hamilton - 200 charlton avenue east is

The ApartmentGroup

contacts:

Mitchell Chang*President & Owner

D: [email protected]

Lorenzo Digianfelice, AACIBroker of Record & Owner


Commercial Focus Realty Inc., Brokerage35 The Links Road, Suite 202, Toronto, ONM2P 1T7T: 416-972-9220F: 416-972-9588

www.cfrealty.ca*Salesperson

200 Charlton Avenue EastHamilton, ON

Copy right Commercial Focus Realty Inc., Brokerage. The information contained herein (the “information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot beguaranteed and has not been verified by either Commercial Focus Realty Inc., Brokerage (CFR) or any of its affiliates (CFR and it’s affiliates are collectively referred to herein as “CFR”). CFR neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy,correctness, completeness, or suitability of, or decisions based upon or in connection with , the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect0 to using the Information. The information may change and property described herein may bewithdrawn from the market at any time without notice or obligation of any kind on the part of CFR. The Information is protected by copyright and shall be fully enforced.

EXCLUSIVE OFFERING

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WHY HAMILTON200 Charlton Avenue East

Hamilton, ON


Hamilton, with a population of over 500,000 is one ofCanada’s major cities and is one of Ontario’s mosteconomically diverse. It’s major economic sectors include:advanced manufacturing, agriculture/food processing,creative industries, clean-technology, life sciences andtransportation/goods movement.

In 2011, the Real Estate Investment Network of Canadaranked Hamilton the best place to invest over the next fiveyears and the third top location in Canada. Hamilton hasalso been ranked in the top five of best places to invest inCanada by US based Site Selection Magazine and in 2009,FDI Magazine (a publication of the world-famous FinancialTimes) ranked Hamilton as the third top large city in NorthAmerica for quality of life.

With an educated workforce, stunning natural amenitiesand a diverse, resilient economy, Hamilton is a primechoice for future economic opportunity.

Hamilton's population increased by 14,280, or 2.91% from 2001 to 2006, representing a decrease over the 4.8% growth rate from1996 to 2001 and somewhat lower in comparison to the Ontario’s growth rate of 6.6%, which also exceeded the 5.4% Canada’snational average. Hamilton has the eighth largest population of all Canadian cities and remains the fourth largest of all Ontariocities, preceded by Toronto, Ottawa and Mississauga.

According to the 2006 Census, Italian is spoken by 32,120 Hamilton residents (the most of any non-official language in responseto language spoken most often at home for both the single and multiple responses combined), followed by Polish, Portuguese andSpanish.

According to the 2006 Census, just over 1/4 of Hamilton's population are immigrants, slightly higher than the 24.7% in 2001 and13.6% of the population are visible minorities an increase of 15,410 from 2001 to 2006.

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WHY HAMILTON200 Charlton Avenue East

Hamilton, ON


Hamilton's employed labour force increased by 5.6%, while the unemployed labour force increased 6.7% between 2001 and 2006compared to the previous census cycle when the employed labour force increased by 10%, while the unemployed labour forcedecreased by 24% between 1996 and 2001. Both the communities of Glanbrook and Ancaster showed a significant percentagepopulation change for a combined increase in total population of some 8,895 individuals. Generally, all communities contributed to thegrowth of the City with the exception of the community of Hamilton showing a slight decline in its overall population but remainingconsistent at 329,820.

TOP REASONS TO INVESTI N HAMILTON

1. Hamilton is located in the centre of the most densely populated corridor of economic activity in Canada (Hamilton is Canada’s 9thlargest regional economy in Canada with a GDP per capita of approximately $48,000 (2006, CAD) and is the 5th largest “Mega-Region” in North America (Martin Prosperity Group, Hamilton Benchmarking).

2. Within an 30 minute commute, Hamilton has easy access to a highly skilled, well educated and productive labour force of over 1million people.

