Build-to-Order Multifamily Investments in Ottawa
New 6-plex to 12+ unit rental buildings, delivered tenanted with CMHC financing in place.
New Multifamily Built to Order
We build it, lease it up and hand you a stabilized building
We are a development group that builds new low-rise rental buildings for investors to order in Ottawa and in growing towns within about an hour of the city, any size from 6-plexes up to 12-unit buildings or larger, depending on the site and your budget. We only select sites that already have the zoning approved, so there are no rezoning applications to slow things down. We secure the site, finance the project, pay the soft costs, manage construction and lease the building until it is stabilized. At that point you take ownership with CMHC-insured financing already in place. You get a brand-new building with tenants paying top-of-market rents, without the risk, delays and cash calls of developing it yourself.
Built for proactive investors
Stop waiting for the right building to come to market
Buying an older building is rarely as simple as it looks. Many need new roofs, windows, boilers, plumbing or electrical, plus suite renovations to bring rents up to market. To do that work you either have to negotiate tenants out or wait years for them to move out on their own, all while carrying under-market rents and surprise repair bills.
Proactive investing takes all of that off the table. We secure a zoning-approved site, build a brand-new building and lease it up at today's market rents, and you take over a fully tenanted property with CMHC-insured financing in place. If you are not interested in major renovations, capital improvements or managing tenant turnover to reposition a property, this strategy is ideal: the lowest cost, the least effort and the least risk way to own multifamily. Repeat it as often as you like to grow a portfolio.
Buying an older building
- Major renovations and capital upgrades
- Evictions or years waiting for tenants to move out
- Under-market rents until the work is done
- Unknown repair costs and surprises
Building proactively with us
- Brand-new building, no renovations needed
- Fully leased at today's market rents
- CMHC-insured financing already in place
- About 15% down, paid in milestone deposits
Zero development risk for the investor
We de-risk the entire development and finance the whole project
Building new multifamily is where most investors get hurt: rezoning delays, construction loans, cost overruns and empty units during lease-up. Our process takes all of that off your plate. We carry the development from site to stabilized building, so you buy a finished, tenanted asset instead of a construction project.
What we take care of
- Selecting sites with zoning already approved, so there are no rezoning applications
- Financing the entire project, including land, soft costs and construction
- Design, site plan, permits and construction management
- Leasing the building at top-of-market rents until it is stabilized
- Arranging CMHC-insured financing on the finished building
All you do
- Sign a purchase contract for your building
- Pay a series of deposits at set milestones during construction, much like buying a new home or condo
- Take ownership of a new, tenanted building with the mortgage already in place
Big savings at closing
No land transfer tax on your new building
Each building is owned by its own holding company. Instead of buying the property, you buy the shares of that company. The building and its CMHC-insured mortgage come with it, and because the property itself never changes hands, no Ontario land transfer tax is payable.
On a multifamily building, that is tens of thousands of dollars that stays in your pocket, or goes toward your next building.
Examples use Ontario land transfer tax rates for multi-residential property. Ottawa has no municipal land transfer tax. Speak with your lawyer and accountant about how a share purchase fits your situation.
Example savings
$56,475
Land transfer tax avoided on a $3,000,000 building
| $2,000,000 building | $36,475 |
| $4,000,000 building | $76,475 |
| $5,000,000 building | $96,475 |
CMHC-insured financing
How CMHC financing boosts cash-on-cash return, ROI and IRR
Every building is planned to be handed over with a CMHC-insured mortgage in place. CMHC mortgage loan insurance is what makes it possible to buy with about 15% down, and our target program pairs that with a 35 to 40 year amortization. The longer amortization keeps payments manageable on a larger loan, so the building still cash flows while far less of your own money is tied up. That is what drives a higher cash-on-cash return, ROI and IRR.
About 15% downInsured loans can reach about 85% of value, so far less of your own capital is tied up.
Longer amortization35 to 40 years, versus about 25 years on many conventional commercial loans.
Manageable paymentsSpreading a larger loan over 35 to 40 years keeps debt service manageable and the building cash flowing.
Better ratesBecause the loan is insured, lenders typically offer lower rates than on conventional commercial mortgages.
See the numbers for a specific building. Every opportunity comes with a full investor pro forma showing projected rents, expenses, financing, cash flow, cash-on-cash return and IRR, so you can evaluate it on real figures.
