Hi everybody and welcome. I'm Mike Seal with Referral Network Realty and we're here today
joined with Kelly Fry and Cameron Manning from our BC real estate team. We wanted to
get a chance to show you guys an amazing opportunity that they found in the British Columbia market
and I wanted to get you guys to know them a little bit more and obviously see that there
are still deals happening out on the West Coast. So Cameron, Kelly, you want to tell
us a little bit about yourself, how the market's going out there and maybe we can get right
into this presentation. Absolutely, Mike. We've been involved with
Key Spires since I think it was the fall of 2016. We've never looked back and we love
working with investors. We've been investment realtors for a long time. I'm actually a CPA
by profession and we love crunching the numbers and I got to tell you that this project is
a unicorn for us because BC is always viewed as being the expensive market. This project
that we're going to present today has an affordable price point and it has cash flow and we can't
wait to get into the presentation. Do you have anything else to add, Cam?
Yeah, just in relation to what's going on in the market right now. I mean, obviously
people out there are saying it's a tough market. It's hard to find anything right now. So as
Kelly said, these unicorns, when they come up, this is where investors need to take massive
action and scoop these up before the general public even finds out about these. And sometimes
you got to go a little bit outside the major markets as well. So the opportunity we're
going to present today is not in Vancouver itself, but it's in British Columbia and it
definitely is impacted by the Vancouver ripple effect that happens when the markets start
to improve. However, there's a bit of an isolation that we're going to talk about that's causing
this area to still actually perform very well outside of what's happening with interest
rates and tariffs and everything else.
And I mean, to put it into perspective, it's about a three hour drive from Vancouver. So
it's still easily drivable if you're a landlord locally, that is. And, you know, there's good
property management in place and it's actually one of the areas that's exempt from the Airbnb
ban. So, you know, it's got a lot of attributes that we like.
Yeah, I really liked it when you guys got a chance to send it over because it's really
rare that we see deals now anywhere, not just in BC, but across the country, when
realtors are trying to find that deal that fits well with a real estate investor and
finding something that actually cash flows. You know, we've got a lot of first time investors
that are just getting started now with Keys Buyer and they're trying to find that first
deal that they can take advantage of and get an opportunity. I think a lot of people are
struggling with the resale market stuff where the prices and the rents just kind of don't
mesh together. So maybe you guys can touch on that a little bit while we go through the
presentation and why the pre-construction and the new construction is a benefit.
Yeah, I mean, there's a lot of pressure on developers right now. You know, our government
is sort of scrambling to try and find ways to get developers back into the market to
bring product because the development charges and the costs for developers have been rising.
But this one is a project that I think is so great. And so, like you said, for first
time investors, my own daughter, who's 23, jumped on the opportunity. The deposit required
is really low and the price points are quite affordable.
Yeah. Awesome. It's so hard to hear people say affordable in BC in the same sentence.
But we did it.
Looking forward to it. So I know you guys have a few people on the call with us today.
You guys want to maybe do a little bit of an introduction on who they are. I know you've
got the developer here as well so that we can go through some questions with them. Maybe
we can do that next.
Yeah, for sure. So Salim is our developer who's on the call, which is great. So we can
ask him all the hard questions. And then Nick, who's representing the developer as the listing
agent and team, is also here, very knowledgeable on the project as well. So we look forward
to having their insight on top of what we already know.
I think Salim's muted.
Yeah, we appreciate you having given this opportunity to be with you, Mike, with Kelly
and Cameron. Nick and I are excited about working together with the Key Spires Group.
We feel quite fortunate to be working with such a stellar marketing group like yourselves,
experienced realtors. And we really feel that you've kind of hit the nail on the head with
the various key points here with affordability, being in a region where in a province and
around the whole country, really, affordability is a key point. And we've been able to be
fortunate in finding this hidden gem in Princeton where there is basically zero vacancy. So it's
a great opportunity for
or first time home buyers, anyone that wants to come and retire and anyone that wants to
have a different lifestyle for outdoor living.
There's so many things to do in Princeton.
I think being an investor myself, I asked the key questions when I first made this investment
into coming into Princeton and I think that's what some of your buyers would want to know.
Why Princeton?
So I think if you give me a little opportunity just to explain to you my experience and how
I got involved, I'd be happy to do that.
So normally Princeton was just a gas stop or a stop for me to get my A&W onion rings
on my way into Soyuz.
And when the opportunity came to me to invest into Princeton, I said, no, it's not something
I want to do.
But my friend who introduced me to the opportunity said, just take a look at it.
There's a lot happening in this small little town that's just expanding.
And so I said, I'll do it on one condition if I get an opportunity to meet with the mayor
and council and the CAO.
And I was given that opportunity a week later.
The mayor was so open, I met with the whole council and I said, what's there to do here
in Princeton?
And one of the ladies piped up and said, hey, what isn't there to do here in Princeton?
They've got the world fly fishing tournaments that come in annually.
They've got one of the largest rodeos.
There's hiking.
They've got the cross-country skiing.
Manning Park is right there.
So they've got downhill skiing as well.
They're close to all the vineyards.
So there's so many things to do in Princeton that people underestimate it to be.
So that kind of checked the box for me.
OK, there's things for people to come and reside into Princeton.
I'm like, OK, why else would I invest?
And the key component was industries.
There are major, major industries in Princeton.
There's warehouses, lumber mill.
There's the Hutt Bay copper mine, which is Canada's third largest mine.
