The Laurel Ridge Fund I is a closed-end limited partnership focused on the development, construction and sale of a diversified portfolio of residential, infill five-plex properties in the Greater Toronto Area (GTA).
FUND I OVERVIEW
Laurel Ridge introduces the Laurel Ridge Fund I LP to offer equity investment in a diversified portfolio of properties replicating the highly successful strategy for residential infill development for which the team has completed numerous syndicated investments in the target markets.
​
Laurel Ridge’s first Fund offering, the Laurel Ridge Fund I LP, is a closed-end limited partnership to fund the development, construction and sale of a diversified portfolio of residential, infill five-plex properties in the Greater Toronto Area (GTA).
TERM
5 YEARS
FUND SIZE
$15M; 20 5-PLEX PROJECTS
TARGET IRR
20.8%
TARGET MOC
1.63X
The Fund investment strategy and processes for Residential Multifamily Infill (RMI) development will build upon the successful historical operations of Laurel Ridge management and capitalize on recent zoning changes that provide for greater density opportunities in the GTA.
​
The Fund portfolio will comprise targeted 20 residential infill properties in desirable neighborhoods within the GTA. Value growth will be driven by the development and construction of purpose-built five-plex rental properties that consist of a 3-storey building with 4 units (including a basement unit) and a coach house unit.
​
Significant property value lift should arise from improved density, strong rental income and multiple exit opportunities driving attractive capitalization rates.
​
Laurel Ridge management’s extensive experience and expertise in this proven strategy allow for efficient and cost-effective development, construction and lease up of acquired properties.
​
Five-year term with two 1-year extensions. 3-year Investment Period with near full deployment by end of Year 2.
![Sharpe_1[1][1].jpg](https://static.wixstatic.com/media/3417fb_45bde77d20e548038fbec8727d02e4ab~mv2.jpg/v1/crop/x_0,y_149,w_3000,h_1937/fill/w_870,h_562,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/Sharpe_1%5B1%5D%5B1%5D.jpg)
INVESTMENT THESIS
Strong Market Tailwinds for Target Rental Markets
​
The GTA represents one of the strongest housing markets in the world due to strong population growth, quality of living and strong and stable job markets.
Regulatory regimes continue to stifle housing development with demand expected to outpace supply for decades.
Higher interest rate environment places home ownership further out of reach for many Canadians.
​
​
Laurel Ridge Tested Processes and Superior Product
Expedited conversion: Targeted 15-month hold period (acquisition to full lease-up) in comparison to larger scale project timelines exceeding 2 years.
Model bypasses Committee of Adjustment phase of permitting process, mitigating development costs and shortening project timelines.
Exceptional product commands premium pricing and rents with limited maintenance costs: each unit is self-contained and individually metered.
Standardized Process ensures consistent timelines and project budgets.
​
Strong Capitalization Rate / Valuation Outlook
​
Properties will qualify for low-cost CMHC commercial financing on completion, driving strong exit valuations.
​
NO HST due on exit under new federal and provincial tax regulation for purpose-build rental development.
​
Conservative Fund base-case exit capitalization rate estimate 5.5%.
​
Buildings appeal to large audience of potential purchasers including individual investors, small institutions, multigenerational families and downsizers.