3. In 2009, Foreign Direct Investment (fDi) named Hamilton the 3rd best large city in North America for its Quality of Life.4. 60% of its land area is designated rural. Hamilton’s Agricultural sector generates $1.26 billion a year for the local economy; is

boosted by ecologically rich farming lands, has immediate proximity to water, has a temperature climate, solid transportationnetworks and quick access to national and international markets.

5. Uniquely positioned as a Transportation Hub for the Goods Movement Industry – Home to the Port of Hamilton (the busiest ofall the Great Lakes ports), John C. Munro International Airport (Canada’s largest courier and cargo airport generating more cargoflights than any other airport in Canada), proximity to rail lines and easy access to major 400 Series of Highways, Hamilton haslong been cited as a key gateway for Goods Movement through southern Ontario.

6. Incentive Programs include: Hamilton’s National Award winning Environmental Remediation and Site Enhancement ProgramPlan (ERASE), designed to “erase” brown fields by providing financial incentives to clean them up; Downtown development/re-development programs; labour force and training; along with R&D Tax credits and other Government programs.

7. Mohawk College is the largest trainer of apprentices in Ontario – annually serves 10, 000 full-time, 3,000 apprenticeship,and 300 international students, as well as 5,000 adult learners and 42,000 continuing education registrants.

8. Hamilton Health Sciences employs nearly 10,000 people and is comprised of six unique hospitals and a cancer centre – wasrecently selected by GE Healthcare to be the first site in the world to receive new prototype technologies for use in a molecularbreast imaging research program.

9. McMaster University consistently ranks as one of Canada’s top 3 most research-intensive (number of research dollars perfaculty member) universities and home to Canada’s first human embryonic stem cell library. The Research holds promise to treatcatastrophic illnesses that range from cancer to Parkinson’s to spinal cord regeneration.

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LOCATION200 Charlton Avenue East

Hamilton, ON

The property is located in the south end of the City of Hamilton inan area knows as “Corktown”. More specifically the property islocated on the south side of Charlton Avenue East, east ofFerguson Avenue South, west of Vicotoria Avenue South and northof the Jolley Cut/Claremont Mountain access.

The area is predominately residential in character and is roughtly100% built up. Surrounding the property is low to medium densityresidential development with some high rise apartment buildings inthe vicinity as well. The property backs onto a City ownedpumping station and the Escarpment.


The property has good access to other parts of the City viaCharlton Avenue, James Street South and Main Street.Charlton Avenue is a 2 lane paved and lighted road travellingin an east west direction both ways.

The property is in close proximity to public transit, schools,parks, places of worship, shopping, etc. The property isabout a 5 minute drive to downtown Hamilton. GO transit isthree blocks away.

This is a high demand upper tier residential rental area.

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Hamilton, ON


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Hamilton, ON


2006 Statistics Census Tract Level

• Population of 4,965 person which is up by 2.3% since 2001

• Population density of 5,386 persons per sq. km. as opposed to 505 person for the total City

• 51% of the population are between the ages of 20 and 45

• 51% of the population 15 years old plus are single never married

• 89.3% of the dwellings in the area are apartments over 5 stories in height

• 84% of the dwellings in the area are rental

• Median family income 2005 was $38,873

• Average monthly rental rate in the are was $696 in 2006

• 38% of the population classify themselves as immigrants

• 28.4% of the population has a high school degree and 24% have a University degree

• 29% of the population is employed in either manufacturing or health care

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SITE200 Charlton Avenue East

Hamilton, ON


Site DetailsArea: 0.20 acres

Frontage: 102.00 feet

Depth: 78.00

Legal Description: Lot 6, Registrants Compiled Plan 1497

S/T CD140380, CD181061,VM17276, AB383455, VM117246,City of Hamilton, Region of Hamilton Wentworth, Province of Ontario

Pin No.: 171160051

Services: Full municipal services.

Topography: Slopes downwards from south to northat a strong grade along withsurrounding sites.

Zoning: “E” – Multiple Dwellings Zone

Owner: 1337046 Alberta Ltd.