So that is very significant.
You've got the agri-greens facility up there that does the psilocybin and mushrooms for
an international market.
All of these key industries produce over $1 billion worth of GDP for the province,
which a lot of people don't know.
And majority of all of these industries are all export-based.
So going to Cameron's point, we are not worried about any issues with tariffs or these industries
are not going to be affected at all.
The one major component after meeting with all decision makers of these companies is
housing.
They're having a major problem with retaining their employees because there's a very shortage,
there's a high shortage of housing in the city.
So they are open to, they're really excited about our opportunity and feel that not only
is it good for families to come in and buy, but it also is a great opportunity for investors
to come in and buy and rent them out.
The cap rates are phenomenal.
It's equal to what we're seeing in the lower mainland, if not better, based on the investment
that we have.
We've been lucky, our entry cost was fantastic.
So we were able to get a really good entry cost in terms of our land costs.
We have a fantastic GC that's based out of Alberta.
So we're not dealing with the high GC costs that you see in the lower mainland.
So we're really excited.
We're going to be delivering a phenomenal product at a really competitive price.
And I think that's going to be our competitive advantage because of our costing that we've
been able to maintain throughout the project.
Nick, did you have anything you wanted to add?
Yeah, my name is Nick Niaksu.
I am the, I represent the developer through Angel Housing Associates.
And one of the reasons why I chose to work with the developer on this project is one
because, you know, the developer's great, very reputable, and they have a great team.
But second is the location.
the opportunity. As an agent for 15 years, I've sold over a billion dollars of real estate myself,
although it houses up to $20 million. And I've worked with a lot of investors. And in Vancouver,
my investor pool is zero now. Nobody's buying any more investments in Vancouver. We're looking at
outlying markets. And to come across a project like this is super exciting for me. And it's not
necessary because as an agent, it's a lower price point. It's a lower commission. It's not about
that. It's about being excited about a project that we can actually put investors in to confidently,
and they can have a secure investment. Nothing is guaranteed. But the metrics in Princeton are,
it reminds me of Vancouver in 2015, 2016, the numbers and the returns that I'm seeing. But
these are real-time numbers in 2025. In an economy as a whole, that's not very good. But
we'll go into more why Princeton is an outlier in that world. But we're looking at numbers like
there's less than 1% vacancy in Princeton right now. For example, Toronto has 3% to 4% vacancy.
Kelowna is 5% to 6% vacancy. Calgary is 5% vacancy. And Vancouver is around 2% vacancy
as a reporting vacancy rate. I feel it's higher than that, but that's the reporting rate.
So the C, economic strengths, and all the green flags that come along when you're doing your
research as an investor, plus the price point, the attainability of a project, of a new development
Princeton point, it is an incredible opportunity. And we'll get into that in the presentation.
And I think that's why we're all here today, because we're very excited about this.
And we're excited to share the information we have.
Awesome. So Cameron, do you guys want to step in and run us through the presentation?
Absolutely. Let me share my screen here. And then let me know if you guys can see it in
full presentation mode. Not yet. You want to click the present button?
I did the purple one. Oh, there we go. Yeah, there we go. I'm not used to Canva. So
already. No, here we go. Here we go. All right. Let's take it here. So this is, of course,
Princeton point. So this is the development that we're talking about here today. And we're going
to run through some of the key highlights of the development. I know we've kind of touched on it
already. We're also going to talk about the economics of why Princeton, show you some of
the supporting evidence as to why this is making a very strong investment. So I'll let Kelly maybe
jump in and take things away. All right, where sophistication meets
outdoor adventure. And I think the strength of the, you know, economic factors there,
coupled together with the beauty and all of the outdoors opportunities in Princeton. Now we can
see the rendering here of the building, which is, you know, very modern looking and would be the
first condominium building of its kind in Princeton. And, you know, in our market here,
there's really a movement away from detached and towards condos and townhomes anyway. So,
you know, the timing is really good. And so from a mapping standpoint, you can see where the big P
is in terms of how far it is from Chilliwack, which is sort of a further suburb of Vancouver.
And it's on the highway that lends itself up to, you know, Kamloops, Kelowna, all the various areas
that people drive through, you know, for recreation or, you know, for living. And one thing that the
realtors brought to our attention immediately was that the workers right now for Princeton
are driving from Hope, from Kamloops, from a Soyuz, because they cannot find places to live,
to work from. And then people are renting rooms and houses at very high daily rates that work at
the hospital in Princeton. And Nick, maybe you can jump in just on the, we talked to some of the
colleagues that you had and just the opportunity for the motels there, what they're like, because
I know you probably have experienced those. Yeah, I have. I mean, it's all really pretty
much the only option I have when I go to Princeton is to stay at, you know, at a motel.
And these are, you know, two-star motels that are generally quite full with mine workers.
And in the summer, tourists, lots of tourists come through at Princeton.
And yeah, the options for short-term stay are very, very limited.
And Nick, I don't know if you know the numbers,
in the summertime, how many people drive through Princeton in a day,
even just to gas up on their way to Kelowna?
It's a good question. I believe the numbers can be extraordinary. I think they're in the
five digits. I think
I've heard up to 20,000 in a week. You get 2,000 or 3,000 visitors that come through Princeton
on any given day, especially in the summer, on the weekends. It is really, really...
If I can just jump in. Nick, when we were doing our marketing survey, in the summer,
it peaks probably around 3 million cars that pass Princeton per month.
