TORONTO, February 26, 2019 – Plaza Partners – Cactus Estates Limited Partnership announced that it has completed an $8.65 million capital raise led by Cranson Capital Securities Inc. The Partnership used the proceeds to acquire a 60-unit townhouse rental complex on a 3.5 acre site in North Toronto at the southwest corner of Steeles and Cactus Avenues.
The site is located in a mature neighborhood at the northern edge of Toronto across the street from the City of Vaughan. The townhomes are currently fully occupied with an opportunity to increase rents through turnover. Plaza Partners believes that the site is currently under-utilized and has potential to obtain increased density for future development. They plan to hold the asset over the next 3 – 5 years during which time the value is expected to rise significantly.
“With the GTA’s housing supply issues, there is significant upside potential for investors who purchase under-utilized land as a buy and hold investment” said Devon Cranson, President and founder of Cranson Capital Securities Inc. “This investment is targeting a total return of approximately 125% over a 5 year period and in the meantime the property generates sufficient cash-flow to cover it’s carrying costs” Cranson added.
Toronto’s housing challenges are expected to continue in 2019 with very low vacancy and little relief in new supply coming on to the market. Owning a rental townhouse complex in this market is a great capital preservation strategy, while the opportunity for future development affords the investors a significant opportunity to realize capital appreciation over the next few years. This site has the potential to provide family-oriented modern housing options as the demand for housing in this area continues to grow over the next 5-10 years.
Plaza Partners - part of the Plazacorp group - focuses on Land & Property Acquisition as medium to long-term investments. In addition to Plaza Partners - Cactus Estates Limited Partnership, Cranson Capital has recently led successful capital raises for Plaza Partners - The Donway Fund, Plaza Partners - Windfield Estates Fund and the Plaza Land Fund. To learn more about investment opportunities with Cranson Capital please visit cransoncapital.com.
About Plaza Partners
Plaza Partners focuses on maximizing investor returns by purchasing cash-flowing assets with medium term growth potential through rezoning and development. Plaza Partners sources opportunities through their extensive network of industry contacts. They co-invest with strategic partners where they feel the merits of partnering with a proven operator are beneficial to investors. They invest in cash-flowing real estate across a range of asset classes including multi-residential and various commercial sectors.
About Cranson Capital
Cranson Capital is a boutique investment banking firm which focuses on providing financial and advisory services to small to medium sized growth businesses. The business consists of two divisions; Cranson Capital Securities and Cranson Capital Solutions, both of which offer unique services to support investors and entrepreneurs. Cranson Capital Securities is an Exempt Market Dealer that specializes in raising capital through private placements in real estate, growth companies and financial services. Cranson Capital Solutions is a corporate finance advisory firm which focuses on finding the right financing solutions for entrepreneurs.
This press release contains "forward-looking statements" including statements with respect to Plaza Partners – The Cactus Estates LP potential returns and appreciation of land values. All forward-looking statements are based on current beliefs as well as various assumptions. By their very nature, forward-looking statements involve inherent risks and uncertainties. Readers should not rely on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially. Plaza Partners – The Cactus Estates LP does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of Plaza Partners – The Cactus Estates LP except as may be required by law. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Plaza Partners – The Cactus Estates LP.