- Excavation of drainage basin – 100% complete
- Water main installation on Parkhill Crescent – 100% complete
- Water main installation on Kootenay Way – 100% complete
- Water main installation on Rosebrook Trail – 50% complete
- Wastewater installation from Lund Road to Parkhill Crescent – 100% complete
- Services along Parkhill crescent – 100% complete
- Mortgage balance to date: There has been $4,143,635 paid toward the $5 million purchase price of the Sincerus Park Hill property, representing 83% paid.
Monday, 26 March 2012
The Park hill project in Steinbach, Manitoba has begun development. The following progress has been made to date:
Not only is this located near the downtown core, it sits between 3 of the 4 hospitals in Calgary. This makes for a 10-15 minute commute to those 3 hospitals and a 20-25 miunte commute to the 4th.
This is currently the only listed option that have been built, designed and zoned for medical condo's Calgary.
Unique Market Conditions
Calgary has a by-law that requires 6 parking spaces to be provided for every 1000 square feet of medical office space. With monthly parking rates between $400-500 per month in the down town core, they must compete with other businesses for those spots. This building is located 5 minutes (2.2 km) north of downtown and has a 3 level, 278 stall underground parkade.
Risk Milestones Achieved
Zoning and approvals are one of the largest risks in a development project. Land Use Amendment and Medical Zoning was obtained in 2010. Currently awaiting approval of the development permit.
Performance Based Management
Managers hold the same class of shares as the investors. They have also committed to pay out all investors before they take their portion. The only ongoing management fee is to one of the managers at $5,000 per month to cover ongoing management expenses such as their current marketing campaign.
The appraised value of the investment is $16 per share. Investors are offered value at $15 per share. Management and investors share the same class of share and are treated equally upon exit. Contingency of 15% built in for construction cost over-runs.
When you own something, financing options are far more attractive compared to leasing. For instance, when a doctor leases space, their tenant improvements (TI) are generally financed over the lease term (3-7 years). This causes loan payments for equipment and TI to be quite high resulting from the short amortization period. If the doctor owns the same space, they have more attractive options for financing the equipment and TI along with their 20-30 mortgage.
Medivest Professional Center - Summary Brochure