Investment Opportunity
I wanted to take a moment to introduce you to a group that The Politis Brienza Team have been working with for the past several years on the real estate development front- Marchant Securities Inc. and Greybrook Capital. We have partnered with Greybrook for the past several years both personally investing our own capital as well as introducing our investment clients to these opportunities. We have been extremely successful both personally and professionally to date, in addition, our partnership with Greybrook has allowed us to provide our clients with tremendous value add services and investment opportunities not available anywhere else. Please take a moment and read the information below as I feel it would be of great interest to you.
Marchant Securities Inc. (MSI), a registrant of the Ontario Securities Commission (OSC) since 1975, is pleased to announce an ongoing joint venture partnership with Murray and Gary Goldman of Stafford Homes (www.staffordhomes.ca), part of the Goldman Group of companies, one of Toronto’s most successful residential developers for more than 50 years. In partnership with Greybrook Capital, MSI provides investment vehicles that allow individual investors the opportunity to participate in the value creation activities of Stafford Homes. Investments of this type are typically referred to as Real Estate Merchant banking and are dominated by financial institutions and pension funds. Individuals are usually excluded from these types of investments due to the amount of capital required to qualify for such an investment.
Marchant Securities Inc. is now offering individuals the unique opportunity to invest directly with a best in class residential developer on a 52 unit freehold townhomes development located in the Victoria Village area of Toronto adjacent to Eglinton and Victoria Park.
The Investment:
· The Greybrook Keystone Limited Partnership will joint venture with Stafford Homes in their ongoing development of a 52 unit townhome project comprised of 10 semi-detached and 42 free-hold townhomes located at 25 & 27 Hobson St.
- The development lands are fully zoned for this purpose
- Term of the investment is estimated to be 24 months
- Investors will receive a 9% preferred return on capital, payment of which will be deferred until the project is completed
- Pro forma projections anticipate a potential annualized return of 22%
- Stafford will conduct the pre-sale program, all construction related duties and provide all guarantees required by construction lender(s)
- Investor liability is limited to the amount of the investment
- Investor equity will sit in priority position
- Minimum Investment $150,000
- Total investment: $2,079,000
In 2006, Stafford Homes identified two parcels of land on Hobson Street which, while at the time were zoned industrial, were prime for residential redevelopment. Stafford purchased these two parcels measuring 2.91 acres and for the last three years has been committed to taking them through the costly and timely municipal zoning process. Stafford is currently finishing the construction of the sales center located on 1400 O’Connor Dr., which is projected to be up and running by July 30th 2010. With required zoning now in effect, we are pleased to introduce to you this joint venture investment with Stafford Homes. Stafford Homes will be responsible for the performance of all aspects of the development process including but not limited to the pre-sale program, construction financing, construction, unit closings and construction loan discharge.
Marchant Securities is offering real estate professionals like yourselves the opportunity to bring unique, high quality real estate opportunities to your investors- helping you differentiate yourself from the competition. MSI will pay a referral fee of 6% of the total investment directly to referring brokers. We would be happy to sit and discuss the details of the opportunity with yourselves or any interested parties at your convenience.
Marchant Securities Inc:
· With over four decades of experience, the principals of Marchant Securities Inc. have enabled Private Investors to participate in transactions identical to those that have typically been dominated by Institutional Investors
- We have developed expertise in real estate investments that range from equity investments in commercial and residential real estate and development to mezzanine financing and bridge lending
- The group has been involved in the creation, development, construction, management and syndication of over 36 projects totaling over 7,000 residential units. Approximately $450 million in equity has been deployed creating an aggregate value of approximately $1.15 billion at the respective project completion dates