PORT PICTON HOMES · COLD CREEK PHASE 1

Institutional Purpose-Built Rental Offering

The Poplar · 8-Unit Block
CMHC MLI Select (95% LTV · 50-Yr Amort)

Master-planned 8-unit freehold townhome block in Picton, Prince Edward County. 95% CMHC loan-to-value, 50-year amortization, zero natural gas liability, and 10-year municipal TIEG tax rebates.

8-Unit CMHC Underwriting Highlights

Acquisition Value

$3,556,800

8 Townhomes ($444.6K avg)

Equity Down (5%)

$177,840

95% LTV (50-Yr Amort)

5-Yr Levered Hold IRR

29.5%

24.4% Net Exit IRR (3.24x EM)

Debt Coverage (DSCR)

1.167x

+$24,671/yr Net Cash Flow

1. Severe Rental Undersupply

Market Deficit

Prince Edward County suffers from an extreme lack of purpose-built family rentals. Professional workforce families, hospital staff, and municipal employees face < 1.5% vacancy with virtually no modern 3-bedroom options.

→ Immediate tenant absorption upon completion

2. 10-Year TIEG Tax Grant

Municipal Support

Prince Edward County's Community Improvement Plan provides a 100% Tax Increment Equivalent Grant (TIEG) rebating municipal property taxes (~$8,000/yr across the block) for 10 consecutive years.

→ Adds +$80,000 cumulative net cash flow over 10 yrs

3. Zero Gas / All-Electric Asset

Operational Advantage

Equipped with cold-climate heat pumps (COP 3.0+) and 100% sub-metered power. Zero gas infrastructure means zero carbon tax escalations and ~$65/mo lower tenant living costs vs legacy rentals.

→ Zero utility liabilities to the landlord

Regional Vacancy Rate

< 1.5%

Severe Rental Deficit

10-Yr TIEG Tax Savings

$80,000

$8,000/yr Tax Rebate

Gas Utility Liability

$0 / Year

All-Electric Heat Pumps

Master Builder Warranty

Tarion 7-Yr

Port Picton Craftsmanship

CMHC MLI Select Scoring Category	Points	Project Achievement
1. Energy Efficiency (Cold-climate heat pumps, all-electric, no gas)	50	50 Pts Achieved ✓
2. Affordability Commitment (1 of 8 units @ $1,500/mo ≤ CMHC threshold)	50	50 Pts Achieved ✓
Total MLI Select Score (Level 3 Maximum Tier: ≥ 100 Pts)	100	Level 3 Qualified ✓

95% Loan-to-Value (5% Down)

Capital Efficiency

Requires only $177,840 in equity down to acquire the entire $3,556,800 block (vs $684,000 for conventional 20% down). An investor saves $513,000 in upfront equity.

50-Year Ultra-Long Amortization

Cash Flow Surge

50-year amortization fixes annual debt service to $147,601/yr ($12,300/mo), delivering a 1.167x DSCR cushion and +$24,671/yr net cash flow.

Equity Down Required

$177,840

5.0% on $3,556,800 Block

Annual Debt Service

$147,601 / yr

$12,300 / month (50-Yr @ 3.45%)

Year 1 Net Cash Flow

+$24,671 / yr

+$2,056 / month net distributions

Capital Stack Component	Amount (CAD)	% Total
Turnkey Acquisition (2 End @ $452.4K + 6 Inside @ $442K (incl. 4% CMHC Upgrade))	$3,556,800	100.0%
Base CMHC Commercial Loan (95.0% LTV)	$3,514,118	95.0%
CMHC MLI Select Insurance Premium (4.0% Capitalized)	+$135,158	4.0%
Total Funded Commercial Debt	$3,514,118	98.8%
Financing Terms	5-Yr Fixed · 50-Yr Amort	3.45% Rate
Annual Debt Service	−$147,601 / yr	$12,300/mo
Equity Down Payment (5.0%)	$177,840	5.0%

Closing & Transaction Outlays	Estimated (CAD)
Ontario Land Transfer Tax (LTT · Block Allocation)	$42,936
Institutional Commercial Legal Fees & Title Insurance	$12,000
Commercial Multi-Family Appraisal Fee	$3,500
Phase 1 Environmental Site Assessment (ESA)	$2,500
Commercial Mortgage Brokerage Placement Fee (1.0%)	$35,141
CMHC MLI Select Application Fee ($300/unit + tax)	$10,320
100% HST Rebates (Federal PBRH + Ontario NRRPR)	$0 ($462,384 Rebated ✓)
Total Out-of-Pocket Capital Required to Close	$284,237

Acquisition Value

$3,556,800

8 Townhomes

Equity Down (5%)

$177,840

95% LTV (50-Yr Amort)

Total Cash In

$284,237

All Closing Outlays Included

Funded Debt Balance

$3,514,118

50-Yr Amortization @ 3.45%

8-Unit Revenue & Operating Stack	Annual (CAD)
7 × 3-Bed Market Poplars (1,200 sq.ft. · Garage) @ $2,350/mo	$197,400
1 × 3-Bed Affordable Poplar (CMHC MLI Select Allocation) @ $1,500/mo	$18,000
Gross Potential Income (GPI)	$215,400
Vacancy & Credit Loss Allowance (7.5%)	−$16,155
Effective Gross Income (EGI)	$199,245
Fixed Operating Expenses (Insurance $11.2K, Repairs $6.4K, Reserve $2.4K)	−$20,000
Professional Multi-Residential Property Management (3.5%)	−$6,974
Municipal Property Taxes ($8,000/yr) — 100% Rebated by TIEG	$0 (Rebated ✓)
Net Operating Income (NOI with TIEG)	$172,271
Annual Debt Service (50-Yr Amort @ 3.45%)	−$147,601
Net Cash Flow (Year 1) — 1.167x DSCR	+$24,671 / yr

Total Cost of Occupancy (TCO) Tenant Advantage

The Poplar features $0 natural gas bills. Tenants save ~$65/mo in out-of-pocket living costs compared to older gas-heated PEC rentals, ensuring near-zero turnover and fast absorption.

