SCU Presentation Winnipeg Real Estate Forum April 2014
The Property • Existing 56,000 sf 6 floor (incl basement) mixed use property • Location – Downtown Winnipeg Exchange District • Loan Amount - $2.2 million • Loan Purpose - Purchase
SCU Case Study
Challenges • Historical Building designation • 115 year old building • High leverage • High Vacancy • Short term gross leases
Mitigation • Appraisal, Condition Report, Environmental Report • Vendor remains a tenant • Flexible re-development plan • Experienced Purchaser, well known to SCU • A Committed owner with outside income support
Structure and What Makes it All Possible • 70% SCU 1 st mortgage • V-T-B brought leverage to 78% • Acceleration of 20 year am > 15 years based on additional lease-up • DSCR 1:1 increasing as lease income improves • Knowing the member
Tenant Enquiries – see me after the
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