My Neighbourhoods, an organization started by non-profit investor Jim Carter, has put its downtown Toronto properties up for sale, the Globe and Mail reports. A consortium of Canadian financial institutions was identified as buyers, and the properties will be valued at $36 million for the group, but they have already walked away, aware that they would take a loss on some of the deals.
The three properties will all have to be prepped and marketed, but we expect most of the deals to close in the next few months. The non-profit project was set up as an investment opportunity, and interest in the projects was immediate. Only 15 percent of the properties have been pre-sold, and so investors could lose money on the deal, since the valuations have already been done.
My Neighbourhoods has been purchasing the properties, improving them and then renting out units. He told the Globe that “every dollar we are putting into these rental units, we’re getting $30 back from the investment.”
There is no reason to not have all My Neighbourhoods’ downtown properties on the market, Mr. Carter told CBC News. “The benefits of selling them will be such that we’ll reinvest the money into other properties in the same area to develop affordable housing with the creation of over 2,500 housing units in less than five years.”