The Five Points Development Project

Homes with a Purpose


Company: TRG (The Five Points) Project Ltd.Industry: Real Estate DevelopmentHeadquarters: North Vancouver, BCFounder: Aleem AhamedFounded: 2015

Message from the Developer


“Roughly 40,000 square feet and a budget over $20 Million.”

The Opportunity

In 2015, BlueArck was approached to invest and manage a real estate development project located at 711 W. 14th Street in North Vancouver, BC. The property owners required investment and management to complete a four-storey commercial/residential mixed use development of roughly 40,000 square feet and a budget over $20 Million.

The site was originally zoned for commercial use and was underdeveloped when the transaction originated, generating a near-breakeven return for the property owners.

BlueArck’s principals were challenged with rezoning and developing the project from cradle to grave.

The Five Points Development Project

Bringing Purpose to Life


“The investment thesis called for appropriate-sized units (44 residential, 6 CRU)”

The Process

Upon completion of an initial design, BlueArck partnered with the City of North Vancouver to rezone the property to allow for increased density and multi-family residential as well as a commercial component with two levels of underground parking.

With rezoning complete, the team partnered with Rennie Marketing to design and execute a full marketing program that catered to new homebuyers that had been priced out of the Vancouver market, focusing on millennials who had been raised on the North Shore of Vancouver, but had been having difficulty entering a market wrought with escalating prices and targeting a buyer focused on the higher end.

The investment thesis called for appropriate-sized units (44 residential, 6 CRU) that had selective features that would create value for a long-term homeowner and a fit and finish that would separate the project from its competition.

Construction financing was arranged by BlueArck to ensure the project would be completed with as efficient a capital structure as possible.

In order to bring a high-quality product to market and build on the already strong reputation of its principals, BlueArck partnered with Marcon Construction as a general contractor. BlueArck has also been an equity investor in other Marcon development projects. Marcon has a terrific reputation in the market and has had an ongoing relationship with other projects in which BlueArck’s principals have participated.

44

Residential Units Sold

2

Weeks to Sellout

46

Thousand SF Developed

20

Million Dollar Budget

“The project was 90% sold in the first weekend and fully sold out within the first 2 weeks after launch.”

Results

After running a successful marketing campaign, significant interest mounted in the project and over 2,500 pre-registrants had applied as interested buyers for just 44 units within the first 2 weeks of the marketing period (pre-launch). As a result, the project was 90% sold in the first weekend and fully sold out within the first 2 weeks after launch.

While construction was challenged by difficult sub-surface soil conditions, the construction and consultant teams worked with BlueArck to create solutions to overcome those issues.

Returns (IRR) generated by the project were expected well in excess of 20%.