Cold Creek by Port Picton Homes
Cold Creek · 1-Block (8 Units) Portfolio (@ $430,000/Unit)
Financing: Traditional Commercial (80% LTV · 40-Yr Amort)
Financing:
Portfolio:
Cost/Unit:
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Cold Creek 3-Storey Townhomes - Exterior Elevation
Cold Creek by Port Picton Homes
Port Picton Homes Official Builder
Picton · Prince Edward County, Ontario

3-Storey Townhomes with Garage
1-Block Entry Portfolio (8 Units · Traditional Commercial (80% LTV · 40-Yr Amort))

A premier purpose-built rental acquisition featuring 80% LTV financing, extended 40-year amortization, 100% full market rental freedom ($2,200 2-Bed / $2,400 3-Bed), $0 CMHC fees, and strong Year 1 cash-flow yield (+$37,654/yr).

Acquisition Value
$3,440,000
8 Units @ $430,000 Turnkey
20% Equity Down
$688,000
80% LTV (40-Yr Amort)
5-Yr Levered Hold IRR
15.2%
12.7% Net Exit IRR
DSCR (w/ TIEG)
1.261x
+$36,049/yr Net CF
Cold Creek · Master Community Overview

Cold Creek Phase 1 Subdivision & Master Plan

A visionary master-planned residential enclave in Picton combining detached homes, freehold street towns, and the 86 3-storey rental portfolio
Phase 1 Shovel-Ready
Cold Creek Phase 1 Master Plan Aerial View
Cold Creek Phase 1 Aerial Master Plan · Picton, PEC
Fully serviced civil infrastructure, nature trails & connected streetscapes
86 3-Storey Townhomes
11 Blocks

The core multi-residential rental asset: 10 × 8-unit blocks + 1 × 6-unit block (86 units total). Contemporary 3-storey 2-bedroom and 3-bedroom layouts with private attached garages, built for maximum operational efficiency and long-term asset appreciation.

Single-Family & 2-Storey Freehold Enclave
High-End Comps

Executive detached homes and 2-storey street townhomes anchor the community's upscale aesthetic, driving high neighbourhood pride-of-ownership and supporting robust long-term asset appreciation.

32-Unit Stacked Townhome Parcel
Attainable Housing

High-density entry-level multi-family parcel adding diverse price points and vibrant demographic balance across the master community.

Parks, Millennium Trail & Downtown Integration
Prime Location

Integrated municipal parkland and direct connections to the Millennium Trail network. Minutes to Picton Main Street retail, dining, and Prince Edward County Memorial Hospital.

Rental Townhomes
86 Units
11 Purpose-Built Blocks
Civil Infrastructure
Shovel-Ready
Fully Serviced Roads & Utilities
Location / Municipality
Picton, PEC
Walkable to Core Amenities
Master Builder
Port Picton Homes
Tarion Registered Builder
CONFIDENTIAL MEMORANDUM · PORT PICTON HOMES
PAGE 02 / 08
Cold Creek · 1-Block Strategy

Traditional Mortgage: 100% Market Freedom

Commercial financing with extended 40-year amortization, zero affordability restrictions, $0 CMHC fees, and massive cash-flow yield
80% LTV · 40-Yr Amort
100% Market Freedom
$0 Rent Covenants

Zero affordability covenants required. Every single unit rents at 100% full market rent ($2,400 for 3-Bed / $2,200 for 2-Bed) with complete leasing flexibility.

→ 100% market rent on all 8 units
40-Yr Extended Amort
Low Debt Svc

Extended 40-year commercial amortization optimizes annual debt service to $138,020/yr, yielding an exceptional 1.261x DSCR.

→ +$36,049/yr Year 1 cash flow
100% HST Rebates
$447,200 Saved

Qualifies for 100% full elimination of the 13% Harmonized Sales Tax via Federal Purpose-Built Rental Housing (PBRH 5%) and Ontario NRRPR (8%) rebates, eliminating upfront outlays.

→ $0 Net HST Payable ✓
10-Yr TIEG Tax Grant
$80K Rebated

County Tax Increment Equivalent Grant (TIEG) rebated 100% of municipal property tax for Years 1–10, generating direct NOI savings and boosting DSCR above standard covenants.

