AptCon19: The Blueprint for Apartment Development Across Canada

AptCon19 May 27-28, 2019 Sheraton Center Toronto Hotel - Provincial Theatre

The 8th Annual AptCon:
The Blueprint for Rental Apartment Development Across Canada

In-Depth, Data Driven, Actionable Advice.

The day and a half event, being held May 27 & 28, 2019, is the blueprint for rental apartment development in Canada. We are going back to our roots in order to make an event that will tackle the real issues that rental apartment developers face.

Over the course of two days, North America’s foremost experts in the rental apartment, mixed-use, and student housing industry will address critical and timely issues that are driving change in the industry today using real world experience, data, and best-in-class case studies to support their conclusions.

2019 Program

Day 1: May 27, 2019 – 1:00 PM – 5:00 PM

The State of the Nation – The Real Story About What’s Happening in Apartment Construction in Canada

A summary of what’s going on across Canada in terms of new apartment construction. Who’s building, who’s buying, who’s selling, what price, and what’s the development pipeline look like going forward. We’re going to quantify where the opportunities are and the product types to be built in the various markets across the country. In this session, we will cover:

  • Benchmark new apartment transactions across the country
  • What product type to build in what market
  • The difference between purpose-built apartment development and condo development
  • Structuring joint ventures between developer and institution
  • Apartment Crane Watch – what’s being built across the country

Getting Started in New Apartment Development – Project Feasibility

Are you building to sell, or hold? Your answer impacts a lot of your strategy. Project feasibility encompasses the full range of analyses that a developer must perform before committing to a given project. As feasibility analysis progresses, the developer must acquire more information that will indicate whether it makes sense to proceed further. During the feasibility period, the project may be cancelled at any time, usually limiting losses to the costs of the feasibility study plus the cost of tying up the land. Positive information, however, usually justifies making the next increment of expenditure to acquire additional information. In this session you will learn the major activities that a complete feasibility takes, including:

  • How to determine initial rental rates and operating costs from 30,000 ft.
  • Market Analysis before Site Selection: Overall neighbourhood rental rates, unit mix, and amenities
  • Site Selection and Acquisition
  • Market Analysis after Site Selection: Site specific rental rates, unit mix, and amenities
  • The Regulatory Process: Working with the city to get your rental apartment project approved

 

Day 2: May 28, 2019 – 9:00 AM – 5:00 PM

Financial Feasibility Analysis

Financial feasibility analysis for land development is performed in two stages. The first stage is a “quick and dirty” pro forma that summarizes the project’s revenues, expenses, financing assumptions, and profit using 30,000 ft data. The second is a multi-period discounted cash flow (DCF) analysis that provides a detailed projection of cash flows, equity and loan needs, profits, and basic return measures, including internal rates of return (IRRs). Developers should perform both stages of analysis before they commit earnest money to a project. In this session you will learn the how to’s of a Financial Feasibility Analysis with specific examples covering:

  • Projecting Operating Revenues & Expenses
  • Projecting Development Costs
  • Multi Period Cash Flow
  • Sensitivity Analysis

Apartment Design – The Future of Apartment Design

The developer’s conceptualization should be based entirely on the target market—not their personal preferences. The rental apartment markets are segmented into many sub-markets, with each niche demanding specific elements. Sub-markets vary enormously by demographics, level of competition, and preferences related to unit mix, unit finishes, parking arrangements, and amenities. Design standards and preferences vary from one geographic region to another. No matter how good the pro forma for a project might look, if the apartments do not satisfy the market’s needs at a rental rate that prospects can afford, the project’s profitability will be limited. Experienced architects and designers will show cutting-edge apartment design, with case studies. In this section we will cover:

  • Determining Unit Mix and Floor Plan Layouts
  • Overall Site Planning
  • Design Exterior
  • Design Interior
  • Apartment Units & Common Area
  • Functionality Audits at Different Stages
  • Municipal Design Issues & Approvals

Financing Purpose-Built Rentals

Purpose built apartment projects, have traditionally relied primarily on four types of financing: equity partners, mezzanine loans, construction loans, and take-out permanent loans. Apartment developers can benefit from CMHC financing and a leveraged capital stack. Experienced financiers will guide the developer in the financing process. In this session we will cover:

  • The pros and cons, and cost, of an equity partner
  • Mezzanine financing strategies
  • Construction Loans
  • Take-out permanent financing

