The Condo Store is a 17-year-old boutique investment company that specializes in pre-construction condo real estate in Toronto. While it has about 300 high-net-worth clients, mostly doctors, surgeons, and business professionals, and has invested in about $25 billion worth of projects, Peters, who is also a client, says it can benefit others who can make the down-payment and take advantage of the firm’s two or three offerings each year.
“Toronto is the number one condo city in the world for the last few years with regards to the number of buildings going on. We have a fundamental housing shortage that it’s going to take 20 to 25 years to fill,” said Simon Mass, The Condo Store’s chief executive officer, adding that the Toronto market has seen incredible growth in the past 30 years. “We want to spread the word that the pre-construction sector is its own asset class “
Mass said the firm likes to get into a developing area early and get out before it begins to price too high. Its annual return on investment for all its investments has been 43% because of the leverage model that it uses, the fact that the Toronto real estate market increases by 7% to 12% a year, and it takes five to seven years to complete a project.
“We’re using the art of leverage to basically encompass a very, very large double digit return on investments, which isn’t for everyone,” said Mass. “Because at the end of the day, we’re only dealing with qualified investors, and they have to be able to close on those investments.
“Our clients are side-by-side partners in buying and supporting the pre-construction condo space in Toronto, and it isn’t just for mom-and-pop investors. Our clients are buying 20 to 40 units every few years. So, they’re growing their asset class in the real estate sector and they’re doing it in one of the smartest ways because they’re using leverage. They’re really able to buy properties with very little down because it takes five or six years for that property to be delivered. So, we are really looking to attract new high-net-worth clients and family offices because I think this sector, the pre-construction space, has been really overlooked by a lot of high-net-worth investors.”