprietary PropertyTrak acquisition system and due diligence process to find properties priced below intrinsic value, then actively manages them. Roque cited population growth, high home ownership costs, limited developable land, rising construction costs and legislative barriers as factors creating demand that outpaces apartment supply.
Equiton's management team, which includes chief financial officer Helen Hurlbut, chief operating officer Clifford Fraser and chief investment officer Greg Placidi, has more than 100 years of combined experience, according to Roque. Roque previously spent seven years as CEO of a private real estate company and five years with Landmart Homes in Burlington. Equiton also invests its own capital alongside clients.
The firm's Balanced Real Estate Fund, a private REIT launched in May 2016 with a $5,000 minimum, invests across income properties, development and construction projects, and lending and financing in North America. Equiton also launched an equity financing product for residential and commercial developers across Canada in April 2016, generally preferring projects with zoning, site plan approvals or pre-leasing in place.
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