Cambrian Foothills I LP

Alberta Investment

New Medical OFFICE BUILDINGS in Calgary, Alberta

Construction, lease up and sale of Phase I of Cambrian Foothills Medical Campus.

 

The Property

  • Two modern, 4-storey, state-of-the-art office buildings
  • Located on a prominent and highly accessible northwest location along Calgary’s scenic Bow River Valley, within very close proximity of Alberta Children’s Hospital, Colonel Belcher Seniors Residence, and Foothills Hospital.
  • Zoning, Development Permit, and Building Permit are in place.
  • Construction financing has been arranged with HSBC. The developers have provided construction financing guarantees.
  • Builder (Clark Builders) is on site and has cleared it (Aug. 2007).

 

The Strategy

  • Site acquisition and all planning commenced two years ago, and the project is well underway. The strategy is to raise equity to acquire the land and project (at its then current state) from the developer, complete construction, lease it and provide occupancy to the tenant.
  • Developer intends to apply proceeds to commence Phase II.
  • Projected two year project completion timetable, commencing Fall 2007.
  • A single private medical facility has agreed to lease 60% of the available space.
  • The buyer of the fully leased property has been identified and is waiting to purchase it.

 

The Numbers

       

Equity to be raised:

$ 16,800,000
     

Projected Profits:

$ 23,600,000
     

Investors’ Share of Profits (45%):   

$ 10,620,000
     

RETURN ON INVESTMENT IS PROJECTED TO BE 30%+ per year, based on expected two year project term.

 

The Investment

  • Investors become Limited Partners in partnership that will own the land and project.
  • Investors receive 45% of profits.
  • Minimum investment (Units of $1,000):
            $50,000 for Accredited Investors*
            ($150,000 for non-Accredited Investors.)

* "Accredited Investor" means, in the case of an individual, either:
(a) someone whose net income in each of the last two calendar years exceeded $200,000 (or, if combined with that of a spouse, $300,000), and who reasonably expects to exceed that amount in the current calendar year, or
(b) someone who, either alone or with a spouse, owns financial assets having an aggregate realizable value that, before taxes, but net of any related liabilities, exceeds $1,000,000. The subscription documents include a work sheet to assist in defining financial assets.

 

The Manager

The general partner is Calgary-based Cambrian (Foothills) I Properties Corp., controlled and operated by Art Szabo and Don Rumpel.


The Documents