Client Objective:

A condominium corporation in Barrie, Ontario sought to fund a large-scale renovation and modernization program for a 131-suite waterfront property originally completed between 2006 and 2009. The goal was to restore structural integrity, upgrade mechanical systems, and enhance amenities to extend the building’s lifespan, improve energy efficiency, and increase long-term property value for residents and investors.

Key Considerations:

• Capital Requirement: $10.5MM CAD to fund a comprehensive, 10-month renovation program.
• The project required a blend of equity and subordinated debt, providing investors with both yield and participation in upside value creation.
• Timing was critical, aligning with favorable post-rate-stabilization market conditions and construction scheduling.
• Use of proceeds covered structural (30%), mechanical/HVAC (25%), and amenity upgrades (20%), among other categories.
• Secure Capital led the raise and coordinated with multiple stakeholders — including developers, legal advisors, and property managers — to ensure transparency and operational continuity during renovations.

Financing Structure:

• Total Facility: $10,500,000 CAD
• Instruments: 70% Preferred Equity (8% annual dividend) + 30% Subordinated Debt (6%, 5-year term)
• Investor Composition: 60% institutional investors, 30% high-net-worth individuals, 10% family offices.
• Structure Design: Targeted capital stack blended stable fixed-income yield with equity upside potential, achieving balance between investor protection and sponsor flexibility.
• Execution: Secure Capital executed a broad syndication strategy, combining private placement with digital outreach, completing the raise within 45 days.

Results:

• $10.5MM capitalized in November 2023, fully funding the renovation program with no delays or budget overruns.
• Enabled completion of major upgrades across structure, HVAC, façade, and amenities by September 2024, increasing energy efficiency and property value.
• Achieved 25% valuation uplift, 10% occupancy increase, and 15% investor IRR (1.8x equity multiple).
• Established a proven framework for value-add condominium recapitalizations, enhancing Secure Capital’s track record in real estate transition financing.
• The Waterview project set a precedent for scalable future mandates in residential repositioning and mid-market asset revitalization.