8.01% CAP, Profitable and Established 10 Unit Property, Tillsonburg Ontario

Sell Price: $865,000 (CAD) Furniture / Fixtures included

8.01% cap rate – Income Property – 8 Apartment Units + 2 Office/Workspace Units + Used Car Lot

Sale by owner.

Property Description

8 units, all open concept (bachelor/studio apartments) with private entrance and private bath for each unit. 100% occupancy for over 10 consecutive years. 2 additional units currently rented as storage and workshop

Property is approximately 2/3rd of an acre with an over-sized, large paved parking lot. Building was totally newly built approximately 15 years ago after the original building was burnt down. It is approximately 6,000 sq ft on two levels. It’s a fortress, built with concrete slab lower level and concrete slab upper level. It has block foundation, block walls separating all the units and brick on the exterior. The only wood in the building are the doors and roof.

Originally a motel for the first 15 years of operation until I purchased it, now a longer term rental for over 10 years. Virtually no change from when it was a motel, there are no kitchens in the units. No appliances to repair or clean or replace = lower maintenance costs lower utility expense.

The building had all original roof shingles removed and all new shingles installed in 2015.

New fire alarm panel, new battery, new smoke/heat detectors were installed September 2024.

The property is serviced by municipal water and sewer and electric heat. The property is zoned as The property is zoned as SC-11 Service Commercial Oxford County.

Current per month per apartment average – $925.00 for the residential units. Landlord pays utilities. Tenants pay their own internet.

All tenants are prepared to stay with new ownership. They are all on a month to month lease if new owner prefers vacant possession.

Owner accommodation is possible (up to 3,000 sq ft) by transitioning one or both lower level units with leaseholds.

Local Commerce

Walmart Super Centre within 2.0 KM

Metro & Zehrs Grocery Stores within 2.5 KM

Hospital within 3.0 KM

Multiple Banks, Restaurants, Doctors, Dentists, Pharmacies etc within 5.0 KM

Bus stop within three minute walk from the building.

Financing

Purchase price $865,000

Cash down payment $175,000

Principal balance $690,000

Yearly financing payment $68,963

Total yearly revenues range $105,000

Total yearly operational costs range $ 34,000

NOI range (before loan payment) $ 70,000

Mortgage interest rate 9.50%

Amortization period 29 years

Term 5 years

Please Note: All interested parties are required to;

sign a non disclosure and non compete agreement before any further information is shared

provide two government issued identification documents IE driver’s license, passport etc to verify signature and identity with respect to NDA and NCA

have full finances in place prior to offer. Offers that are “conditional upon financing by a third party” will not be considered.

This business has absentee ownership.

Expansion Potential: 100%

Competition / Market: Very few competitors. Current owner has owned this investment for over ten years now with 100% occupancy rate (THAT IS NOT A TYPO/ERROR 100% occupancy rate). There is a wait list for people that would like to be tenants most of the year.

Reasons for selling: Retirement & relocation

Employees: 1

Years established: over 25 years

Other Information Support & training: Current owner is willing to provide transitional assistance.

Home based: This business can be run from home.