I'm not from B.C., and I can even see it's an intersecting point to a number of different
cities that people would travel. Yeah. It's always been known as a
service hub for these different towns, and it has been known for that for a long, long time.
Like you said, Kelly, the highway is great, and it's just a convenient hub point for
people to go through, whether they're going into Merritt, into Kelowna,
or Sawyee. It is a hub that's central to the Okanagan.
There we go. We can see here all of the,
as were mentioned by Salim, the wineries, the sports, the golf.
Now, some of the activities for the outdoors, as you mentioned, the wine tasting, the hunting,
the hiking, the snowshoeing, cross-country skiing, golfing at the Princeton Golf Club.
But what excites me more than even those things, and those things are important because
as an investor, when you invest in a property, your exit strategy, of course, for resale,
is to the consumer who's going to live in the property.
Those outdoor amenities are fantastic, but it's the economic drivers that I think are really,
really important. The Copper Mountain Mining Company, the forestry, sawmills, the pharmaceuticals,
the tourism, the livestock and farming, and I think from what I've been told, and Salim,
maybe you can add to this, there are so many other companies that want to move into that area
that are just held back by the housing.
It's true. The town has a industrial zone and they've, last year, they put them up for sale,
the industrial sites, and those got gobbled up. And there's a lot of companies that are
slowly coming in, whether they're a car wash or a service company mechanic. There's been
companies that have moved in there for simple things that people need on an everyday basis,
like a storage, an RV park. There's also talks of other industries coming in,
furniture manufacturers, being close to the lumber industry. So, there's a lot of industries
that do want to come, but they basically stop because they know that there isn't housing there
for their employees. You're looking at companies that want to come in with 30, 40 plus people that
they want to employ and bring industry, because Princeton has really excellent price points for
industrial land. That's very cheap compared to the rest of the province. And that's been
done by design by the town and the mayor. They're very forward-thinking. So, they've done that
strategically. They have fiber that's really important for us to mention in the town of
Princeton, allowing people to work remotely and attract other industries. So, there's a lot of
industries, and they have phenomenal power. There's no shortage of power in the town. So,
any other industry that wants to come on board, that wants to come into Princeton,
there's no deterrent. The deterrent is housing. So, this development that we're doing is
we validate the vision of the town, and it essentially is an excellent investment to make,
because it checks all the boxes for industry, for tourism, and anyone that just wants to just retire.
So, as we mentioned, there are lots of local amenities at your fingertips. There's also a
minor hockey, golfing, breathtaking trails in the Kettle Valley Trail, world-class fishing. And you're
never more than five minutes away from all these conveniences. And so, this map sort of indicates,
you can see Savon Foods, which is a large grocery chain here in BC, is already present,
a large grocery chain here in BC is already present, Shoppers Drug Mart.
So, even though it's a smaller community,
community, and then home hardware, they've got a lot of things that, you know, you wouldn't
expect in a smaller town.
And one thing to point out as well, just with this map, you know, you can see this middle
part here where all the numbers are, that's kind of the downtown area.
So we're just outside the downtown area, so you're not right in the hustle and bustle.
And yet, you've also noticed that there is an airport and a hospital as well.
So this this small town has everything that that people possibly could want.
So
if I can jump in as well, it also has the, you know, elementary school and your secondary
school as well.
So it has the necessary school requirements as well for anyone that wants to reside in
Princeton.
Now, just what Salim was saying earlier, just in regards to all the industries that are
coming in and the need for housing.
So the mayor of Princeton has put a position forward that they need between 300 to 500
homes to come into Princeton in order to achieve what they want in terms of growth
from the industry, from being able to provide housing to all the employees that are coming
in.
So this is a large undertaking for such a small town.
They haven't had this level of development in decades.
So this project here is just a small piece of what is actually required to hit that mandate
at this point.
And this project is, Salim, is 150 units, correct, in the two phases?
Correct.
Yeah.
And I think one of the shocking things you'll notice is the mayor is extremely young.
And you know, you don't see young mayors like this very often.
So very progressive.
Yeah.
And very pro-business.
Yeah, the whole staff is young and progressive and full, and they're all about growth.
And they're, and you know, you know, as a developer, or even as a salesperson, you know,
I had the mayor's cell phone number.
He gave it to me.
If I have any questions, any concerns, give him a call.
So this is, talk about, you know, government working with private industry.
It is very, very refreshing to say that in our industry.
I think we all can agree on that.
100%.
Absolutely.
And with regards to the mines, you can see here on the screen that the daily capacity
is 45,000 tonnes of the primary metals.
And then there's also a daily mill capacity of another 5,300 tonnes, which is fairly significant.
In terms of what you've seen with the mine, I believe there's been a bunch more hiring
of people for the mines.
Is that correct, Slim?
Yeah, there's been, I think, in this presentation, we've got it at 450, but I think they've hired
up to 750 new hires.
And that number is going to continue to increase.
The mine has another shelf life, mine life of 21 years.
And they're expanding into an adjacent mountain, the original mountain that they started their
mining operations in.
With new technology, they're going back and, you know, re-mining that mountain.
I'll give a little context as well.
So Copper Mountain Mine was sold to Hud Bay around two years ago.
So Hud Bay being one of the largest mining companies in Canada, bought this mine and
they replaced, you would say, dated mining equipment and technology with, you know, state-of-the-art
mining equipment and technology.
