PROJECT 301 REGENT AVE FULL CASE STUDY
INTRODUCTION
Project 301 Regent Avenue is one of Arete’s own acquisitions — a relatively clean, stable apartment building that still held significant untapped potential. The property came to us off market through a realtor who understood both our criteria and our ability to solve regulatory and operational challenges that other buyers might hesitate to take on.
On paper, the building was in decent condition but dated. There were questions around rent regulation and some uncertainty about compliance, but overall, it was a solid structure in a strong area with an opportunity to reposition, modernize, and quickly recycle capital.
PROBLEM
The building’s primary issues were twofold. First, the interiors were tired. Suites needed renovation to support stronger rents and to align with the level of housing we want associated with Arete’s name. Second, there were some rent regulation concerns. It was not immediately clear whether all rents were fully compliant, and that created risk for both the existing owner and any purchaser.
For us to move forward, we needed to be confident that any compliance issues could be resolved and that the building had a clear path to higher performance and a near-term refinance.
DISCOVERY
We began by assessing the physical condition of the building and confirming that the underlying structure justified investment. At the same time, we reviewed the rent-control situation. Through that process, we identified some issues that needed to be corrected. Rather than using this as leverage against the seller, we took a collaborative approach, educating the vendor on how to resolve the problems so that, regardless of whether we purchased, he would have a compliant asset.
Once those items were addressed, we confirmed that the building was a good candidate for our value-add model: acquire, renovate, increase rents, apply for above-guideline rent increases where applicable, stabilize, and refinance.
Strategy
Our strategy for 301 Regent was straightforward and aggressive. We would acquire the building, vacate units for renovation as quickly as possible, modernize the suites, bring rents up to market through lawful increases, and stabilize occupancy on a tight timeline. Once complete, we would refinance the property at its new, higher value, with the goal of returning 100 percent of our invested capital.
The project was designed to move fast. The building’s condition, location, and size made it ideal for a rapid repositioning.
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After closing, we moved immediately into execution. We secured vacant possession of units designated for renovation, completed the interior upgrades, and began leasing at the new rent levels. Because demand in the area was strong and the product we brought to market was well-finished, units leased quickly.
Within four months, the building reached full stabilization, with 100 percent occupancy at the improved rent levels. Shortly thereafter, we submitted our refinance application. From acquisition to completed refinance, the entire project took approximately six months.
The refinance returned 100 percent of our original invested capital. We retained ownership of the asset with none of our own money left in the building.
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301 Regent is now a fully renovated, stabilized, cash-flowing asset in Transcona, held in our portfolio with strong upside and appreciation potential. The building operates with compliant rents, modern suites, and a tenant profile consistent with our long-term objectives.
From an investment standpoint, the project delivered exactly what we targeted: quick execution, full capital recovery, and a high-quality asset positioned for long-term hold.
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Project 301 Regent Avenue is a clear example of how Arete deploys its own capital: buying well, moving quickly, solving regulatory issues collaboratively, and creating value through focused renovation and disciplined execution.
Purchase: $837,000
Renovation: $220,000
As-complete value: $1,400,000
Timeline: ~7 months
While this opportunity seemed both exciting & “easy” so to speak as it was on the smaller side, it quickly became complex. The rents had not been updated in quite some time, they were very low considering the unit types and shape and thus, financing for the asking price was not viable & lastly, their asking price was simply too high.
I will outline this later, however, we had to walk away from this deal due to the vendor being firm on price and unwilling to reduce the price. After months they finally came down to our price and we were able to educate them on how to correct their registered rents (which they did successfully) & then take over ownership. Now we’re taking over a building without any discrepancies and due to its well maintained units, some vacancies and below market rent, we will be able to quickly renovate, re-rent and increase the value of this building leading to a successful BRRR (in our world, the best investment strategy).
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Acquire, renovate, stabilize, & refinance.
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Some project highlights that we’re excited about:
Going to be completely open concept 1 bedroom suites
5 parking stalls
We’re able to add our amenities,
Side yard - serving as greenspace
Open concept, clean, bright and spacious unit
Dishwashers and full serve kitchens
Storage lockers
Stone throw away from all necessary downtown transcona shopping
Bus stop right out of the front and a side yard serving as an outdoor space for tenants (being added)
To view our project details in more depth, see below 👇
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Longer term hold. We believe the appreciation in Transcona and on a building like this, with the combination of it being recently built, major thoroughfare, cornerlot, etc. we intend on holding this for the long term. We will achieve a perfect BRRR (buy, renovate, rent, refinance) and be able to pull out all of our original capital while forcing appreciation.