The Cranson Capital Purpose-Built Rental Fund is partnered with experienced purpose-built rental (PBR) developers to offer accredited investors an opportunity to invest in a portfolio of PBR projects across Southern Ontario to hold for cash flow and long-term capital appreciation. Watch the introduction video here.
Purpose-Built Rental Fund
What is Purpose-Built Rental?
PBR developments are residential apartment buildings constructed solely for the purpose of renting the units out. They differ from condos as they are built by developers specializing in PBR with one landlord for the entire building. They feature durable, sustainable design, optimized for tenant living and offering professional management services. The fund is focused on mid-rise projects, under 200,000 square feet for time and cost efficiencies.
Why Invest in PBR Now?
PBR is being incentivized at all levels of government, including an HST exemption for new PBR development; eliminated minimum parking requirements; development charges deferral; rent control exemption for new builds after Nov 2018 and a new 15% reduction in City of Toronto property taxes for new multi-residential builds. CMHC will finance up to 95% of total project costs. The lower required equity capital investment enhances potential project returns.
Continued Demand for Housing
Ontario residents are expected to increase by 2.5M over the next 10 years. The current slowdown in housing starts will not keep up with long-term demand for new housing. This will create a significant housing supply gap in 3-5 years. Purpose-built rental projects can fill this gap.
RRSP & TFSA Eligible
Accredited investors can invest in the Cranson Capital Real Estate Development Fund using their RRSP and TFSA accounts to earn returns over the long-term in a tax efficient manner.
$30 Million
Target Raise
Fund Leadership and Advisory Board
Devon Cranson, CPA, CMA
Founder & President, Cranson Capital
Anthony Heller
President & CEO, Plazacorp
Marlon Bray
EVP Clark Construction
Josh Kaufman
Co-Founder and Principal InnoDev Partners
Shlomo Marder
CFO, Nortown Electric;
President, Marder Foundation
Oren Turkieni
Principal and Vice President Acquisitions
Pinemount Developments
What you can expect from us
Investment Philosophy: To become equity partners with experienced developers, capitalizing on their ability to generate profits. The Fund intends to maximize returns while mitigating downside risk for investors by diversifying across a portfolio of projects.
Diversification: The Fund will invest in development of new residential real estate mainly in Southern Ontario. Investments are expected be diversified by property type including high-rise, mid-rise, low-rise and rezoning opportunities with a variety of developers.
Deal Structuring: The Fund, through the Limited Partnership, will structure investments to prioritize return of capital and priority hurdles for the Fund. The Fund may invest as debt or equity targeting project IRRs of 18% or higher.
What we look for
Deal Sourcing: The Fund will utilize existing relationships and deal flow from developers along with our network of industry contacts.
Due Diligence: The Fund will conduct thorough due diligence to determine the suitability and structure of investments.
Investment Approvals: The Fund will require approval from its Advisory Board before committing to any investment.
Project Oversight: Developers will provide the Fund project status reports, bank statements, quarterly financial statements and sales activity reports. Development projects will be governed by a Development Management Agreement (DMA). The DMA will outline the responsibilities of the Developer and include approval rights and certain protections in favour of the Fund.