CALGARY, May 21, 2015 – Arlington Street Investments (“ASI”) is pleased to announce that it has been awarded the Commercial Real Estate Deal of the Year by the Private Capital Markets Association of Canada (“PCMA”) on the financing syndication and development of the Haiku Management Limited Partnership (“Haiku”). This is the second time in three years that ASI has won this prestigious award – the first being in 2013 for their 8th Avenue Limited Partnership in Calgary – and is the first time that an issuer in Canada has won the award more than once. The PCMA awards encourage best practices, high standards of conduct and recognize private capital market business leaders who are helping build a vibrant and successful private capital market in Canada.
The ‘Haiku’ property was strategically purchased in the southwest Beltline area of Calgary, a neighborhood in transition that has experienced many exciting redevelopments in its movement towards gentrification. Since successfully repositioning and stabilizing the asset just over 5 years ago, this property is now surrounded by a number of newly announced, high profile, high density developments. Completely renovated, the Haiku building provides an attractive retail and entertainment destination for locals and visitors to the area.
The Haiku investment has provided strong, positive cash flow and high yield annual income to its investors, resulting in a triple digit cash-on-cash return. In the first quarter of 2015, this project was fully refinanced by ASI – a full quarter ahead of its 5-year financing schedule. As a result, investors received 100% of their original invested capital in March 2015, in addition to receiving 7.5% distributions annually since 2010. The investors still own their original units, which have tripled in value. More information on this project can be found at //www.arlingtonstreet.ca/?p=0&action=property&ID=684.
“We’re extremely pleased with this award as it showcases the success of our business strategy,” stated Frank Lonardelli, President and Chief Executive Officer. “I believe that several things contributed to our award: (1) our innovative approach to structured investment products, (2) our unique view towards real estate (aggressive redevelopment that consults and builds long-term relationships with tenants and the community), and (3) our dedication to educating the marketplace. Our investment projects revitalize and enhance neighborhoods, while providing significant returns to our investors.”
Nominees for the PCMA’s Private Capital Deals of the Year are evaluated based on their leadership in the industry, their contribution to the deal, innovative market, product or investment opportunities created, the benefits of the deal for the issuer and for investors, and the overall impact of the deal on the quality and integrity of the private capital markets. The exempt market in all of Canada is well over $140 billion dollars and continues to grow as a significant source of wealth.
Arlington Street Investments (“ASI”) is a Calgary based investment firm that is dedicated to providing high quality real estate investments through private market financings. Our business is focused on building relationships, strengthening partnerships, and enhancing value throughout the entire development process. Our strategy is to identify real estate projects that can be positioned for an increase in value through active development, redevelopment and
ASI represents the next generation of developers: entrepreneurs committed to aligning the values of the community with our own to revitalize and enhance neighbourhoods, and create iconic buildings that stand the test of time. Committed to innovation and strategic thinking, ASI creates projects that yield significantly higher total returns than traditional real estate investment options. Our investment philosophy is based on total returns balanced with capital preservation and equity appreciation. Our projects are designed structurally to not only return, but double equity within a 5-year period, and to drive high single digit yield returns during the holding period. ASI’s projects range from $15 to $100 million.
We believe strongly in a high level of integrity, honesty, investor education and giving back to the community. ASI hosts ‘Frankly Speaking’ on its website, providing knowledge about the private market, investing and the industry. We created the Arlington Street Foundation Scholarship (‘ASFS’), a non-for profit volunteer organization which funds and supports postsecondary education of students who are distinguished by their resiliency, ability to overcome adversity and commitment to succeed. The ASFS has successfully transitioned its first recipient, who has graduated from the University of Winnipeg with a degree in Education in 2014.
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Envision what ought to be there. Not what is. Then be courageous enough to create it.