Case Study: Property Assessment

 

Multi-residential complex – 400+ units, Toronto, Ontario

Background

Certain owners sought expertise to assess the condition and viability of the complex.  The property was in total disarray, wide-reaching Work Orders had been imposed, a Rent Freeze was imposed by the Province due to failure to properly maintain the property, and rent strike by the tenants was in its early stages.  Many of the suppliers and trades refused to deal with the complex due to poor payment history.  Numerous tenants had not paid rent for several years.

 
Property Assessment 400+ UnitsActions taken

  • All of the accounting records were brought up to date.
  • A general sense of order was restored to the complex.
  • All tenants who were in considerable arrears were evicted.
  • A dialogue was opened with the Tenants’ Association, building inspectors, fire department and other city officials. Disputes were mediated, and animosity was reduced between various factions.
  • Every aspect of major repairs was arranged and managed, including the pool, roofs, parking facilities, balconies, installation of new metal siding, and upgrades to elevators and fire safety systems.
  • With the help of a special consultant, the realty tax assessment of the complex was successfully challenged.
  • Mr. Weizel personally lead all of the aspects of the sales process – researched and selected broker, teamed with Broker and Legal Counsel for all stages.
  • Mr. Weizel also presented the company’s position to hostile tenants and media during extended disruption of the property’s water supply while successfully restoring order and calm.

Results

  • An occupancy rate of 99% or higher was maintained at all times.
  • More than $70,000 in additional annual income was secured from non-traditional sources.
  • The rent strike was stopped before it gained any traction.
  • A refund of the previous years’ realty taxes in excess of $750,000 was obtained.
  • The property sold for more than $122,000 per unit.