Executive Rental Market Briefing
Lepine Rental Comps vs. PPH Assets
Cross-comparison of achieved Eastern Ontario rents against PPH Taylor & Carter (Claramount Club) and PPH West Meadows Horizon 1 & 2.
Section 1
Macro & Demographic Context: PEC vs. Lepine Markets
$87,900
+22% vs Smiths Falls
PEC Avg Pre-Tax Income
$73,500
Strong Affordability
PEC After-Tax Income
$2.85
190 Units Achieved
Lepine Renfrew Avg $/SF
3–5 Yrs
+3% Annual Escalator
Lepine Lease Standard
| Market | Population | Avg Household Income | After-Tax Income | Comparable PPH Asset Focus |
|---|---|---|---|---|
| Prince Edward County (PPH) | 25,704 | $87,900 | $73,500 | Taylor & Carter (Claramount) & PPH WM H1/2 |
| Smiths Falls (Lepine) | 9,254 | $72,100 | $61,200 (median) | Lepine Taylor & Carter (No pool, gym/lounge) |
| Renfrew County (Lepine) | 106,365 | — | $80,700 | Lepine Renfrew (Full pool, gym, spa amenities) |
Income & Pricing Power Advantage
Prince Edward County boasts a 22% higher average income than Smiths Falls, supported by affluent downsizers and retirees. If Lepine achieves $2.53–$2.95/SF in Smiths Falls and $2.76–$3.07/SF in Renfrew, PPH’s rental assets in Picton carry equal or superior pricing power with zero competing luxury new-construction rental inventory.
Section 2
PPH Taylor & Carter (Claramount Club) vs. Lepine Renfrew
Lepine Renfrew features a full swimming pool, party room, and gym—amenities Fred specifically noted as comparable to The Claramount Club.
| Unit Type / Category | Lepine Renfrew Size | Lepine Renfrew Rent | PPH Taylor/Carter SF | PPH Current Rent | PPH $/SF | Strategic Realization |
|---|---|---|---|---|---|---|
| 1-Bedroom (Standard) | 826 SF | $2,513 ($3.04/SF) | 673–803 SF | $2,300–$2,500 | $3.11–$3.42 | Direct alignment with Renfrew achieved rates |
| 1-Bedroom + Den | 917 SF | $2,649 ($2.89/SF) | 753–943 SF | $2,600–$2,750 | $2.91–$3.45 | Strong market validation for $2,600+ baseline |
| 2-Bedroom Standard | 1,177 SF | $3,248 ($2.76/SF) | 990–991 SF | $3,200 | $3.23 | PPH captures identical check on leaner SF |
| Corner / Premium 2BR | 1,294–1,342 SF | $3,650–$4,116 ($3.07/SF) | 1,071 SF | $3,400 | $3.17 | Upside: Top suites can test $3,650–$3,850/mo |
Claramount Club Amenity Monetization
Package the Club Fee into the Gross Lease: In the original Taylor underwriting, the $36k/yr Claramount Club fee was excluded as an uncertain tenant pass-through. Lepine’s Renfrew results prove tenants eagerly pay $3,200–$4,100/mo when resort amenities (pool, dining, gym, wellness) are bundled. Marketing Taylor & Carter as "All-Inclusive Waterfront Club Living" fully captures this revenue.
Section 3
PPH West Meadows Horizon 1 & 2 vs. Lepine Comps
PPH WM Horizon 1 & 2 (72 purpose-built rental units across two 36-unit buildings) features highly efficient wood-frame apartment layouts.
| PPH WM H1/2 Layout | PPH SF | PPH Rent (Current) | PPH $/SF | Lepine Smiths Falls Comp | Lepine Renfrew Comp | The "Affordability Moat" Advantage |
|---|---|---|---|---|---|---|
| Bachelor / 1BR | 469 SF | $1,290/mo | $2.75/SF | 841 SF @ $2,203 ($2.62) | 826 SF @ $2,513 ($3.04) | Sub-$1,300 entry rent has zero regional competition |
| 2BR / 1-Bath | 537–665 SF | $1,504–$1,763 | $2.65–$2.80 | 841 SF @ $2,325 ($2.76) | 917 SF @ $2,649 ($2.89) | 2-Bed utility at the price of Lepine's 1-Bed |
| 2BR / 2-Bath Interior | 653 SF | $1,763/mo | $2.70/SF | 1,249 SF @ $3,243 ($2.60) | 1,177 SF @ $3,248 ($2.76) | Nearly HALF the monthly check ($1,763 vs $3,243) |
| 2BR / 2-Bath Corner | 665 SF | $1,929/mo | $2.90/SF | 1,270 SF @ $3,451 ($2.72) | 1,294 SF @ $3,650 ($2.82) | Sub-$2,000 corner 2BR drives instantaneous absorption |
PPH WM H1/2 Value-Creation Scenario
Because PPH WM H1/2 delivers a 2-bedroom home for ~$1,763–$1,929/mo (vs. Lepine's $3,200+), PPH has headroom to optimize rents by +$100 to +$150/mo per suite ($1,875–$2,050/mo, or $2.85–$3.10/SF). Across 72 units, an avg +$125/mo increase generates +$108,000/yr in gross revenue and ~+$91,800/yr in NOI, adding +$2.02M in CMHC appraised takeout value across Horizon 1 & 2.
Section 4
Institutional Structuring Takeaways for PPH
| Operational Feature | Lepine Practice | Application for Taylor/Carter & WM H1/2 |
|---|---|---|
| Lease Duration | 3 to 5 Years | Adopt 2- to 3-year initial leases: De-risks CMHC stabilization, eliminates turnover friction, and attracts long-term lifestyle retirees. |
| Rent Escalators | 3% Built-In Annually | Model 3% contractual escalators: Grows annual NOI by ~9.3% by Year 3 and ~15.9% by Year 5 without marketing costs. |
| Utility Metering | Tenant pays Hydro & Water | Confirmed: Both Taylor/Carter and WM H1/2 utilize electric heat pumps with suite-level electrical and sub-metered water. |
| Leasing Incentives | Commissions scale with achieved rent | Commission-Incentivized Leasing: Structure leasing compensation with bonus tiers for securing leases above proforma baselines. |