About the Business
Built by Downing Street Group, a commercial real estate developer, WorkCo is a new 11,000 sq ft coworking space for entrepreneurs and small businesses located in south Etobicoke. Located in a retrofitted warehouse, WorkCo offers a space filled with greenery, thick-slab wood tables, ample natural light, and room to collaborate with other businesses. With capacity for 120 members, WorkCo provides entrepreneurs with an alternative to renting offices at uninspiring and often expensive business centres.
About the Loan
In 2018, Downing Street Group partnered with VCIB to get the WorkCo project off the ground. To finance the initiative, VCIB extended a $3M mortgage to Downing Street. VCIB worked with the Downing Street Group to identify an affordable mortgage that provided the flexibility required to effectively execute the WorkCo project.
About the Impact
Entrepreneurs and small businesses often struggle to find affordable appropriate workspaces that meet their changing needs. While the coworking model has taken hold in downtown Toronto, for entrepreneurs in Etobicoke options have been limited. For basic services – an office, lobby, and washrooms – entrepreneurs in the Toronto area can expect to pay as much as $70,000 a year, a cost that can be hard for small businesses to support. In this context, VCIB’s mortgage financing has enabled Downing Street Group to quickly meet the needs of Etobicoke’s a growing entrepreneurship community via WorkCo. Opening in late 2019, WorkCo now offers affordable coworking space for 120 people in its 11,000 sq ft facility. VCIB’s experience in social purpose real estate has been critical for Downing Street Group’s stakeholders, reinforcing the impact-oriented mission of the project and acting as a strong signal to investors.
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