→ +$80,000 cumulative savings
Traditional Commercial Financing — 40-Year Term (80% LTV)
$0 CMHC Fees · Complete Freedom · 1.26x DSCR Safety
Climate / Energy 50 Pts
≥70% Reduction vs. NBC 2020
All-electric cold-climate heat pumps, continuous envelope R-30+, triple-pane low-E glazing, zero gas.
Affordability 0 Covenants
100% Market Rents
0 restricted units. Complete freedom to optimize rents and tenancy without municipal/federal covenant filings.
Total Score Optimal
High Cash-Flow Freedom ✓
Unlocks +$36,049/yr Day 1 net cash flow with strong 1.26x DSCR debt coverage.
1. High-Performance Envelope
R-30+ & ACH ≤ 1.5
Continuous insulation, triple-pane glass, zero on-site gas. 100% Carbon Tax immunity.
2. Drastically Lower Utilities
~$130/mo Savings
Tenants save ~$1,560/yr on heating/cooling vs. gas stock. Eliminates tenant bill shock.
3. Sticky Tenant Retention
3–5 Yr Tenancies
Draft-free comfort and acoustic soundproofing create high renewal rates and near-zero churn.
4. Maximized Effective NOI
1.261x DSCR ✓
Avoiding turnover saves $3,500/turn. Asset commands premium cap-rate compression.
CONFIDENTIAL MEMORANDUM · PORT PICTON HOMES
PAGE 03 / 08
Cold Creek · 1-Block Strategy

Acquisition Budget & Closing Capital Stack

Complete line-by-line accounting of purchase price, funded debt financing, and closing expenditures
8 Units · Freehold Block
Sources & Loan Sizing (1-Block / 8 Units · Traditional) Amount (CAD)
Turnkey All-In Acquisition (8 units @ $430,000 — Level 3 Envelope, Heat Pumps & Appliances) $3,440,000
Total Net Portfolio Acquisition Value $3,440,000
Commercial Mortgage Base Loan (80% LTV) −$2,752,000
Total Funded Loan Amount (Principal Balance) $2,752,000
Mortgage Term & Amortization 5-Yr Fixed · 40-Yr Amort
Interest Rate Assumption 4.00% Fixed
Annual Debt Service (P&I Payments) $138,020 / yr
Investor Capital Uses & Closing Outlays Amount (CAD)
Equity Down Payment (20% of Net Acquisition) $688,000
Ontario Land Transfer Tax (LTT) $65,275
$51,600
Appraisal & Physical Inspection ($150/u + base) $3,700
Phase 1 Environmental Site Assessment (ESA) $3,500
Mortgage Broker Fee (Institutional Placement Tier) $27,520
Net HST Payable (13% Gross Less 100% Rebates) $0 ($447,200 Rebated ✓)
Total Capital Required Out-of-Pocket $839,595
Down Payment ($688,000 / 20%)
Institutional commercial financing controlling $3,440,000 in brand-new high-efficiency freehold townhomes.
40-Year Amortization
Annual debt service is optimized to $138,020/yr, delivering +$36,049/yr Day 1 cash-flow yield.
$447,200 Full HST Exemption
Qualifies for 100% combined Federal PBRH and Ontario NRRPR rebates, fully eliminating all net HST liabilities on acquisition.
Acquisition Value
$3,440,000
8 Units @ $430,000 Turnkey
Equity Down (20%)
$688,000
80% LTV (40-Yr Amort)
Total Cash In
$839,595
CAD $104,949 / unit
Funded Debt Balance
$2,752,000
40-Yr Amortization @ 4.0%
CONFIDENTIAL MEMORANDUM · PORT PICTON HOMES
PAGE 04 / 08
Cold Creek · 1-Block Strategy

Revenue Pro-Forma & Total Cost of Occupancy (TCO)

Underwritten market rents, zero-utility exposure, and side-by-side tenant affordability advantage
TIEG Rebate: $8,000/yr
1-Block Revenue & Operating Stack (8 Units · 100% Market) Annual (CAD)
4 × 3-Bedroom Townhomes (with Garage) @ $2,400/mo $115,200
4 × 2-Bedroom Townhomes (with Garage) @ $2,200/mo $105,600
Pet Fee Ancillary Revenue (3 units @ $35/mo) $1,260
Gross Potential Revenue (GPI) $222,060
Vacancy & Credit Loss Allowance (7.5%) −$16,654
Effective Gross Income (EGI) $205,406
Operating Expenses (Insurance, Repairs, Reserve, Mgmt @ 4.0%) −$31,336
Municipal Property Tax ($8,000/yr) — 100% Rebated by TIEG $0 (Rebated ✓)
Net Operating Income (NOI with TIEG) $174,069
Annual Debt Service (40-Yr Amort @ 4.0%) −$138,020
Net Cash Flow (Year 1) — 1.261x DSCR +$36,049 / yr
Total Cost of Occupancy (Rent + Utilities) Advantage

Cold Creek units feature $0 natural gas bills and cold-climate heat pumps (COP 3.0+). Tenants pay $15–$25/mo less total out-of-pocket living costs than older Prince Edward County gas rentals, driving rapid absorption and near-zero turnover.

