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Avenue Living Real Estate Core Trust

Investor Eligibility : Open
Minimum Investment : Class D $5,000CAN; Class D-U $5,000USD
Total Target Return :
10-year target return of 8-12% per annum, Net of Fees
December 2023 : Open
Compliance : 20230403IA

Avenue Living Real Estate Core Trust (the "Trust"), through its investment in Avenue Living (2014) LP (the "Partnership"), provides investors with the opportunity to participate passively and indirectly in the consolidation of multi-family assets across North America.

The Partnership specializes in high-quality, low-to-medium density Class B & C properties located in strategically selected markets that present strong key fundamentals: positive net-migration, high relative incomes, and affordable rental rates.

The Trust was formed in 2017 to provide investors with the opportunity to participate alongside the Partnership in its investment mandate, which seeks to achieve returns through capital appreciation and yield by acquiring assets below replacement value and investing in capital and operational improvements.

Avenue Living Real Estate Core Trust : Overview and Executive Summary

Avenue Living Core Trust

Growth of the Platform

Growth of Platform

Avenue Living Group Footprint

Core Trust

Mini Mall Storage Properties

Agricultural Land Trust

Opportunity Trust

Head Office

C$4.67 Billion+ Assets Under Management (AUM)

Source: Avenue Living internal data (unaudited); AUM information presented on a consolidated basis as at January 31, 2023; Includes Avenue Living (2014) LP (Avenue Living Real Estate Core Trust), Mini Mall Storage Properties Trust, Avenue Living Real Estate Opportunity Trust, Avenue Living Agricultural Land Trust, and Tract Farmland Partners LP; (*) Denotes partial period; Operating landscape presented as at February 28, 2023; Figures shown are past results and are not indicative of future results. 

Core Trust Overview

Avenue Living Core Trust

Core Trust Overview

The Avenue Living Platform is Thriving

C$3.14B AUM

14, 400 Units

Global events have tested the strength and resilience of our investment strategy – Our continued focus on the “workforce housing” market segment is supported by the tenacious tenant profile of our residents, many of whom are essential workers.

Resident Base

Our dedicated employees have been critical to our continued success and their ability to quickly adapt to the “new normal” of remote property management and customer service reinforces the robustness of the Avenue Living Platform.

Employee Base

We develop deep-rooted relationships with our lending and equity partners – Our ability to access capital markets quickly and efficiently has supported our disciplined approach to investing, buying, and renovating our assets.

Partnerships

Supported by our considerable property management infrastructure, Avenue Living’s focus on “Investing in the Everyday” has demonstrated itself to be a defensive investment strategy in almost any market environment.

Asset Base

Avenue Living internal data (unaudited); AUM presented on a consolidated basis as at January 31, 2023; Units presented as at February 28, 2023.

Avenue Living Core Trust

Why North American Workforce Housing?

North American Workforce Housing

Workforce Housing caters to a city’s “essential workers”, who are overqualified for affordable housing yet may not be able to afford average market-rate homes, whether for rent or purchase. Based upon the experience of Avenue Living, the income range of individuals or households ordinarily occupying its properties is generally between $15/hour and $50/hour (1)(2)(3).

Target markets exhibit a fragmentation in asset ownership with an abundance of "mom-and-pop" legacy owner-operators, suggesting a considerable opportunity for the regional consolidation of well-performing class B/C assets (2).

The Avenue Living Group ("Avenue Living") possesses the vertically integrated infrastructure and resources necessary to deliver institutional-level asset and property management services, improving resident experience and satisfaction and driving profitability (2).

Legacy owner-operators are increasingly cycling out of their older stock assets, to avoid committing the required capital investment to adapt to a changing resident demographic that increasingly favours active over passive management (2).

LIFESTYLE

RESIDENTS

TRANSITIONAL

MILLENIALS

HARD-TO-HOUSE

POPULATION

AFFORDABLE

SOLUTIONS

RESIDENT PROFILE SPECTRUM (2)(3)

Low rent per sf

Transient tenant population

High operational cost due to age and utility efficiency

Basic rental offering with few amenities

Low rent per sf

Transient tenant population

High operational cost due to age and utility efficiency

Basic rental offering with few amenities

Stabilized rental rates are generally indexed to income (~30% or less)

Sticky tenant population

Lower operating costs relative to lease income rates

Providing enhanced services and utilities packages generates additional ancillary revenue streams

WORKFORCE

HOUSING

LOW DENSITY

LOW-MEDIUM DENSITY

MEDIUM DENSITY

MEDIUM-HIGH DENSITY

HIGH DENSITY

(1) National Realtor Association (NAR). Community and Political Affairs. Module 1: Workforce Housing Overview; (2) Based upon management's experience and Avenue Living internal research and analysis (unaudited); (3) Wilson, G. A. & Giuffre, A. Private rental target markets: A comprehensive spectrum. International Real Estate Review; Please refer to the Offering Memorandum dated March 1, 2023, for additional information.

Avenue Living Core Trust

Vertically Integrated Operations

Vertically Integrated Operations

Avenue Living is a vertically integrated real estate principal with 800+ in-house professionals in Canada and the United States across all of its operating platforms.

