Stream’s core focus is value-add and opportunistic investments higher up the risk-return chain.
Our strategy is to invest in properties that have significant execution risk to add the necessary
value to drive enhanced returns — major renovation, repositioning, lease-up to stabilization,
redevelopment and new development.
We strive to leave properties better than we found them. We design and implement property
transformations that combine thoughtful, tenant-centered design with innovative capital plans
and finely-tuned operations.
Our typical investment horizon is 5 to 10 years with a target of achieving a 10%+ IRR for our highly valued equity partners. We seek to acquire and develop properties that upon stabilization will:
- generate attractive yields,
- continue to appreciate in value, and;
- be well positioned for a profitable disposition into the market.
In addition to producing attractive risk-adjusted returns for our equity partners, we strive to enhance the life of every tenant, team member, and individual that comes into contact with our business.
Our commercial real estate investment opportunities will typically require between $2 million to $5 million of equity – a project size segment which is underserved in the industry. Our mission is to offer investors a vehicle to diversify their portfolios with alternative investments, while delivering consistent income, along with upside potential based on value creation. Commercial real estate properties offer investors inflation protection in the form of a hard asset and higher risk-adjusted returns versus other alternative investments.
Inflation Hedge: Commercial real estate rents have generally risen with inflation over the long term, thus providing built-in protection against inflationary pressure. Moreover, when financing is utilized to acquire a commercial property, there is the added benefit of debt being repaid with inflated dollars in future periods. The combined effect provides investors with a time-proven ability to protect the purchasing power of capital, while also generating a solid rate of return.
Tax Advantages: Unlike many other investment types (stocks, bonds, commodities etc.), the commercial real estate sector possesses several unique tax advantages, including: depreciation, capital cost allowance and carrying costs. What this means is that during the first 5 to 10 years of ownership, most of the income generated is offset by deductible expenses or deferred until the property is sold.
Steady Yield: Commercial real estate that is well-managed, conveniently located, and offers the right balance of value and amenities, is always in demand. The population of the Lower Mainland is expected to grow by over 1 million people over the next 15 years, driving continued strong demand for purpose-built rental housing – and the resulting stable cash flow and rent growth.
Interest Rate Hedge: Over time, if interest rates go up, so too do residential rental rates. A rise in interest rates results in an increase in the true cost of home ownership – driving many would be homeowners back into rentals. Historically, this increase in demand for rental housing has contributed to subsequent increases in rental rates.
Attractive Financing: Given the historically strong cash flow and value preservation characteristics of the multifamily real estate sector, lending institutions generally offer far more attractive financing terms (compared with other sectors). Furthermore, due to the important role of housing to our society, the Federal Government supports multifamily lenders with CHMC insured loans. This government sponsorship allows select lenders to provide superior financing terms for multifamily assets.