How Cacoeli Achieves Superior Returns: Part 2

Our team uses rigorous strategies to successfully execute numerous real estate repositioning projects. In part-two of our strategy features, we dive into our evaluation of a city’s economic and business attractiveness and how it enables Cacoeli in achieving superior returns.

What is economic and business attractiveness?

A city’s economic and business attractiveness can be defined as the available/open offerings made by a local entity, such as a city’s government, for entrepreneurial ventures and established businesses within its borders. This can come in the form of grants, interest-free loans, and other financial and/or zoning elements that are geared towards increasing, enhancing and/or strengthening local business development.

It’s all in the Documents

Core documents, such as Official Planning documents, zoning-designations, programs and funding towards local entrepreneurialism can reveal a lot about the future of a space. In critically assessing and evaluating planning documents, Cacoeli is well equipped to propose a suitable project for a given location, ensuring that it fits nicely within the existing and future landscape.

Economic-Business Attractiveness & Real Estate 

Another critical research variable considered by the Cacoeli team is the relationship between business growth and real estate demand. When localities encourage, support and maintain business development, greater job opportunities begin to open up. More jobs, particularly high-skilled jobs, triggers an influx of skilled-workers to fill the job supply demand. Increased numbers of skilled workers impacts overall average earnings and income levels of a particular city, while also applying pressures on its housing availability and supply. Increased employment opportunities lead to an influx of high-earning workers, and a decrease in housing vacancies and supply, causing land scarcity and increased, competitive land values. When local economies experience such a change, property developers express greater interest and initiate additional development projects. This cycle is illustrated below:

So…Why Does Economic and Business Attractiveness Matter to Cacoeli?

Our job as your asset manager is to seek, assess and evaluate information to the best of our ability and advantage. By interpreting past, current, and future economic plans for a city of interest, Cacoeli is able to set realistic expectations and achievements for all of our opportunistic projects.

The goal: minimize operation costs, maximize investor returns.

Learn more about economic and business attractiveness from our CEO, Jedidiah Liu, in this short-clip: 

Interested in getting involved with our deeply-researched, opportunistic, multi-family real estate investment projects?

Get in touch with us today! 

How Cacoeli Achieves Superior Returns

Our team uses rigorous internal strategies to successfully execute numerous real estate repositioning projects and maximizing the return on investment for our clients.

One of our vital factors when considering a given project is – location, location, location!

 

Secondary Markets Provide Great Upside

At Cacoeli, we focus on cities with populations of 100,000-200,000. Typically, these are located in secondary markets throughout Ontario, Canada. This population density is suitable for a dynamic rental market, while also capable of revealing important data that feed our economic projections & decisions.

 

It’s all in the Analysis 

But we don’t stop there. Cacoeli takes their analysis to the next level by running an internal demographic report.

Determining the average and and occupation of the population is critical to determining what real estate asset is suitable for a given location. Cacoeli approaches projects by asking key questions, such as:

 

Has the population increased over the past 5 years?

How old is the population?

What is the average number of individuals in a household?

What is their daily occupation?

What is the average household income?

 

Our job as asset managers is to rigorously assess and execute using the most important and up-to-date information on any given location of interest for our investors.

 

Through our internal assessment and reporting, Cacoeli is capable of researching and executing projects that directly meet the demand of a particular location. This tool has proven to be effective in achieving higher-than-average returns on our real estate projects for nearly two decades.

 

Watch our CEO, Jedidiah, dive into the important role of location in any of Cacoeli’s real estate investment projects:

https://youtu.be/8EAAEEWQj5o

New, Rare, Value-Add Investment Opportunity

Introducing Cacoeli’s new, rare, value-add real estate investment project: Holborn-Chicopee!

Our new rental asset in the Kitchener-Cambridge-Waterloo region is another short-term real estate investment opportunity that is planned to generate a net IRR of 12-22% in 3 years. Nestled in the booming KWC-region of Ontario, this asset has a number of rare “pockets of value” which, when properly addressed, present material increases in the assets’ overall value. The “pockets of value” include: purchase price, price per unit, cap rate, and rental rates. By maximizing ancillary revenues and optimizing the assets’ use – Cacoeli is confident that they can enhance both operational and financial performance of the asset.

With nearly two decades of experience in repositioning multi-family rental operations, the Cacoeli team knows to how to maximize their projects best and highest use. Our creative and hands-on approach is our key to success in this increasingly competitive and highly desirable asset class, allowing us to own, operate and manage more than 1.2 million sq/ft of GTA real estate, including 250 multi-residential rental units in Ontario. Successful repositioning projects with higher-than-average returns for our investors make up the majority of our track record.