And they've basically given this mine horsepower.
And Slim's correct.
At the time of that sale, there was 450 employees.
Now there's 681 employees.
This does not include contractors.
This is employed by Hud Bay.
So there's probably right now another 100 to 150 contractors, like engineers, specialty
contractors, geotechs that come up under contract and they come to Princeton.
They stay for one or two weeks at a time and then they go back home.
And you know, there really is probably more of an 800 to 850 person operation right now.
And they're continuing to hire more and more as they expand the mine.
Another really good point about the mine is that it is tariff-proof.
So Mitsubishi has the rights to 85% of the copper of the mine, and that's all pre-sold.
So regardless of what happens with the U.S., they've already sold all the copper.
So the more that they can produce, the more that will be purchased by Mitsubishi.
And this is a huge reason why this is an outlying industry, especially in Princeton.
It is recession-proof.
And we've already seen that.
that we're you know it is a pair of proof we've already seen that and this
is one of the only economies in in BC that's thriving in both real estate and
in industry because of that in the natural resource sector.
And I think also to add to what you've just said Nick the thing that
investors need to understand is that the sawmill the hospital and the mine all
have above average income levels for their workers so you know it's not
uncommon for workers to be making you know a hundred thousand in this area so
in terms of the offering for what they would want to live in you know something
brand new like these condos would be perfect.
And affordable in that price range with their income like very affordable.
Yeah yeah you nailed it on the head Kelly you know they're being paid really well
up at that mine in the mill they're treated really well.
So I guess this is just um you know recent hiring posts that the mine has
put out or Hudbay has put out and you can see it's all just in July
alone.
Yeah the touch on that so yeah so when I was talking to one of the directors
of the mine up there their their starting wages are a hundred thousand
but the but the average starting reach is about 140,000 a year
and that's for a basic labor on site. So if you're if you're if you are
you know if you are just a roughneck up there working on the site you're making
probably 140,000 plus bonuses every year.
So there is a lot of money in Princeton it is a very
rich community. Yeah speaking about very rich community
the last line here on this part where it says it's a very expensive
it's very expensive to rent here because there's no availability. This is as
investors what we also want to be looking for very low vacancy which is
driving rents up. So when you're getting in at an
affordable price you know that the rents are going to be high enough
to be able to generate cash flow and we will show you guys some examples of some
four ways to win a little later on. But these properties will cash flow just
in like just straight rentals at this point
and then you've got the fact of Airbnb not being blocked in this
this area there's several other advantages that you have here
and it's just because there's literally no availability for housing both on
purchasing as well as for the rental aspect.
Well that's the bit that's the stuff that really made me excited about the
project when I sent it over is it's always been hard to find
pre-construction condos that are cash flowing at day one.
You know a lot of times people were looking at them making the acquisition
and really betting on the appreciation of what was happening in the market as
it grew more so than the day-to-day operation.
So seeing it cash flowing from day one where it carries its own
weight I think is really valuable especially in today's market.
Absolutely. Now maybe Salim you could speak to the features and finishes here
that we're seeing on the screen since you're the one responsible.
Yeah no no problem. I just want to finish up with what
Mike was saying too about the affordability you know we're 10%
down the project cash flows and it does
the cash flow positivity was when the interest rates were up
when we ran the numbers. So you run the numbers today
when the interest rates now have been you know stabilized and they've been
decreased with potential decreases coming in the future by what I read
yesterday. I think it it bodes well for the
investors coming in. Absolutely. Touching on the the finishing
we really wanted to give the town of Princeton
something you know that we could be proud of
and they would be proud of too and we wanted to come in with a
contemporary kitchen you know with you know really great
lighting that is that you wouldn't see up in
Princeton and that you would basically see in
you know down in the lower mainland. So we wanted to have
you know the name brand you know faucets and toilets and
having the nice backsplashes the proper stainless steel
fridges with the full appliance package and dishwasher as well.
Being a community that's also you know that fluctuates with climate in
the summer it's quite hot and winter gets quite cold we wanted to
have you know a proper system where we can also
you know offer air conditioning which you know a lot of people don't
have in you know in the area that have
older units the newer units.
are getting air conditioning. So we really wanted to offer amenities that you would see in the lower
mainland or in other cosmopolitan cities in Princeton. So anyone that wants to rent a unit,
they'll get higher rents than what's being offered in the market currently.
I'd like to add to that as well, for the finishings as well. So we sat down with intent
before, rather than just putting together a basic finishing package, with the developer,
asking who's going to be our buyer. And knowing that investors are going to be buying, well,
we need to provide maintenance-friendly finishings as well. So there's laminate
flooring throughout. There's no carpet, which is very good for investors. And it's very nice
laminate too. So it's not cheap plastic laminate. It's a really nice, it's a beautiful laminate
flooring that they selected. And it's going to be aesthetically pleasing and maintenance-friendly
as well. Being an investor myself, owning multiple properties, carpet is terrible.
Also touching on being a low-rise building, oftentimes you'll see baseboard heating
systems with optional sort of attached to the wall, AC units. This is central air.
This isn't baseboard heating. This is all heating and cooling through a central air system,
which is a notable upgrade in any community with low-rise wood frame development.
Yeah, we don't see it often.
You don't, no. So this is a very, very nice addition. And then the modern finishes like
quartzite countertops, very easy to maintain, beautiful sleek finishes, two-tone cabinetry.
