Full Description

Executive Summary

Type of Property:
100 unit residential townhouse complex consisting of 15 detached buildings, ranging from 4 to 8 units per building.

Address of Property:
1717 Lansing Avenue Sudbury, ON

Size of Site:
8.02 acres

Size of Building:
Various, 15 separate buildings. One building contains 4 units, 8 buildings contain 6 units and 6 buildings contain 8 units.

Zoning:
RR # Row Dwelling Residential

Secondary Plan Designation:
Medium Density Residential District.

Draft Official Plan: Living Area 1

Highest and Best Use:
Continuation of the present use

Exploration for nickel, copper and palladium group metals in the Sudbury Basin is growing at unprecedented levels, helping to ensure the industry's future in Sudbury. Greater Sudbury mining cluster is the largest of its kind in Canada and has been growing
jobs for Sudbury at an annual rate of 10% over the last 5 years.

The subject property is in the multiple family residential sector of the local economy. While multiple family residential units were over supplied over the past decade, the market has improved considerably. Vacancy rates are now at record low levels.

In summary, the multiple family residential market is extremely healthy and will likely to remain a highly sought after commodity in the foreseeable future.

Each residential unit in a multiple family complex requires 1,196 square feet of land area. In the case of the subject property, the maximum density allowed for a site of this size would be 292 units.

During 2005 apartments containing three or more bedrooms averaged $774 per month, while 2006 the same units averaged $781. In 2007 and 2008, this figure is higher due to standard rent increases.
Annual Net Operating Income $ 730,562.00

An 8% capitalization rate is considered realistic for the subject property.