APARTMENT BUILDING/RENTAL PROPERTY INVESTMENT
PARKVIEW PLACE, YORKTON, SASKATCHEWAN
Area Description: Yorkton, SK: located south and west of the downtown core of Yorkton, a small city of approximately 17,000 in east-central Saskatchewan near the Manitoba border. Yorkton is a major retail, agricultural service, financial, medical, distribution, educational centre and transportation hub. The total trading area within a 100 mile radius is estimated to include 110,000 people.
Building Description: The subject property is made up of two, three-level, walk-up buildings containing 24 apartment suites each. There are 13 one-bedroom and 11 two-bedroom suites in each building. Laundry rooms are on the main and upper level of each building. Two storage rooms are located on the middle floors of each building. There are two main level entrances to each building. The front entrances are secured with an intercom security system to each suite. Parking stalls have an electrical outlet connected directly to each individual suite. Suites on the main level have decks and the upper levels have balconies. Each suite has an A/C unit mounted in the exterior living room wall. Many interiors were upgraded in 2007.
The Opportunity/Upside: The vacancy rate in Yorkton is now below 1% as of early 2009, as two new canola crushing plants and a new ethanol plant are currently being constructed. There is also speculation that Agrium will be announcing a new potash mine just south of the city limits. Rent increases were given to tenants in this property at the end of June 2008 for an October 1, 2008 rent increase to $525/month for 1 bedroom units and $625/month for 2 bedroom units. A further $40 - $50/month increase is very doable in mid-2009 based on the historical low vacancy rates and the lack of rental supply in Yorkton..
ROI Analysis: Click image below to enlarge.
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