Request a Pro FormaLow maintenance, top-of-market rents
Designed for income, not upkeep
A new building means modern systems, low maintenance and major capital improvements deferred well into the future. Utility and operating costs are lower too: modern construction, new energy-efficient windows, better insulation and better-performing mechanical components all reduce what it costs to run the building. New suites also command rents at the top of the market.
Tenants pay their own utilities from day one. Water submetering and separate hydro meters for each unit are designed into the build. Because every tenant pays for what they use from the first day of their lease, there is less waste and abuse of utilities and lower risk for you as the investor. It also maximizes net operating income, which keeps the value of the building at its highest.
It is a simpler way to grow a rental portfolio than buying older buildings that need roofs, windows, boilers and other costly upgrades, and that often have utilities included in the rent.
Our design schema
Every building is designed around one idea: at the end of the day, a rental building is valued on its financial performance. We include what drives rent and efficiency, and leave out features that add cost and future capital replacement without adding income.
No ductwork, more rentable area
Without bulky duct runs and bulkheads, more of the floor plate becomes rentable space, and there is no ductwork to clean, repair or replace later.
Heat pumps with multi-head wall units
Ductless heat pumps with wall-mounted heads in each suite deliver efficient heating and cooling, with each tenant controlling their own comfort.
Supplemental electric heat
Baseboard and wall heaters are added only where needed, such as common areas and stairwells, as a simple, low-maintenance backup.
Fresh air with HRVs and quality fans
Heat recovery ventilators (HRVs) and quality exhaust fans keep air circulating and moisture under control, something most older buildings lack and will eventually need when renovated.
No balconies or flat roofs
Balconies and flat roofs are among the costliest items to maintain and replace. Leaving them out keeps capital reserves lower and avoids large future repair bills.
Nothing that does not earn its keep
We avoid features that do not add income value, and choose durable, proven components that reduce capital replacement over the life of the building.
Options that add income
Each building can be tailored to its location, its market and your strategy.
Coin or card laundry
A shared paid laundry room produces additional monthly revenue for the building.
In-suite laundry
Prefer to offer more convenience? Choose in-suite washers and dryers to support higher rents.
Upgraded appliance packages
In higher-rent buildings, additional appliances such as dishwashers can be included to match the market.
Ground-floor retail
On sites along retail nodes and main streets, up to 30% of the ground floor can be commercial retail space while keeping the building eligible for CMHC-insured residential financing. Retail tenants add a second income stream, often on longer leases.
Paid parking
Where zoning permits, a paid parking area for tenants or the public adds monthly income with very little upkeep.
Easy handover, minimal upfront cost
About 15% down, paid in stages, with delivery in about 18 months
There is no large lump sum up front and no construction financing to arrange. Because we only build on zoning-approved sites, projects move quickly from contract to a stabilized, income-producing building.
Choose your site and sign
Pick a zoning-approved site and building size that fits your budget, then sign a purchase contract.
Pay milestone deposits
Your roughly 15% is paid in a series of deposits as the project progresses, much like buying a new home before it is built.
We build and lease it up
We handle permits, construction and leasing at today's market rents. Projects are planned for delivery in about 18 months.
Take over a stabilized building
Ownership transfers through a share purchase, with the CMHC-insured mortgage already in place.
Our construction team
Built with Magenta Exterior Solutions, our building partner
Our buildings will be built in partnership with Magenta Exterior Solutions, an established Ottawa contractor specializing in framing, roofing and siding. Magenta has worked on multi-residential, tract home, custom home and commercial projects across the Greater Ottawa Area for many of the region's best-known home builders. Its team is fully covered by WSIB, carries $5 million in liability insurance and treats safety as its number one priority.
As a Baeumler Approved company, Magenta commits to fair and honest pricing, work completed to a professional standard, and clean, safe job sites.
Building on that experience, Magenta is expanding into full builds through this new partnership with our development group. Together we deliver the site, design, construction and lease-up as one coordinated team, so you deal with one accountable group instead of a chain of separate contractors.
Ottawa-basedGOHBA memberBaeumler ApprovedWSIB covered
One accountable teamDevelopment, construction and lease-up are handled by one coordinated group.
Experienced tradesFraming, roofing and siding experience on residential, multi-residential and commercial projects.
Safety and insuranceWSIB-covered team and $5 million in liability insurance, so owners are protected.
Built to codeOntario Building Code compliant, with municipal permits and inspections.