Living Expense Component	Older Gas Rental	The Poplar All-Electric
3-Bedroom Contract Rent	$2,250	$2,350
Enbridge Gas & Heating	+$145	$0 (No Gas ✓)
Hydro Electricity	+$130	+$110 (Heat Pump)
Total Out-of-Pocket / Mo	$2,525	$2,460 (−$65/mo ✓)

100% Sub-Metered Electricity

Each tenant pays 100% of their hydro. Landlord has zero utility exposures across all 8 homes.

Net Operating Income

$172,271 / yr

With 10-Yr TIEG Tax Grant

Debt Service Coverage

1.167x DSCR

CMHC Safety: ≥ 1.10x Required

Net Cash Flow (Yr 1)

+$24,671 / yr

$2,056 / month net

Going-In Cap Rate

4.84%

Based on $3,556,800 Cost Base

The Poplar · 3D Isometric Cutaway (Ground Living & Garage + 2nd Floor 3-Bed Suite)

Specification	Typical Resale	The Poplar Spec
Heating & Cooling	Gas Furnace + AC	Cold-Climate Heat Pump (COP 3.0+)
Natural Gas Connection	Enbridge Gas (~$145/mo)	$0 — No Gas Line Required
Ownership Structure	Condo / Leasehold	100% Freehold Title (8-Unit Block)
Parking Capacity	Surface Stall / Street	8 Private Garages + 8 Driveways (16 Stalls)
Lower Level	Slab-on-Grade	8 Full Basements (Future Suite Potential)
Exterior Envelope	R-22 Batt / Double-Pane	R-22 Batt / Double-Pane Low-E
Builder Warranty	As-Is Resale	Tarion 7-Year New Home Warranty

Total Block Living Area

9,600 Sq Ft

8 × 1,200 sq.ft. + Basements

Total Parking Capacity

16 Stalls

8 Garages + 8 Driveways

Natural Gas Exposure

$0 / Year

100% Carbon Tax Free

Block Unit Mix

8 × 3-Bed / 2.5-Bath

2 End @ $452.4K + 6 Inside @ $442K ($3,556,800)

Projection Year	Gross Revenue (2.5% gr)	Effective Gross Income	Opex (w/ TIEG Grant)	NOI (with TIEG)	Debt Service	Net Cash Flow	Principal Paid	Block Value (3% gr)	Total Accumulated Equity

Cash Flow Yield

Liquid

+$168,557

5-year cumulative net operating cash distributions deposited into bank.

Mortgage Paydown

Amortization

+$143,646

Direct principal reduction paid down 100% by tenant rental income.

Asset Appreciation

3% Growth

+$566,506

Conservative 3.0% compound annual growth on $3.42M freehold asset.

5-Yr Levered Returns

Dual IRR

29.5% Hold (3.24x)

24.4% Exit (2.66x)

Hold IRR reflects ending equity; Exit IRR deducts 4% disposition fee.

1. Block Reservation

Month 1

Execute Purchase Agreement for The Poplar 8-Unit Block. Deposit earnest funds and submit CMHC MLI Select Level 3 underwriting file.

✓ 95% LTV CMHC certificate

2. Construction Milestones

Months 2–4

Full block foundations poured and precision framing initiated under Tarion warranty supervision.

✓ Commercial draw scheduling

3. Precision Build

Months 5–9

Continuous building envelope, cold-climate heat pump installation, drywall, interior trim, cabinetry, and garage completions.

✓ Tarion 7-year builder warranty

4. Turnkey Delivery

Months 10–12

Occupancy certificates issued. Tenant pre-leasing completed by RE/MAX Quinte. 100% occupied turnkey handover.

✓ Day 1 net cash distributions

Port Picton Homes · Master Builder Legacy

Over 35 years of premier residential and multi-family development in Prince Edward County.

RE/MAX Quinte Ltd. Brokerage

Professional tenant procurement, vetting, lease execution, and ongoing asset management.

Total Block Price

$3,556,800

8 Townhome Block

Equity Down (5%)

$177,840

95% LTV Commercial Debt

Year 1 Net Cash Flow

+$24,671 / yr

+$2,056 / month net

5-Yr Levered Hold IRR

29.5%

3.24x Equity Multiple

The Poplar · 8-Unit Block
CMHC MLI Select (95% LTV · 50-Yr Amort)

Macro Drivers & Picton Rental Housing Shortage

CMHC MLI Select · 100-Point Level 3 Qualification

Capital Stack & Sources / Uses of Funds

8-Unit Revenue Pro-Forma & Operating Stack

Asset Architecture, Floor Plans & Specifications

5-Year Wealth Creation & Financial Waterfall

Master Builder Partnership & Turnkey Roadmap

The Poplar · 8-Unit BlockCMHC MLI Select (95% LTV · 50-Yr Amort)

Macro Drivers & Picton Rental Housing Shortage

CMHC MLI Select · 100-Point Level 3 Qualification

Capital Stack & Sources / Uses of Funds

8-Unit Revenue Pro-Forma & Operating Stack

Asset Architecture, Floor Plans & Specifications

5-Year Wealth Creation & Financial Waterfall

Master Builder Partnership & Turnkey Roadmap

The Poplar · 8-Unit Block
CMHC MLI Select (95% LTV · 50-Yr Amort)