About the Businesses
Avanew is a wholly owned subsidiary of Core Development Group, a Toronto-based real estate development company that aims to transform urban landscapes with thoughtfully designed communities. Core approaches its projects with a focus on quality and long-term sustainable development, often including green features and technologies such as geothermal energy and water conservation.
About the Loan
Avanew’s Single Family Rental (SFR) initiative aims to acquire and renovate properties to expand rental options and support Ontario’s undersupplied housing market. Through this initiative, Avanew will acquire and renovate Single Family properties throughout Ontario. These houses will be converted into legal duplexes to increase the province’s low-cost rental housing supply. When the renovations are complete and the units are leased, VCIB will provide $30,000,000 to refinance the existing debt.
“We are excited to be partnering with VCIB to bring more rental supply to the Ontario market,” said Faran Latafat, President of Single Family Developments at Core Development Group. “The vast majority of assets acquired under the SFR initiative are purchased from existing rental property stock. By renovating and converting these residences into duplexes, additional rental units will be injected into the market.”
About the Impact
The cost of new construction often requires newer units to be rented at higher prices. However, by repurposing existing single family houses instead of demolishing and/or building new homes, Avanew’s properties will be able to offer lower-priced rent, addressing the province’s underserved affordable rental market. Furthermore, the renovations will upgrade the building envelopes with higher R-value insulation, low thermal emissivity windows, new energy efficient appliances, and LED lighting to reduce the carbon footprint of the properties. Additional potential upgrades include new furnaces, air conditioners, and sustainable building materials.
As Canada’s only values driven bank, VCIB believes finance can be a tool that drives lasting change. VCIB provides construction, term, and acquisition financing for commercial real estate that drives social, economic, and environmental benefits. Visit our Real Estate Financing page to learn more.