FAQs

Frequently Asked Questions

If you don’t find the answer to your question, please call or e-mail us and we’ll be sure to get you the information you need.

Who is Prestigious Properties and what do we do?

Prestigious Properties specializes in acquiring, adding value to, and managing multi-family apartment buildings in growth markets with tightening vacancies. We target acquisitions of “C” class buildings in “B” locations where rent and value growth can be achieved. By purchasing with medium to high leverage, combined with ongoing cash-flow from renters, we target a rate of return of 10% per year for our investors in six to seven years. Prestigious Properties offers a proven track record, proven results, and proven management experience based on real assets with regular cash flow and significant equity growth potential. As of fall 2025 well over 600 investors have invested over $43,000,000, with total asset values transacted exceeding $265,000,000 and over $120,000,000 of assets under management at the peak in 2016.

What is the Memphis Limited Partnership?

What is the Memphis Apartment Fund?

The Memphis apartment fund based on an LP is our latest investment opportunity at Prestigious Properties. With the help of EMDs we raise capital for a period of time and then close each Limited Partnership (LP) to new members. Each LP makes its own investments. The Memphis Limited Partnership is Thomas Beyer’s (later operating as Prestigious Properties) 15th syndication. Only one of 15 real estate syndications has lost money due to poor timing, a lengthy dispute with a seller of a large piece of land in Cold Lake, AB and a decline in Alberta from ~2015 to ~2019 after both Rachel Notley of the Alberta NDP and Justin Trudeau assaulted Alberta’s oil & gas based economy (where we then had quite a few assets) with a decline in real estate values. ALL other 13 have made substantial money for our investors.

What does the Memphis Limited Partnership investment entail?

The investment is in Limited Partnership (LP) Units in an Alberta based Limited Partnership formed to acquire, improve and then sell a few multi-family apartment buildings in growth markets the Memphis, TN area.

Am I investing in a single apartment building?

Possibly, but the LP may acquire multiple apartment buildings in the partnership, depending on the amount of capital raised.

Why Memphis?

Why Memphis, TN?

– Low vacancies

– Reliable cash flow after substantial renovations

– Resilience to tariff threats or Canadian economic or political changes in 2025-2027

– Reliable value increase through substantial renovations & rent increases

– Buy low – renovate – stabilize – exit – in less than 2.5 years

– Low going in prices sub $35,000/door – Exit price over $75,000 after renos

– High in-migration from more expensive US areas

– Strong economic activity

More details here Memphis Apartment Fund – Investor Presentation

How does a Limited Partnership (LP) work?

An LP is a preferred and commonly used way to structure a relationship between willing parties for a defined business venture. It is used to reduce risk, delineate responsibilities and share profits in a predetermined way. It is a well thought out, provincially regulated legal vehicle to raise capital for a venture without the expensive overhead of a public company. Each LP has one general partner (GP) and one or more limited partners.

An LP is like a marriage of multiple parties. Like a real marriage, responsibilities are divided up and it takes a very strong sense of structure when 30 or 50 people marry. One party has the expertise for a certain business venture, in our case, multi-family residential real estate in North America. This is the GP. The other parties have a desire to invest some of their capital for significant returns, limited risks and potential tax savings. The GP usually executes all activities of the business venture, reports regularly to the investor partners and shares the profits with the partners in a predetermined fashion.

In essence, the GP-LP relationship is like a trustee trust relationship: the trust (LP) holds all the assets, but the trustee (GP) on behalf of the trust (LP) manages the assets of the trust (LP). The GP in our latest syndication is called Prestigious Properties Kings Castle GP Inc. The benefits to the investors / limited partners are:

a) Limited risk – to the amount invested, even in case of a major disaster or law suit.

b) Clear delineation of responsibility – one party is the general partner which does all the work with a clearly defined fee structure and compensation – usually a combination of (hopefully very small) fixed fees and variable, profit oriented share of profits (30% in our case, over an annual 12% hurdle rate).

c) Allocation of 100% of losses for potential tax savings (usually in early years due to startup costs).

d) Clearly defined time line (up to 2.5 to 3 years in our case) with no early exit options.

e) Possibility to sell units to later partners at annually set prices (usually higher).

f) Existing and well tested legal framework, with oversight by provincially appointed regulators.

g) Annual reporting.

h) Regular optional distributions, usually quarterly.