Again, the developer is so great in this aspect, sitting down with the architect and the agents,
especially agents that are experienced, that have a lot of influence on what's
being delivered today. And we're so happy to present nice floor plans that are efficient,
beautiful finishes, proper sized living areas. I'm sure as investors, we've all seen floor plans
that don't make any sense. It's like, we can't fit a bed in this location. We can't fit a couch
in this location. We can't fit a dining area in this location. These floor plans in all typologies
are fantastic. And where we can offer beautiful balconies, we have those as well in all the
one-bedrooms and up. The studios don't have balconies, but every single unit that's a
one-bedroom and bigger have beautiful balconies. And yeah, we're very proud to present these floor
plans and these finishing packages to our buyers. They're fantastic. And they're by far,
hands down, better than anything in Princeton right now. Not even close.
Sorry, Kelly. Nick, if I can just jump in, Nick makes a really good point about the balconies.
We've got a great view of the river. So we wanted to take advantage of that and allow
anyone that has a balcony to enjoy those viewpoints that they may get on the riverside.
We've also got a rooftop deck which is on the west side and it is going to be something
really special for anyone that lives there. We're planning on having gas barbecues up there,
a couple of hot tubs as part of the amenities that we would offer and allow people to enjoy
that outdoor space. So Salim, I had a question that has come up when we talked about this
project with other people in the past. And it's just in regards to the fact that you do have the
river view, but that also creates some concern with potential flooding. So I know you guys had
investigated that as well. Maybe you can touch on why you guys are where the location is. It's
not going to have any issues in that area. Oh, it's a great point, Cameron. And it's something
that we addressed from the very beginning. When that flood happened, that was a 500-year event
and it was devastating to the town of Princeton as well as Hope and we saw in Abbotsford as well
and other communities in Merritt. But the nice thing about this property, it is right next to
the river, but it is up higher. The elevation is much higher than that 500-year event. So it would
not reach the building. If it did, we designed the building in such a way where we have the first
floor is all
concrete slab. And we also have the original design had an underground, which would prevent
any flooding to basically affect any of the other units. So it's designed in such a way where
if it did surpass that 500 year event, which we really don't think it would because it didn't,
it wasn't, the water level never ever reached that level. And we've also set the building back
to a 30 meter setback from the river, which is 15 meters more than a lot of other communities.
So, you know, those are the three factors which we've implemented, you know, to make sure that
the building is going to be sound from a flood standpoint.
Really well thought out storm water management plan.
Correct.
Yeah. And just some more context here as well. Even within that 15 meter setback,
when we had that 500 year event, the water did not reach that elevation. So the be back 30 meters
is it's, it's effectively foolproof at this point.
That's good to know.
Wow. That's all I have to say about these numbers. So you can see this
500 under $500,000 for the biggest unit in the building.
Yeah. I mean, 269,000 for a studio. I mean, it's, it's kind of like what a parking stall costs
here. So, you know, we love that starting price, one bedroom starting at 339, two bedrooms at 449.
And these are big one bedrooms, like we sell one, two, or sorry, two bedrooms, we sell them,
and they're like 683 square feet or 700. So these are a good size.
I've got a junior two on the market right now that is like 620 square feet right now. And
the second bedroom does not have a window because it's a junior two. So just gives you perspective
of the types of units that they're building right now.
And so you can see below on the long term rental side, you know, even the studios are commanding
1350 to 1450, the one bedroom 1600 to 1700, and the two bedrooms 1900 to 2200. And that's like,
quite comparable to what we would see in the lower mainline here. So they, you know, it's very
impressive. And these are not aggressive targets. These are quite expected conservative targets.
Then you can see the short term rental rates, assuming a 60% occupancy, $100 a night, 125 a
night and 150 a night, all quite reasonable. Yeah, yeah. And I'll touch on that. Oh, sorry.
Yeah, no, go ahead, Nick.
Yeah, I'll touch on a bit more as well. We and we use conservative numbers as well,
that the average one bedroom rate in BC is just over as 2050 per month. And the average, you know,
as we know, as agents, the average one bedroom is, it's probably in the studio size around the 450
to $500 a square foot or 500, sorry, square feet. So these are conservative, I honestly feel
based on the strength of the Princeton rental market, these numbers are going to be, you know,
could be at least 10-20% higher. But as we're running our numbers as an investor, we should
always be running our numbers at a C or B level and shooting for A's. So these are our C and B
levels in our in terms of our revenue reports, however, likely will be much higher. And even on
the short term rental side, like I said, you know, the options in Princeton for a hotel room
are very limited. But these hotel room rates are much higher than $100 per night, the 13140 number
for a just a basic room with with maybe if you're lucky, a little kitchenette with like a little
coffee maker. Remember, these are full kitchens in our in our units, these are these are condos
that you would live in. So the demand for a product like this is going to be much higher
for for the consumer than it would be for a little motel unit.
I think something I'll point out here as well, just where it says anticipated market rents,
these are also based on 2023 reports as well. And in these areas, we're going to be experiencing
with with a low vacancy, it's going to put that upward pressure. And we also have the build time,
right. So we're analyzing these with rents that we would think we could generate if this
building was done today. And so in most of these situations, if you have an extended period of low
vacancy, that upward pressure by the time the building is completed will likely see
the conservative numbers also being higher by the time that's done as well. So yeah,
I've seen it in other buildings where the average rental rate, you know, will top somewhere between
five to 7% by the time the building is completed from the projected numbers that we worked out at
the time we did it. No.