Monthly Expense Component Older PEC Gas Rental Cold Creek All-Electric
2-Bedroom Contract Rent $2,275 $2,200
Enbridge Gas Fee & Heating +$135 $0 (No Gas ✓)
Hydro Electricity & Power +$115 +$110 (Heat Pump)
2-Bed Total Out-of-Pocket / Mo $2,525 $2,310 (−$215/mo ✓)
3-Bedroom Contract Rent $2,525 $2,400
Enbridge Gas Fee & Heating +$145 $0 (No Gas ✓)
Hydro Electricity & Power +$125 +$120 (Heat Pump)
3-Bed Total Out-of-Pocket / Mo $2,795 $2,520 (−$275/mo ✓)
Net Operating Income
$174,069 / yr
With 10-Yr TIEG Tax Grant
Debt Service Coverage
1.261x DSCR
Lender Safety: ≥ 1.20x Required
Net Cash Flow (Yr 1)
+$36,049 / yr
$3,004 / month net
Going-In Cap Rate
5.06%
Based on $3,440,000 Cost Base
CONFIDENTIAL MEMORANDUM · PORT PICTON HOMES
PAGE 05 / 08
Cold Creek · 1-Block Strategy

Asset Architecture, Floor Plans & Building Physics

Contemporary 3-storey architecture with attached private garages and advanced envelope engineering
R-30+ Envelope · All-Electric
8-Unit Top-Down Dollhouse Floor Plan
8-Unit Block · Top-Down Floor Plan · 4 × 2-Bedroom & 4 × 3-Bedroom Townhomes
Streetscape & Architecture
Pedestrian Streetscape
Landscaped entries, private driveways
Glass Railing Balconies
Private Balconies
Contemporary glass railings & terraces
Engineering Specification Standard Ontario Code Cold Creek High-Performance
Exterior Wall Insulation R-22 Batt (thermal bridging) R-30+ Continuous Foam
Roof & Attic R-Value R-50 Blown Cellulose R-60 Advanced Insulation
Glazing / Window Spec Double-Pane Clear (U=1.8) Triple-Pane Low-E Argon (U≤1.1)
Heating & Cooling System Atmospheric Gas Furnace + AC Cold-Climate Heat Pump (COP 3.0+)
Appliance Package Standard Builder White Goods $5,000 Energy Star Suite / Unit
Architecture / Format
3-Storey Towns
Attached Garages
Parking Capacity
16 Stalls Total
8 Garages + 8 Driveways
Natural Gas Exposure
$0 / Year
100% Carbon Tax Free
Unit Mix Breakdown
4 × 3B · 4 × 2B
Freehold Block Structure
CONFIDENTIAL MEMORANDUM · PORT PICTON HOMES
PAGE 06 / 08
Cold Creek · 1-Block Strategy

5-Year Wealth Creation & Financial Waterfall

Multi-generational compound returns powered by mortgage principal paydown and asset appreciation
15.2% Levered Hold IRR · 12.7% Exit IRR
Projection Year Gross Revenue (2.5% gr) Effective Gross Income Opex (w/ TIEG Grant) NOI (with TIEG) Debt Service Net Cash Flow Principal Paid Portfolio Value (3% gr) Total Accumulated Equity
Cash Flow Yield
Liquid
+234,099
5-year cumulative net operating cash distributions deposited into bank.
Mortgage Paydown
Amortization
+168,486
Direct principal reduction paid down 100% by tenant rental income.
Asset Appreciation
3% Growth
+541,532
Conservative 3.0% compound annual growth on freehold asset.
5-Yr Levered Returns
Dual IRR
15.2% Hold (1.94x)
12.7% Exit (1.75x)
Hold IRR reflects ending equity; Exit IRR deducts 4% disposition fee.
CONFIDENTIAL MEMORANDUM · PORT PICTON HOMES
PAGE 07 / 08
Cold Creek · 1-Block Strategy

Master Builder Partnership & Turnkey Roadmap

Seamless execution backed by Port Picton Homes craftsmanship and RE/MAX Quinte Ltd. Brokerage
Turnkey Delivery
1. Block Reservation
Month 1

Execute Purchase Agreement for 1-Block Portfolio (8 Units). Deposit $50,000 refundable earnest funds and finalize commercial lender financing package.

✓ Commercial loan commitment
2. Bank Mortgage Approval
Months 2–3

Secure institutional mortgage approval for 80% LTV, 40-year amortization. Lender funds construction draw, and foundation pours commence.

✓ 80% LTV mortgage commitment
3. Envelope Build
Months 4–9

Port Picton Homes executes precision framing, R-30+ foam envelope, triple-pane glazing, heat pump rough-ins, and Energy Star appliance suite installation.

✓ Tarion 7-year builder warranty
4. Turnkey Delivery
Months 10–12

Municipal occupancy permits issued. Brokerage manages tenant pre-leasing and move-ins. Day 1 net operating cash flow distributions commence.

✓ 100% occupied turnkey asset
Port Picton Homes
Port Picton Homes · RE/MAX Quinte Ltd. Brokerage
Master Builder Offering & Exclusive Institutional Investor Representation · Picton, Ontario
Elyse Cleave
Sales Representative · RE/MAX Quinte Ltd. Brokerage
elyse@remaxquinte.com · (613) 503-2128
Inquire Now
CONFIDENTIAL MEMORANDUM · PORT PICTON HOMES
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