The GP is owned by Thomas Beyer and Phil Wazonek via their respective holding companies. They direct the day-to-day operations of this LP and manage the activities a) to h) as listed above.

How do I know if I am eligible to invest? What is an Eligible Investor?

Depending on your province of residence, the provincial securities commission requires that all investors must qualify as an Eligible or Accredited Investor, or invest a minimum amount, or is known well by the GP’s executives.

An Eligible Investor is someone who has assets worth over $400,000 or has made over $75,000 in income (or over $150,000 with their spouse) per year over the previous two years.

An Accredited Investor is someone who has over $1,000,000 in financial assets (excluding your personal residence) or has made over $200,000 in income (or over $300,000 with their spouse) per year over the previous two years or has at least $5,000,000 in net assets.

Other exemptions to invest are: a minimum investment over $150,000, or being a friend, family member or close business associate of the executives of the GP.

Is there any difference in the cash versus RRSP investment?

This LP is not RRSP eligible.

What are my liabilities as an investor?

As an investor in the limited partnership, our limited partners are only liable for the amount of their investment. The General Partner, or principals sign all personal guarantees for mortgages and take on all additional liabilities.

What kind of returns can I expect as an investor?

Prestigious Properties aims to deliver double-digit average annual ROI over a 2.5 to 3 year investment horizon. While we have been able to consistently achieve or even vastly exceed these results in the past in many of our syndications through prudent acquisitions, renovations and asset dispositions, there is no guarantee that we will be able to exceed these returns as in the past. Although a look at our track record will give a some indication of the abilities of the General Partner leading the company into the future.

Is there monthly, quarterly or annual cash flow?

This offering will not provide any cash flow before the asset is sold.

What are the tax implications of a LP Investment incl IRS?

What are the tax implications of a LP Investment incl IRS ?

The Canadian LP agreement that you sign provides that income, and net taxable capital gains or losses for purposes of the Tax Act will be allocated to LP Unit holders in the same proportion as distributions received by Unit holders.

T5013 partnership income statements are issued, usually in the latter half of March for the previous tax year.

YOU WILL NOT HAVE TO FILE WITH THE IRS AS A CANADIAN INVESTOR. Accountant letter confirming that is available on request.

Multiple forms of distributions exist although this Memphis LP will not payout distribution until the asset is sold. Assuming a gain, it is a capital gain, clearly shown on the T5013.

a) Distributions that are currently taxable. This portion of distributions for income tax purposes will be treated as regular taxable income (and not treated as dividends or capital gains) to each Unit holder.

b) Distributions that are treated as a dividend received from a Canadian or US subsidiary corporation. As such, it will be subject to a preferential tax treatment that all dividends from Canadian corporations receive (subject to the dividend tax credit).

c) Distributions that represent your portion of capital gains allocated to you relating to gain on the sale of a property in the year, if any. Please note that of the portion reported as capital gains on your tax return, only 50% of this is included in the calculation of your taxable income. The nontaxable portion of the capital gain is not deducted from the adjusted cost base of your Units.

d) Distributions that are not currently taxable and will be treated for income tax purposes as a return of capital. Accordingly, this currently non-taxable portion will reduce the adjusted cost base of the Units owned by each LP Unit holder. If, after deducting the return of capital portion, your adjusted cost base of your Units is a positive amount, no portion of the return of capital will be taxable. If, however, after deducting the return of capital, your adjusted cost base of your Units is a negative amount, you will realize a capital gain equal to the negative amount and your resultant adjusted cost base of your Units will be nil.