Internalized operations enable complete cost control, supporting Avenue Living’s strategy of managing wide not high.

 

Employing a strategy that leverages both human capital and technology, Avenue Living is able to manage Class B and C assets a scale, bringing institutional-level quality management to low-to- medium density affordable housing, self-storage, and farmland.

 

With office presence in both Canada and the United States, Avenue Living ensures that there is "boots on the ground" operating experience available to support entity portfolio assets.

Avenue Living Communities

Avenue Living

Decentralized Property Management

Finance, Accounting & Legal Functions

Full-Service Marketing & Design Solutions

Global Supply Chain Management Solutions

24/7 Call Centre & Work Order Servicing

Market Research & Industry Reporting

Brand Management & Strategic Planning

Capital Projects & Facilities Lead

Resident Services & Community Outreach

Capital Markets & Investor Relations

Social Media Manager & Content Creator

Occupational Health & Safety Manager

Avenue Living internal information (unaudited); Number of employees includes personnel across all Avenue Living Group entities.

Avenue Living Core Trust

Asset Selection & The Avenue Living Standard

Asset Selection & The Avenue Living Standard

ASSET SELECTION

CLASS B/C

Avenue Living’s strategy is to focus on Class B and C assets that others consistently overlook.

• Legacy Stock
• Low Rent PSF
• Recession Defensive

• Non-Institutional
• Higher Relative Yields

CLASS A

This allows Avenue to purchase assets below replacement cost and build a dominant market position

• New Build
• High Rent PSF
• Business Cycle Risk
• Institutional Competition

• Low Yields

Subsequent capital investment to de-risk and reposition the properties provides potential for increased returns

THE AVENUE LEAVING STANDARD

To deliver institutional quality management, Avenue Living has implemented a standardization policy that upgrades suites in two finish styles: “Premier” and “Classic”. This standard is now implemented in all markets and is part of the asset plan on all new acquisitions.

Avenue Living Core Trust

Current Market Diversification

Current Market Diversification

Current North American Footprint

C$3.14B Assets Under Management

Avenue Living internal data (unaudited); AUM presented on a consolidated basis as at January 31, 2023; Units presented as at February 28, 2023.

Avenue Living Real Estate Core Trust : Offering 

Avenue Living Real Estate Core Trust : Disclaimer

RISK FACTORS

Investment in securities of the Fund involves a degree of risk and is suitable only for investors who can withstand the loss of their investment. No assurance, representation, or warranty can be given that the Fund’s investment objectives will be achieved or that investors will receive a return of their invested capital.

Disclaimer and Forward-Looking Information The information in this presentation is not intended to provide you with any financial, accounting, tax or legal advice. Delivery of this presentation does not constitute an offer to sell or a solicitation of an offer to purchase securities under the securities laws of any jurisdiction. Certain information in this presentation by Avenue Living Asset Management Ltd., the Avenue Living Real Estate Core Trust and any of their respective affiliated funds or entities (collectively, "Avenue Living", the "Core Trust", "we", "us", "our") may constitute "forward-looking statements" as defined in applicable securities laws. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, and include statements regarding the Core Trust’s competitive strengths, goals, expansion, growth, future success, operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, and outlook. These statements are based on management’s expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. The risks and uncertainties related to the Core Trust are discussed in the Core Trust’s most recent Offering Memorandum available at www.sedar.com (the "Offering Memorandum"). Although we believe that the anticipated future results, performance, or achievements expressed or implied by the forward-looking statements are based upon reasonable assumptions and expectations in light of information available at the time such statement is or was made, no reliance should be placed on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements to differ materially. Except as required by law, we undertake no obligation to update or revise statements or information in this presentation, whether as a result of new information, future developments, or otherwise. Past performance or historical results are not necessarily indicative of future results and there can be no assurance that comparable results will be achieved. Any target returns disclosed in this presentation are for illustrative and informational purposes only and no assurance, representation, or warranty is made by any person that the target return will be achieved. The Core Trust does not warrant that this presentation, including any projections, predictions, forecasts or other forward-looking statements relating to the Core Trust’s performance, will be accurate, complete or up-to-date, or that inaccuracies or errors in this presentation will be identified or remedied. This presentation contains certain data obtained from third party sources. Such third party data is provided for information purposes only and, while it was obtained from sources believed to be reliable, the Core Trust has not independently verified such data and does not make any representations as to its accuracy, completeness and/or timeliness. The Core Trust investments are offered for sale pursuant to exemptions from applicable securities laws. You are strongly encouraged to read and understand the Offering Memorandum fully before participating in this offering. Investors are urged to conduct their own due diligence and should discuss with their own registered dealer/financial advisor, and independent tax advisors their investment needs and objectives, the suitability of any security, the risks associated with them, and any other matter of possible concern.

Pinnacle Wealth Brokers Inc.

Internal Compliance Audit : Avenue Living Core Trust 20230403IA : 3,4,6,7,8,9,10,11,17,18

Clients want a collaborative wealth management experience that inspires confidence driven by results.

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