Roll No.: 02019101550

CVA: $839,250 (2011)

Taxes: $30,643.04 (2011)

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BUILDING DETAILS200 Charlton Avenue East

Hamilton, ON

Age: Circa 1970’s

Height: 6 storeys above grade

Suite Mix: Bachelor - 1One bedroom - 16Two bedroom – 4

Construction: Concrete construction with load bearing walls

Roof: Part flat tar and gravel, part torch on modifiedbituminous. Torched portions replaced in2007. North facing rood replaced in 1995.Penthouse roof replaced in 1990. South roofreplaced in 2000.

Exterior: Brick

Windows: Double glazed in metal frames

HVAC: Gas fired hot water – Raypack boiler replacedin 2004 with 627,000 BTU rating.

DomesticHot Water: Universal Rheem gas fired boiler/tank replaced

in 2005.

Electrical: Three phase systemSeparate meters – fuse box/suite 100 amp.400 amp main panel in basementBattery back up

Parking: surface spaces and underground

Laundry: 2 washers and 2 dryers in the basementElectric and on contract with Phelps$2.00 per cycle for dry / $1.75 for a wash


Elevator: One9 person 680 kgUpgraded in 2010 $80,000

Stairwells: Two sets in the building

Hallways: Broadloom flooringCeramic tile wainscottingPainted plaster walls and ceilingsUpdated 2007

Entrance: Entry phone systemMail boxes and fire panel

Balconies: Front and rear of the buildingPoured concrete pad metal facing

Fire: Mircom fire panel, exit signs,extinguishers, etc. Fire Code RetrofitLetter dated December 14th, 2006. FireInspection Certificate dated December2010 available.

Garbage: City pickup. Recycle program

Environmental: Reported available 2010.

Structural: Report available 2010.

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BUILDING DETAILS200 Charlton Avenue East

Hamilton, ON

Suite Finishes:Suites are of modest size and include paintedgypsum walls and ceilings. Flooring includesceramic tile in kitchens and bathrooms andbroadloom or laminate in the balance. Kitchens aregalley style but feed into a small dining area thathas ceramic tile flooring.

Kitchens include two appliances and double sectionstainless steel sinks. Most of the appliances in thebuilding are less than 5 years old. All fridges arefrost free. There are arborite countertops andpainted wood cupboards and cabinets.

Each suite has a four piece bathroom, linen closetand electrical panel (100 am fuses). Bathroomshave gravity air vent and ceramic tile subsurrounds.

In the past year a number of suites have beenupdated. These upgrades include: ceramic tilebacksplash in kitchens, new countertops, newelectrical face plates and light fixtures; painting; andnew laminate flooring.


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PHOTOS200 Charlton Avenue East

Hamilton, ON


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FINANCIAL PROJECTIONS200 Charlton Avenue East

Hamilton, ON

For the year ending December 31/11

Per Suite/Per month Annual

Revenues

Rental Income (Oct. ‘11 x 12) $691 $174,180

Laundry Income (est.) 15 3,780

Vacancy Bad Debt (2%) ( 7) (1,780)

Net Revenue $699 $176,180

Expenses

Realty Taxes (Actual 2011) 1,469/suite $30,645

Insurance (2010-2011 Actual) 137/suite 2,870

Utilities 1,185/suite 24,885

R+M 600/suite 12,600

Management (3.5% +HST) 332/suite 6,968

Wages + Benefits 171/suite 3,600

Total Expenses: $3,854/suite $81,568

Net Income: $4,505/suite $94,612


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INVESTMENT SUMMARY200 Charlton Avenue East

Hamilton, ON


Asking Price: $1,465,000

Cap Rate: 6.5%

Price Per Suite: $69,760

Return On InvestmentDown Payment $366,250 (25%)

CMHC Rate 2.5%

1st Mortgage $1,098,750 (75%)

Annual Debt Service $59,064

NOI $94,960

Cash Flow $35,546

Plus Pay down $32,102

Total Return $67,648

ROI 18.5%

hamilton - 200 charlton avenue east is

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brokerage cfr

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commercial focus realty

president ownerd

aacibroker of record

mitchell chang

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