We have been finishing up a couple of deals in Southern Ontario, one in Chatham (a few posts below) and one in Windsor. The latter deal is finalized and we are now the current owner!

This is a 22 unit located in downtown. Many units as well as common building areas have been fully renovated, and the boiler is brand-new.

Now, with an unemployment rate of 11%, you might wonder why we’re investing in Windsor, (and, to a certain extent, Chatham).

But here’s the deal.

First of all, both cities are going to rebound. Not in the immediate future, obviously, but it will happen. The economy is diversifying, and huge service industries have been moving into both cities, including, but not limited to, pharmaceuticals, insurance, and software. These cities are going to go up in a little bit, and we can help facilitate that process? A rising tide lifts all boats, etc.

Second of all, even though an area might not seem like the greatest place, it depends on the competition. Even in a town that isn’t doing well, there are still people with money (The doctors, the lawyers, etc) looking for a nice place to live, and if you own the one nice apartment building in town, they all come to rent from you. And there are few nice existing apartment complexes in these cities. So we can fill the gap.

A final, if less important factor is Windsor’s high rate of foreign-born immigration. 20% of Windsor’s population is foreign-born, the fourth-highest in Canada. The flow hasn’t really been slowing, which means, as we continuously refrain here, that more people will be looking for a place to live.

We don’t have pictures of units yet because tenants are living in them, but a glimpse of the building in the meantime.