PV, Mit & Jeff
This is a separate project from Development Fund I. Different site. Different capital stack. Fund I is closed. Wellington Towers is the next chapter of our build program, and it is open to accredited and existing FC investors only.
432 units is the plan. 350 units is the floor. The returns were modelled to hold at either number. That is how you underwrite a development, not how you hope for one.
25 Storey Purpose Built Rental · Southwestern Ontario
$100K Minimum · Accredited / Existing FC Investors
Targeted Return: 20% to 24% Annualized
Base case: 432 units. That is what the architect has drawn and what we are underwriting the deal around. Downside case: 350 units. That is what the numbers still work at if the final site plan approval comes in smaller than expected. We built the model so the returns hold in either scenario.
Three things stacked. CMHC aligned construction financing at below market rates. The development margin (build cost versus stabilized value) that normally stays inside a closely held partnership. And Southwestern Ontario workforce demand for rental at prices people can actually afford, which means absorption at stabilization moves fast.
We have a fixed exit in place. At stabilization, FCPRET will be the buyer, unless an institutional buyer or the open market is willing to pay a higher price. Waterfall returns capital first, then the promote. No interim cash flow. Term is up to 4 years plus two 1-year extensions.
Cash-Flowing Apartment Buildings · Southwestern Ontario
$10K Minimum · RRSP / TFSA / RESP / LIRA Eligible
Distributions: 7% Annualized, Paid Monthly
"We looked at REITs, GICs, and even buying a rental property ourselves. The math never worked. Foundation Capital was the first team that showed up and actually walked us through the numbers honestly. Two years in, the distributions hit the account every month like clockwork. No drama."
Watch your inbox this week. The full Wellington Towers investor deck, capital stack breakdown, and architect's renderings land next. Allocations are filling on a first come basis.
You are hearing this before the public does. Allocations for Wellington Towers open today for accredited and existing FC investors. If a 4-year development horizon is not your fit, the FCPRET closing window is 14 days away for monthly distributions instead.
To your success,
PV, Mit & Jeff
P.S. Fund I sold out in five weeks. Fund II is larger, on a brand new asset, and you are hearing it first. Reply to this email with "Fund II" and we will send the full deck plus a call link this week. Questions about the structure? Reply with the question, we answer them personally.
By the Numbers