Just touching base on those rent numbers,
anybody that wants to,
like Kelly had mentioned earlier on in the call,
was that we're exempt from Airbnb.
So anyone that wants to have their unit Airbnb,
they're gonna get much higher rates
than those $100, $150 daily rates.
They'll command a lot more,
especially with the views and the deck and the jacuzzis,
they'll be able to command a lot higher.
None of the hotels have any of those type of features
that we will have.
The walking trails,
we're gonna also have walking trails around the property
that goes right down to the river.
So it's gonna be not only beautiful, new,
it's the top line of everything,
it's going to be something unique in the town of Princeton.
Yes, so this is the other stuff that I really liked
was the foreign buyer exemption.
It gives us an opportunity
for not only our Canadian Keyspire members
to take advantage of the opportunity,
but our American investors
that are part of our Keyspire community
to be able to take advantage of the opportunity as well,
which is really, really an incentive for us
to be able to put it to the membership
because everyone can have a chance
to take an opportunity at it.
I know that foreign buyer ban
in a lot of the other major markets
has really kind of held back that expectation
or ability for them to be able to enter.
So this is another good thing.
And with the dollar,
the way it is against the US dollar
makes it even more value for them.
Yeah, these properties are very affordable
with the US dollars.
But yeah, no, to your point,
and Salim, I know you've done the research
on this a little bit more,
but both the first two points there,
the foreign buyer tax exempt
as well as the short-term rental restrictions
is a big part is due to the size of Princeton, right?
Their population falls under the threshold
for both of these restrictions,
meaning that investors that normally would be restricted
in the major markets,
even in the Fraser Valley,
like Abbotsford, Mich, and Chilliwack,
they're exempt due to the fact that the population,
the permanent population is quite low in these areas.
Maybe Salim, you can expand a little bit on that.
Yeah, that's quite true based on the provincial guidelines,
but it has also been a mandate by the mayor and council.
They want to attract tourism.
We just saw on the earlier slides
what there is to do in Princeton.
And based on that,
they have shortages of hotel rooms.
And they really feel that if they are able
to attract Airbnbs
and offer additional type of tourism accommodation,
then they feel that it is gonna add a lot more value
to the town as well.
And it'll open up more space for the hotels as well
to offer a different product to other tourists
that are coming into town.
And that goes completely opposite
of what most other city councils are doing out there,
where some of the smaller towns
will opt into these rental bans
following misguided reports and everything.
Whereas they understand the need for it
and having that progressive mentality,
they're keeping that restriction
off of the city of Princeton.
They already fall under the exempt,
but then cities can opt in.
They're opting not to opt in.
That's a great point.
And I was just gonna mention that as well.
City, investor-friendly areas like Tofino, BC,
where the Airbnb market was very strong,
Tofino opted in to banning Airbnb.
So Spencer has been very vocal saying that Princeton,
it will not be doing this.
They understand that short-term rental
is a key part of the success of their town.
And because they have so many sort of one to two week,
contractors that come in and out
for the mine and for the mill.
So this is not changing.
Well, it's such an important thing
for people to consider in a community that's growing
and the population's booming and they're trying to come in
and they're trying to get their footing on the ground
and decide, is this the place
that we wanna make our transition
as employment opportunities grow in the community?
People are coming there to kind of research,
is this the right fit for me to bring my family?
And when there's limited places for them to stay,
it hinders the ability for them to do the right research.
So I think that a progressive community like Princeton
is a chance for investors.
I always look at it like, hey, this is,
we're always looking for that space
that's the up-and-coming locations
that's got all the-
checkboxes that are working. This really seems to have all of the key points of where an investor
would want to place their money in today's market. One thing I wanted to add to Mike is that we've
shown the long-term rental and we've shown the short-term but we haven't shown the furnished
midterm and I think there's a really good bump up there as well on income for just furnishing it for
the longer-term contracts. All right, I believe that's the end of this presentation. Awesome,
so maybe we get a chance to go into some numbers if that works for you, Cam, because I think that
that's the most exciting part that I've seen is these, these four ways to win. These are,
you know, I mean how often do we see cash flow like this in any given market? We just don't.
Yeah, so this one, this one here is based off of one of the two-bedroom units here, so
as you can see here the purchase price is $499, however obviously we have to factor in there's
always going to be GST when you've got new construction, so the final price is going to be
$440, $895 on this. We ran these based on the conservative, now we bumped up the occupancy
to about 70% because we really believe that, you know, 60% is not going to happen, it's going to
be much higher than that. We're maybe a little, we're still conservative, maybe a little more
aggressive. Factoring all that in, you can see here, once you factor in all of your expenses,
the cash flow is quite strong at $730 a month, and again that's being very conservative. There
are going to be times where your rents are going to be higher, there's going to be the,
the summer times where you might blow that out of the water, especially if you've got people coming
in for all the recreation. This is just kind of factoring on one base rent all the way across
the month. So as you can see here, you're generating about a 25%, almost 26% return on
your money, which we haven't seen ROI like that in the Lower Mainland in like nearly a decade at
this point. We were lucky if we were breaking 20%, so there's very strong cash flow. Now,
Kelly, do you want to add anything to that or? Yeah, well as someone who ran 23 Airbnbs myself
before I got shut down by the government, you know, I look at, I look at this and I say okay,
I've got a lot of furniture by the way, so if anybody needs them,
you know, this, this is good because it's got an 18% property management in here, it's got the 3%
Airbnb fee, it's got supply costs, like this is very realistic, but having gone into the long-term
furnished market myself now to try and, you know, handle these shutdowns of my other Airbnbs,
you could still make this kind of cash flow on a long-term furnished because you wouldn't have a
lot of these expenses on a long-term furnished, so it's quite achievable even on a mid-term
rental here. And something else I wanted to point out just as I'm re-looking at this here,
Salim had mentioned when we were running our numbers before, we were running them,
you know, months ago when interest rates were higher, so as you can see here, we're running
this at a slightly higher interest rate, you can probably get a little bit better than that today,
and two years from now we, I'm assuming, you know, as things balance out, we'll probably see
a little bit lower from there as well, but the big, big key thing here, and this is to a point
that Mike, you and I had a conversation, Kelly and I, about a lot of cities right now are having
to run their cash flow numbers with higher down payments, right, we're looking 25, 30% down
payments just to make cash flow work, and as you can see here, we're running this based off of your
standard investment 20%, so these do cash flow, just putting the standard investment 20% down.