Accredited, Institutional & Family Office investors looking to diversify their investment portfolios – get involved in this new, rare, value-add investment opportunity!

Visit our website www.cacoeli.com, or follow us on your favourite social media platforms https://linktr.ee/cacoeli.

In the Works: OPA & ZBA Application in the City of Whitby

Cacoeli is thrilled to announce our most recent development application!

This proposal consists of an 11-storey mid-rise building, comprising 120-units and 2-levels of underground parking in the City of Whitby. Our OPA & ZBA application for 132-152 Brock Street North will provide the city a mixture of market and affordable housing, in addition to a ground-level daycare facility.

A big thanks to our development partner, Terra Bona Developments Ltd., and our architects at the IBI Group for working with us on this complex proposal. Together, our value-aligned partnership worked tirelessly to ensure that our project would offer viable, alternative, rental housing options in the City of Whitby.

Stay tuned for progress updates on this application!

To learn more about our development partner, visit: www.terrabonacanada.com

To learn more about our architects, visit: www.ibigroup.com

JUST ACQUIRED: 890 Bloor Street West

Cacoeli is pleased to announce its latest acquisition for the Cacoeli Real Estate Opportunity LP located at the heart of downtown Toronto, in the Bloordale neighbourhood.

Positioned on the north-east corner of Bloor Street West & Ossington Avenue, this project is in close proximity to critical infrastructure, such as public transportation, parking, grocery stores, schools and other key amenities and services.

This is another elevating acquisition for our investors. The attractive location and nature of this acquisition provides limitless opportunity and value creation.

Based in Toronto, the Cacoeli group is a vertically integrated real estate investment firm and comprises capital raising, investment management and property management entities. Since its formal inception in 2014, Cacoeli has been steadily growing its assets under management, focusing on opportunistic return investments.

Cacoeli’s CEO Jedidiah Liu Inspires a New Generation of Professionals at CAASA’s Virtual Career Conference

Bright and curious minds got together at CAASA’s (Canadian Association of Alternative Strategies & Assets) Virtual Career Conference! Cacoeli was honoured to be both a sponsor and speaker in this important space for professionals, newcomers and those exploring career options in alternative assets and strategies. 

Staying connected and sharing information is important to us.

Our 1-hour session, filled with valuable insights and personal experiences, shed light on how the company has evolved. With backgrounds in accounting, finance, urban planning and development, we expressed the interdisciplinary and growing nature of our work, and our commitment to balancing profits and purpose in our projects. 

Cacoeli is not only an avenue to investing, it is a path to advancing your career in investing. 

Get in touch with us to learn about what career options we have available to you.

Visit www.cacoeli.com/contact/ and send us a brief introductory email along with your CV!

The Niche Synthesis that made Cacoeli Resilient in a Time of Uncertainty

Kasey Wong, Cacoeli’s COO, reveals the niche synthesis that has made Cacoeli resilient in a time of uncertainty in this Well-Off podcast episode hosted by Georges El Masri.

“Ontario is a landscape of vast opportunity.”

Kasey explains that with some digging, the company has managed to grow its assets despite the pandemic and rising land prices, through a combination of high-level involvement in the day-to-day operations, a thorough analysis of numbers, and a social purpose.

Listen here:

https://welloffpodcast.ca/e90-condo-conversions-analyzing-200m-portfolio-and-geothermal-heating-with-kasey-wong

Tips from Cacoeli’s Operations Manager:

  1. Maintain healthy dialogue and communication with tenants
  2. Don’t over renovate
  3. Always maintain your boiler systems – do not overuse
  4. Get your fire alarms checked before & after winter
  5. Run a break-even analysis for geothermal heating projects
  6. Initiate proactivity in tenant issues
  7. Identify your turn-around rates, demographic and market changes

Kasey’s strategy to success:

  1. Think outside of Toronto
  2. Demographic research
  3. Short-term projects
  4. Full ownership
  5. Small, simple buildings
  6. Minimal, resilient renovations
  7. Inspect and document everything, often
  8. Visit and speak often

Do what we do – get involved, learn more on this episode of the Well-Off podcast.

Thanks Georges El Masri for having us!

How Can You Make Money Investing In Real Estate?

Cacoeli CEO Jedidiah Liu and COO Kasey Wong share lessons learned starting from a single property and growing a portfolio of over 300+ multi-family units throughout Ontario.

‘The key to success is fluidity and flexibility, geographically and financially’ says Kasey Wong.