18-month planEach project is planned and scheduled for delivery in about 18 months.
Trusted by Ottawa's leading builders
Magenta has worked with
MintoMattamy HomesPhoenix HomesValecraft HomesBrenmarThéberge HomesBassi ConstructionBGC Construction
Builders listed as Magenta Exterior Solutions clients on magentaconstruction.com.
BUILD YOUR PORTFOLIO
Start building your multifamily portfolio today
Order one building or several. Investors can acquire as many sites as they want. Building size is site dependent and based on your budget, from a 6-plex to 12 units or larger, and we will match you with zoning-approved locations across Ottawa and Eastern Ontario that fit your goals. Contact Mitch Gauzas, Royal LePage Commercial, to discuss upcoming opportunities and the deposit schedule.
Where we can build
Ottawa and the smaller towns around it
We can build in Ottawa and in smaller markets across the region, within about an hour of the city and beyond, where land costs are lower and rental demand is strong. We are open to any community where a zoning-approved site, tenant demand and the numbers make sense, including towns not listed here.
OttawaKanataStittsvilleBarrhavenOrléansManotickCarpCumberlandCarleton PlaceAlmonteArnpriorRenfrewCalabogieSmiths FallsPerthKemptvilleMerrickvillePrescottBrockvilleCardinalRocklandEmbrunRussellCasselmanAlexandriaHawkesburyVarsRichmondGreelyMetcalfeNavanWinchesterChestervilleLimogesLanarkAnd more
Build-to-Order Multifamily Investing FAQs
How does a build-to-order multifamily investment work?
You choose a project and pay a series of deposits while we build it. Our development group secures and finances a zoning-approved site, pays the soft costs, manages construction and leases the building. Once it is stabilized, you take ownership with CMHC-insured financing already in place.
How much money do I need to buy a new multifamily building in Ottawa?
About 15% of the market price. Because the building is delivered with a CMHC-insured mortgage in place, the 15% is all you contribute, paid in stages during the development process.
How does CMHC financing improve my return?
CMHC mortgage loan insurance allows a smaller down payment of about 15% and, a 35 to 40 year amortization. Less equity and a longer amortization keep the building cash flowing while far less of your money is invested, which improves cash-on-cash return, and principal paydown and appreciation are earned on a smaller equity base, which raises IRR.
Why buy the shares of the holding company instead of the property?
Each building is held in its own company. Buying the shares lets you take over the building and its existing CMHC-insured mortgage in one step, and because the property itself does not change hands, the purchase avoids land transfer tax. Your lawyer and accountant can advise on how this fits your situation.
What size buildings do you build?
New low-rise rental buildings from a 6-plex to 12 units or larger. The size of each building is site dependent and based on the budget of the investor.
How long does it take to build a new 6-plex or 12-unit building?
Projects are planned to take about 18 months from the start of construction to a completed, tenanted and stabilized building ready for you to take over.
Where can you build?
In Ottawa and in smaller markets around it, including Carleton Place, Almonte, Arnprior, Calabogie, Smiths Falls, Perth, Kemptville, Merrickville, Prescott, Brockville, Rockland, Embrun, Russell, Vars and Casselman. We are open to building in any community where a zoning-approved site, rental demand and the numbers make sense.
Do you buy sites that need rezoning?
No. We only select sites where the zoning for the building is already approved. Avoiding zoning applications removes the biggest source of delay and risk, which is how we fast-track delivery.
Can a syndicate or investment group buy a building?
Yes. Because each building is held in its own company, a syndicate, partnership or investment group can acquire the shares together. Groups can also buy several buildings to build a portfolio.
Can I buy through my corporation or holding company?
In most cases, yes. Your corporation or holding company can acquire the shares of the company that owns the building. Your accountant and lawyer can confirm the best structure for you.
Who pays the utilities in a new build-to-order building?
The tenants. Water submetering and separate hydro meters for each unit are designed into every build, so tenants pay their own utilities from day one. That reduces waste and abuse, lowers risk for the investor and maximizes net operating income and building value.
Can I buy more than one building?
Yes. Investors can acquire as many sites as they want and build a portfolio of new multifamily buildings over time.
Do you also help with existing apartment buildings?
Yes. Buying and selling existing multifamily buildings, with investor-grade pro formas and income-approach valuations, is covered on our Multi-Family Real Estate in Ottawa page.
Mitch Gauzas, REALTOR®