Well, and it's still showing $734 positive cash flow.
And again, other things that we see out there in the market is there's not a lot of properties or
opportunities that people can access with $100,000 down, you know, most of the income properties that
I'm seeing now, I mean, you know, a couple different obstacles to it is, one, the price
points are higher, closer to the $600,000 to $800,000 mark to get started on anything, two,
they don't cash flow, you know, and three, a lot of them are older buildings that need a bunch of
improvements in work, and you're limited to the tenancy that's in the building. It's what's there
is what you're stuck with. So, I mean, we all struggle with older properties and trying to
turn tenants over to be able to get the best value, or to be able to get vacancy on it so that
you can do the rehabs that are needed. This is the kind of thing that's just simple and clean,
it's turnkey, it's relatively hands-off overall, for a first-time investor to get in and get
started. And from all the indicators that you guys have shown me, it sounds like the economy
there in that market is going to have a relatively strong growth in value.
And I don't know if you've noticed, too, we've got the furniture in the cash required to close
there, as well as the other costs. Yeah, I see that.
So your cash required to close is actually under $100,000.
That's unbelievable, and I love her numbers, too, because they are conservative.
And that's how I really appreciate when, when people are honest with their
numbers and, um, with, with growth, with potential to actually improve on them.
These are very conservative numbers and, and the acquisition price on a two
bedroom under $500 a square foot.
Like, where do you see that?
And anywhere anymore, you don't, right.
You know, you're in the, in the Vancouver market, the Fraser Valley market.
You're at, you know, I'm actually Vancouver.
We don't even look at that, but at Fraser Valley, you're probably
now at 700 to $800 a square foot.
Uh, Kelowna, you're at, you know, a thousand dollars a square foot now for
anything that's worth even looking at, but your, your price, your prices are
now for a two bedroom and you're, you're adding a couple hundred thousand
dollars onto that ticket price.
So the actual attainability of the, of, of, and this isn't, this isn't a
outlier two bedroom as being the, you know, the, the cheapest unit.
This is what a standard two bedroom will go for on a second or third
level, and then they go up from there.
But you can, but, but the numbers are just absolutely fantastic.
And, um, and to see a return like this in, in, in numbers that make sense is very
exciting for any market in Canada now.
Uh, Nick and Salim, can you speak to the appreciation rate in that area?
Because we've only used a modest 3.5% for Princeton.
Yeah, we're just looking at that.
And, um, I'm, I don't know what the exact numbers are going to be.
Um, and, uh, but I think your appreciation rate at three and a half
percent is, is on the low side, um, based on, you know, what we see the future
growth of, of Princeton and the outlying areas, um, I'm going to defer to Nick,
but before I do, you know, I really feel that the, the, the product is new.
Um, the real estate market right now currently is a anomaly in BC.
It's roughly around 38%, uh, growth, um, year over year in the
last two years, um, in, in Princeton.
So there is a high demand.
There is people that want to come into the town.
And I think with, uh, new product like this coming in, into the town of
Princeton is going to, uh, then spear other industries to come in and, and,
you know, the whole cycle of creating appreciation and growth in a, in a
town, um, is, is going to kind of snowball effect, um, you know, with this
development, but I'll let Nick maybe Nick's a little bit more in tune to some
of the numbers of appreciation in, in the market.
Yeah, this, again, this is a complete outlier market.
So where the average price dropped between two to 4% in, um, 24 or
2020 or 2025, um, Princeton saw a 14% growth in price.
Yeah.
I mean, it's supply and demand when you got a whole bunch of employment and you
got a whole bunch of people moving to an area, then you've got high paying jobs
and there's no houses to live in.
The prices go up because they're pushing, you know, and, uh, for the older people
who own the homes for a long period of time, they hit the lotto, you know, and
the ones coming in, they still feel like it's good value, which is really, really
what's important in the market space, right.
Is to see things that are still of what people feel is good value.
It is, that is the truth.
I mean, you know, the, and just to see a really cool outlier market like this
performs so well, um, you know, and, and to be in a market that doesn't really
exist right now, which, which is this type of, um, like I would, this, this
would be considered luxury condo market in that space.
Um, yeah, it's, you know, I'm going to tell you right now, if, if, if these
are ready today, they'd be, you know, there would be a lineup of people right
now looking for rentals, long-term short-term midterm, you name it.