Watch the lively discussion on The Everyday Investor Show with Rav Toor speaking with Cacoeli’s Founders and Executives on their personal experience and providing you with strategies for success. Also learn how easy it is to get involved and both reap profits and be socially impactful.

Yes, you can invest in institutional grade real estate!

Watch the interview here: https://www.youtube.com/watch?v=t5VEXJfYgPo

New Affordable, Purpose-Built, Multi-Family Rental Housing Project

Cacoeli is thrilled to announce that this multi-family, affordable housing, purpose-built rental development project has been refinanced by Vancity Community Investment Bank (VCIB) – a prominent financing partner in projects with social impact. This project will provide alternative housing options in the growing city of Vaughan. Through our value-aligned partnerships with Terra Bona Development, accredited non-profit organizations, and VCIB, we aim to develop inclusive, affordable, and accessible housing. 

This housing development project aims to provide additional affordable housing options. As a progressive investor and provider of residential rental housing, we have the responsibility to balance both business and social responsibilities to meet our investors’ objectives, while at the same time addressing the urgently needed demand for affordable housing. Cacoeli is proud to spearhead, together with our development partners and with the support of VCIB, this important project in the City of Vaughan. 

You can read more about VCIB’s loan, featuring Cacoeli here:

https://vancitycommunityinvestmentbank.ca/loan_profile/cacoeli/

To learn more about VCIB and other community initiatives they are involved in, visit:

www.vancitycommunityinvestmentbank.ca

To learn about our development partner, Terra Bona Development, visit:

www.terrabona.ca

Take-Aways from CAASA’s “What’s Around the Four Corners?” Roundtable

Cacoeli’s CEO Jedidiah Liu joined other real estate experts at the Canadian Association of Alternative Strategies and Assets’ (CAASA) Roundtable on Tuesday, October 26, 2021. Institutional real estate asset managers, student housing specialists, and private equity real estate professionals came together to discuss “What’s Around the Four Corners?” 
 
Mediated by Martha Tredgett and hosted by James Burron, Jedidiah along with Sanjil Shah of Alignvest Student Housing, Shael Soberano of Konfidis, and KC Dayan of Clifton Blake Asset Management explored the future of the real estate industry as the world returns to pre-pandemic conditions. 
 
If you were unable to listen in on the discussion, here’s a brief excerpt of the topics discussed and key take-aways. 
 

What is the new normal?

 
  • Multi-family assets being a safer and more secure investment vehicle, highly desirable asset class 
  • An increase in pricing of assets in primary markets, causing more individuals to look into secondary markets
  • Affordable housing and profitable returns don’t have to be mutually exclusive and there is more emphasis from the development and investing community on the coexistence of affordable housing, investing, and profits 
  • Younger populations, particularly students, are seeking quality as they are increasingly focused on health, hygiene and safety 
  • A return to downtown is taking place with an uptake in commercial leases
  • Residential leases are achieving higher rates than last year
 
What Can We Expect?
 
  • The significant increase in immigration has implications on the supply and demand fundamentals
  • Immigration as a federally regulated policy forces us to take a critical lens to who (provincial and local governments) regulates zoning and approval process and how these are to respond to uptakes in demand as a result of immigration
  • Key demographic changes impacting real estate include: an aging population, down-sizing, moving into urban centres with closer proximity to essential services and millennial cohorts with different lifestyle preferences, such as working from home 
 
What key challenges is your industry facing?
 
  • Striking a delicate balance between affordable housing allocation and profits within a given project to create the all important coexistence among these factors in real estate development and investing 
  • One of the biggest hurdles to development are the development charges 
 
In what ways is tech impacting the industry?
 
  • Technology plays an important role in accessing scale and efficiency in unlocking a certain asset class
  • Provides data that helps create a better understanding/estimate of market rental rates and informs important issues to developers and investors
  • Higher demand for increased/reliable internet bandwidth is causing developers to create a more technology inclusive tenant experience
  • New portals are coming into existence to engage partners, tenants, and other related actors virtually 
 
What is the role of ESG in this industry?
 
  • Asset managers are changing their approach in purchasing older building with deeper investigation into building selection and potential to be retrofit to incorporate new, improved, and higher quality green technologies into the building 
  • Overall, there is a heavy emphasis on the E (environmental) aspects, but the industry needs to put more effort into the S (social) and G (governance) aspects 
  • ESG and affordable housing are hot topics in the industry and are expected to become more popular in the future 
 
Interested in the above and would like to hear more? You can visit the webinar replay by clicking the link below: 
 
Real Estate: What’s around the Four Corners – (caasa.ca)