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In episode E140 of the REI Hot Seat, Andrew and Jacob dive into a Toronto mixed-use investment opportunity, highlighting why retail assets in prime locations are gaining favour with lenders.
They break down the property—a 1971-built building in Trinity Bellwoods with two levels of commercial space and three residential units—emphasizing the importance of securing a long-term AAA tenant to stabilize income.
With cap rates starting around 5% and projected to climb into the mid-sixes over several years, the property presents a strong long-term hold play for investors willing to structure deals creatively.
The discussion covers financing challenges, such as CMHC restrictions on mixed-use buildings, and potential solutions including vendor take-back mortgages and first-second structures to enhance leverage.
Jacob outlines rent rolls, vacancy considerations, and expense recovery strategies, underscoring how the retail component drives most of the value.
They also note opportunities to add value through tenant repositioning, parking income, and potential unit conversion. Ultimately, the episode makes the case that Toronto, long seen as “untouchable” for smaller investors, is now opening up thanks to changing market dynamics, creating a rare chance to secure prime assets in a world-class city.
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Jacob Campagnaro Instagram: https://www.instagram.com/jacob_campagnaro/
David Hulshof Instagram: https://www.instagram.com/davehulshof.realestate/
E141 Generational Wealth Starts With Assets Like This
1:17 – Why Toronto Remains Expensive
5:00 – Filling Commercial Tenancy
6:20 – Retail Stability & Cap Rates
12:14 – Financing Limits & CMHC Restrictions
18:09 – Asking Price & Bank Appetite
19:05 – Vendor Take-Back & Deal Structuring
24:47 – Long-Term Hold Strategy
Disclaimer: This episode, as with every episode of this show, should NOT be considered as advice. Investment advice is NEVER given on this show. Always consult a competent investment advisor before making an investment decision.
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Andrew Hines is a seasoned real estate investor, business-builder, educator, and podcast host, well-recognized for his extensive experience in the field. Andrew graduated with an HBA from the Richard Ivey School of Business in 2008 and spent three years teaching introductory business at Western University as a Lecturer. He has been investing in real estate since 2011 and completing value-add projects since 2015, primarily in the luxury student rental space. Andrew started a project management company for building out new-construction townhomes in 2016 and has since built over 50 residential units throughout Southwestern Ontario. Andrew is an advocate for treating real estate investing like a business and uses his experience in his educational endeavors, coaching numerous investors on strategies to achieve financial independence and scale their portfolios effectively.
His podcast, "The Andrew Hines Real Estate Investing Podcast," serves as a platform for sharing insights, strategies, and success stories, connecting a community of like-minded individuals passionate about real estate investing. With a background that blends practical investing experience and investor-focused work, Andrew has become a pivotal figure in the Canadian real estate investing community.