There isn't enough.
And I, and I, and don't just listen to us go on, go on marketplace, have a
look at what's available in a short-term midterm long-term right now in Princeton,
BC, you'll see it for yourself.
It's, it is absolutely, um, uh, incredible to see a market thrive like this.
And this, again, you know, this, you would think you'd be looking at 2015,
2016 numbers, or at least through that lens at a real estate market, but it's
2025 and it is stronger than ever.
Um, the agents up there have been selling, I talk to them all the time.
They've been selling more of this in the last year than they've
sold in, you know, 2022, 2023.
So with the introduction of, of HUD bay by an upper mountain
mine, that has changed everything.
Nick, Celine, quick question for you guys.
So, you know, a lot of the members who are watching this
are likely not in and around the BC market.
Some might be, we might be looking at some people
in Alberta, Toronto, Montreal, maybe even the US.
What kind of options do they have for, you know,
hands off ownership of this
in terms of having property management
either on the regular management
or on the Airbnb side of it?
Yeah, I can talk to that a bit more.
So there are a couple of dedicated property managers
in Princeton that we would recommend
that are fully aligned with the project,
one being from Century 21.
And we've vetted these agents well
and they perform extremely well.
So we have that covered fully.
We also have somebody who's pretty cool.
His name is Braden.
You may know him as Mr. Airbnb on social media.
He's one of the more popular hosts in Canada.
And he's fully on board with this project.
This is the only project in British Columbia
that he'll put his name behind.
So if you wanted to use his services and his expertise,
he would gladly be your host for short-term rental.
So we have everything covered
and we can provide more information
about these service providers.
And I just wanted to point out too,
so bringing that up,
we did factor that into our calculation as well.
And 18%, obviously Airbnb is a higher percent management fee
and yet you're paying 18%
and you're still cash flowing significantly in that market.
So these continue to show the performance
that is possible in this area.
I mean, I just want to add,
as someone who ran multiple Airbnbs
all over the Fraser Valley,
I ran at about 24 day average for the entire year
across all my properties.
I mean, it was no problem to be full all the time.
That's amazing.
It's all I can say, you know.
Cashflow.
I don't know where those people are staying now
because I can't help them.
Yeah.
In their car, I'm thinking, right?
Walmart parking lot.
Yeah.
Oh boy.
There's more and more of those happening.
And for multiple reasons too, you know.
So I really wanted to get a chance
to thank you guys so much.
I appreciate it so much.
If those of you who are listening or watching
want to get in contact with Kelly and Cam,
want to get some more information,
we are posting this opportunity
in your Keyspire Connect app.
You will find it under the deals of the week.
You'll also find it in our upcoming previews.
So we'll have this video recorded
and then replayed in there.
So you'll get a chance to get all the detailed information
that you need for the project,
as well as the four ways to win.
If you have any questions, as I mentioned,
reach out to us at keyspire at referralnetworkrealty.com
or you can click your Keyspire Referral Network
Realty Manager contact in there, book a call,
and we'll be happy to get you guys connected
to Kelly and Cam.
Kelly, you had something else to say?
I just wanted to add one more thing.
The deposit structure is extremely low.
It's like 5%, two and a half, two and a half.
So, I mean, it's very little cash to tie up
for such a great project, you know, opportunity.
And how many opportunities do we have in the building?
So you say there's 25 or 30 units
that we'd be able to make available to members?
Yeah, I would say we could, for you guys,
we can make 30 available.
And the two and a half and two and a half
for the second and third deposit
are only for Keyspire members and for Kelly Frye's team.
That's not to the market.
So normally it's five and five,
but we can make it more flexible for your team, no problem.
And no assignment fee too.
Yeah.
We're going to remove the assignment fee
for Kelly Frye and Keyspire customers.
And I want to add one other thing that we've noticed
that's been really successful for members
is the sense of community
that we actually are able to obtain
by billing with multiple members in a building.
It's a, you know, strength in numbers,
camaraderie feel to the organization
and the ability and success of these projects.
You know, we've had great success
with some of our Keyspire community projects
in the Ontario market, in the Alberta market.
Now we've finally got something here
that I think is really unique in a really cool location
with all of the check boxes
that people want to look at in an investor market.
This is a, not just a place for one.
individual to be able to buy in, but it's a chance for people to
work together as a team to really bring something together
within a community that we can be proud of.
And to your point, Mike, I've experienced this on projects
where we sold a lot for Keyspire. We can then stack the
Strata Council with all Keyspire members, which means it's pro
investor, and you know, we stop any insanity from happening.
Just to that point as well. I mean, as much as the community
is trying to promote Airbnb, at the end of the day, the Strata
can still pass bylaws in British Columbia. So if you do have a
community, you know, Selim can only do so much, but once he's
out of the building, and it's all into the hands of the
owners, they need to make sure that they maintain the bylaws
in a way that are investor friendly and continue to
perform well. And so if you've got a large community of
investors that all get together purchasing this building, go on
the council and make sure this building is run efficiently, at
the same time investor friendly, that will protect your
investment long term.
That's terrific. I really appreciate you guys coming out
today. I love the opportunity. I'm excited to get it out to all
the membership. I'm hoping that we're going to have lots of
members that are interested in the area. And we look forward to
getting a chance to do another call with everyone soon.
Awesome. Thank you.
Thank you, everyone. Thanks.