Prestigious Properties does not give financial not tax advice (although we do have opinions on those matters). LP Unit holders should consult their tax or financial advisors with respect to any questions they may have concerning tax matters.

What communication can I expect to receive from Prestigious Properties after I invest?

We typically issue quarterly written updates on the progress of the limited partnership along with the financials of the partnership. We pride ourselves in our transparency and encourage all investors to contact us with any additional questions they have regarding the details of the partnership. All documents such as mortgage statements, property appraisals, engineering reports, offers-to-purchase or invoices are available for inspection online in a password-protected area or via our administrative headquarters in Canmore, AB.

Simple questions are always an e-mail or phone call away. Unlike a large REIT or PubCo we answer investor questions directly, and promptly.

What is the time horizon for my investment?

The investment is for 2.5 to 3 years. It takes time to change poor management, to upgrade and renovate existing apartment buildings and to improve revenues and decrease expenses. Therefore, in order to deliver our typically above average returns, we need at least 2.5 to 3 years with the investment for it to materialize into above average returns for our investors.

When can I take my money out of the partnership?

The investment is a 2.5 to 3 year investment, with no early liquidity provisions.

How does Prestigious Properties make its money?

In addition to very small, below industry-standard acquisitions fees and asset management fees as outlined in the Offering Documents, Prestigious Properties, acting as the General Partner of the partnership, shares in the equity appreciation of the assets only after our investors receive 100% of their initial investment back plus 12% annually. We then take 30%.

What are 'Exempt' Securities ? What is an EMD ? What is 'private equity' ?

What is an EMD ? What are “Exempt Securities” ? What is “private equity” ?

In Canada securities commissions regulate the flow of investments. Each province has a security commission, although various national instruments ( NIs) exist to create some overall harmony between the provinces and territories in Canada. Specifically, NI 45-106 regulates how securities can be issued using an exemption.

The exemption NI 45-106 is referring to is the exemption from issuing a prospectus.

NI 45-106 allows a number of exemptions, such as

Friends, family or close business associates
Accredited Investors (those with financial assets over $1,000,000 or an annual income over $200,000 per year or over $300,000 as a couples
Offering Memorandum
Crowd Funding

Prestigious Properties relied in the past primarily on the third exemption, and to this effect has issued OMs since 2005. This offering is for accredited investors or using a crowd funding exemption via Addy and/or Atlas One

Another National Instrument, namely NI 31-103 stipulates that firms that are in the business of issuing securities must be registered. Since we are NOT registered we sell securities through an EMD.

Although Prestigious Properties ultimately issues the securities – LP units – to you, Prestigious Properties or memphis LP is not in the business of issuing securities, nor in the financial or investment advisory business.

We are in the real estate operating business.

Of course, we do have opinions on the world at large, on investment choices and the role of real estate within it, and share these opinions freely on blogs, newspaper articles, occasional seminars or websites. We do not however offer individual investment or financial advise that is specific to each individual. That is done by EMDs through a KYC (Know Your Client) form and an in-depth discussion about your needs and financial situation.

Prestigious Properties is an Exempt Market Product Issuer based on real estate. We are in the real estate business, i.e. finding buildings or occasionally, land parcels, analyzing them, buying them, upgrading them, managing them, improving them and eventually disposing of them.

Firms that are in the business of issuing securities or provide individual investment or financial advice must be registered. These firms are referred to as Exempt Market Dealers (EMDs), and financial advisors that sell securities are referred to as Exempt Market Representatives (EMRs).

Previously Prestigious Properties products were distributed by four EMDs that provide financial and/or suitability advice, namely Sloane Capital, Pangea, Wealthterra or Triview Capital. Today we use Axcess Capital, Addy and/or Atlas One

If you wish to invest with us, we will refer you to one of these EMDs to assess suitability before securities are issued to you, or you can contact them directly.

How do I liquidate my investment?

At the end of 2.5 to 3 years, assuming we have then sold the assets, we will distribute the proceeds according to our offering documents.