BBG HOLDING I LP
THE 311 DE LA GRANDE CÔTE I SAINT-EUSTACHE, QUÉBEC
Welcome to an exceptional investment opportunity in Saint-Eustache. This superb quintuplex offers a spacious, comfortable living space for an owner-occupant while generating stable rental income. The property is conveniently located near Autoroutes 15, 13, and 640, providing easy access to major roadways.
The owner-occupant unit on the main floor is expansive, featuring a living room with a double-sided fireplace, a bright dining room, and a functional kitchen with an island and a balcony. The master bedroom is particularly luxurious, with an en-suite bathroom and a private balcony leading to a wooden terrace. The unit also includes two other bedrooms, an independent laundry room, and dedicated parking with four outdoor spots and a detached garage. The four additional apartments are well-maintained 4½ units with stable, long-term tenants.
Property Analysis
- This property represents an ideal opportunity for a prospective owner-occupant seeking both a comfortable home and reliable rental income. The building, constructed in 1990, has a total valuation of $938,900.
Financials:
- The property has a potential annual gross income of $57,588. Based on the income statement provided, the projected annual income for 2025 is $62,292, with operating expenses of $22,339.25, resulting in a net operating income of $39,952.75.
Key Features:
- Total Units: 4 units 4 1/2 and 1 unit 6 1/2.
- Property Type: Quintuplex, isolated (detached).
- Building Dimensions: 44.2 x 39 p irr.
- Land Dimensions: 92 x 112.9 p irr.
- Parking: A total of 11 parking spaces, with 10 in the driveway and one in the detached garage.
Market Analysis
The Saint-Eustache rental market is evolving, positioning itself as a "Value-Plus" destination on Montréal's North Shore. It is an attractive, more affordable alternative to higher-priced markets like Laval and Montréal.
Comparative Pricing:
- Saint-Eustache vs. Laval: A standard two-bedroom apartment in Saint-Eustache clusters around $1,750, which represents a discount of approximately $150 per month, or 8-10%, compared to Laval. A new three-bedroom unit in Saint-Eustache is available for around $2,245, offering substantial savings of over $400 per month compared to the average in Laval.
- Local Competition: Saint-Eustache is a direct price competitor to Boisbriand, where a two-bedroom unit averages $1,815, nearly identical to the price of new two-bedroom units in Saint-Eustache.
Market Dynamics:
- REM Effect: The new Réseau express métropolitain (REM) station in nearby Deux-Montagnes enhances Saint-Eustache's appeal by providing premium transit access to downtown Montréal. Residents can access the station via a short 10 to 15-minute drive.
- 2025 Outlook: The market is expected to remain stable, with strong demand balancing a significant injection of new supply both locally and regionally. Rent growth is projected to moderate significantly from the highs of recent years, aligning more closely with the rates of inflation and wage growth, likely in the 3% to 5% range.
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Frequently Asked Questions
Please reach us at investors@bluebeargroup.ca if you cannot find an answer to your question.
BBG Corp. focuses on transforming Canadian multifamily real estate by developing and acquiring high-quality, ecologically responsible, and attainably priced rental properties. Their strategy targets sustainable, tech-integrated properties in Canada's most rapidly expanding urban centers, aligning profit with positive impact.
The mission is to maximize the value of multi-family real estate for investors. This is achieved by optimizing every aspect of property ownership and management to transform properties into high-performing assets that generate competitive returns and build long-term value.
BBG Corp. offers several key benefits:
- Long-Term Wealth Generation in Canada's robust multifamily market.
- Exceptional Real Estate Management to optimize property performance and asset value.
- Stable Cash Flow from meticulously managed rental portfolios.
- Global Investment Opportunities for both Canadian and international investors.
This offering is for "The 311 de la Grande-Côte I," a multifamily property located in Saint-Eustache, a desirable suburb of Montreal.
The Montreal North Shore is a "demand-driven location". It is an ideal environment for mid-class families, which translates into stable, high-quality tenancy. The region shows strong fundamentals, including:
- Population Growth: A steady increase in population.
- Income Growth: Rising median household income.
- Safety: Low crime levels (rated B+).
- Economic Health: A strong and rising employment rate.
- Rent Trends: Local apartment rents are competitive and stable.
The strategy is designed to achieve a targeted 9-12% annual return (Total Project IRR) over a 5-year period. This accounts for all projected income and the property's increased value, magnified by the use of leverage.
Distributions follow a "waterfall" structure that is tiered to favor you, the Limited Partner (LP), until high return hurdles are met:
- Return of Capital First: You are the first to receive cash distributions until you get back 100% of your initial Capital Contribution.
- Preferred Returns (IRR Hurdles): After your capital is returned, profits are split to meet performance targets:
- Tier 1 (Up to 8% IRR): You receive 100% of remaining cash until you reach an 8% per annum Internal Rate of Return (IRR).
- Tier 2 (8% to 14% IRR): You receive 75% of remaining cash until you reach a 14% per annum IRR.
- Tier 3 (Beyond 14% IRR): You receive 60% of all remaining cash after the 14% IRR threshold is met.
All fees are clearly defined in the profit distribution summary:
- One-Time Acquisition Fee: 2% of the total purchase price of the property.
- Annual Asset Management Fee: 2% of the gross rental income.
Yes. As a Limited Partner in this structure, your liability for the Partnership's debts and obligations is strictly limited to the amount of your Capital Contribution. You will not be liable for any further claims or assessments.
No. You are not required to contribute any further amounts to the Partnership beyond your initial Capital Contribution.
The General Partner (GP) has unlimited liability for the debts, liabilities, and obligations of the Partnership. This is a key feature of the GP/LP structure.
The General Partner must exercise its power and duties honestly, in good faith, and in the best interests of the Partnership. They must use the degree of care, diligence, and skill that an ordinary prudent person would use when dealing with another person's property.
To invest, Canadian securities regulations require you to qualify as an "Accredited Investor". An individual qualifies by meeting at least one of the following criteria:
- Income Test: A net income before taxes exceeding $200,000 in each of the last two years (or $300,000 combined with a spouse) and a reasonable expectation to exceed that level in the current year.
- Financial Asset Test: Beneficially own, alone or with a spouse, financial assets (cash, securities, etc.) with an aggregate realizable value (before taxes, net of liabilities) exceeding $1,000,000.
- Net Asset Test: Have, alone or with a spouse, net assets of at least $5,000,000.
- Connect with BBG Corp.
- Sign-up on the Equivesto platform and get approved as an Accredited Investor (AI).
- Invest and send your funds.
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