Developing a Marketing Strategy

Marketing begins while a project is still on the drawing board and does not end until a project is sold. In the purpose-built apartment development business, developers cannot create a market where one does not already exist. A developer must understand their target renters and design and build the apartment building with those specific renters in mind. Marketing is not a one-size fits all solution. In this session we will cover:

  • Defining the Marketing Strategy
  • The Marketing, Leasing, and Training Plan
  • The Marketing Budget
  • Public Relations
  • Advertising Strategies

Operations and Management – It’s All About The Rent

No matter how well it is designed and built, an apartment project will be profitable only if it is well managed. New apartment construction management is different than traditional apartment management of an older, stabilized asset. New property management strategies must be used. Further, management must be competent at many levels for a project to succeed. In this session we will cover:

  • Hiring, training, and paying leasing Staff
  • Turnover & Lease Management
  • Lease-Up Strategies for maximum rent & value creation
  • Creating a customer service experience to drive rental rates

Refinancing and Selling The Asset – How to Get The Deal Done

One of the great advantages of owning apartment assets is the ability to refinance it and take out the additional financing proceeds tax free. As the NOI increases over time, savvy owners will refinance their properties regularly to take advantage of the tax-free cash they receive by obtaining larger mortgages. Some developers will choose to keep their asset, and some will choose to sell on certificate of occupancy, partial lease-up, or when fully leased-up.

  • Never Sell: Creating a legacy for your family by leaving them a portfolio of cash-flowing apartment buildings
  • If you sell, how Should you do it and when?
  • What’s the liquidity of a forward sale, an empty building, and a stabilized apartment building?
  • The common mistakes developers make when selling a newly-built apartment building
  • What percent commission should you pay your broker?

Closing Panel: Apartment Developers

Given the broad range of issues that were raised over the last day and a half, a panel of some of the largest apartment developers in the country will offer the last word. Representing a cross-section of Canada and the Canadian apartment landscape, the panel will offer their insights on what risks and opportunities lie ahead, and what courses of action would they suggest accordingly.

  • Should you build?
  • What should you build?
  • What’s the depth of the market?
  • How much rent can you charge?
  • Should you build to keep, or build to sell?
  • If you sell, who will buy?

2019 Registration Fees

Individual Tickets

Up to January 31

Super Early-Bird

$1750

February 1 to April 30

Early-Bird

$1950

After April 30

Regular

$2450

All registrations include light breakfast, morning refreshments, and luncheon.
HST is not included.

VIP Dinner – By Invitation Only

Following the sessions on Day 1, Derek Lobo will host a Developer’s Only VIP Dinner. Venue to be determined.

By Invitation Only, the dinner will be an opportunity for developers to gather with like-minded people, enjoy a great meal, and have a good time.

2019 Speakers

Speakers to be announced in 2019.

Hotel & Travel Information

2019 Exclusive Hotel Rate

SVN Rock Advisors has negotiated preferential hotel rates at the Sheraton Centre Toronto Hotel – the same location as the conference – between Thursday, May 23 – Thursday, May 30, 2019.

Rooms are available at a reduced rate of $289 per night.

Attendees are able to make their own reservations by calling in toll-free at 1-888-627-7175 and stating that they are part of the SVN Rock Advisors’ group, or simply use the dedicated reservation link.

Venue & Directions

Sheraton Centre Toronto Hotel

123 Queen Street West
Toronto, ON M5H 2M9
416-361-1000

Airport Information

Toronto Pearson International Airport (YYZ)

Airport Phone: +1 866-207-1690
This hotel does not provide shuttle service.

Visit YYZ airport website

Driving directions

Take Highway 427 South to Queen Elizabeth Way East, merge onto Gardiner Expressway East. Exit onto York Street and go North. Turn right onto Queen Street.

Billy Bishop Toronto City Airport (YTZ)

Airport Phone: +1 416-203-6942
This hotel does not provide shuttle service.

Visit YTZ airport website

Driving directions

Take the Gardiner Expressway East and exit at York Street. Follow York Street north and turn right onto Queen Street West. The hotel will be on your right.

Deal Room

What’s a Deal Room?

It’s where people meet to develop apartments.

It’s where stakeholders from across Canada come together to talk about structuring deals, joint ventures, partnerships, and alliances.

Video introducing The Deal Room

How does it work?

Alongside The 8th Annual AptCon: The Blueprint for Rental Apartment Development Across Canada, we are happy to announce that we will be holding the popular Deal Room.

Arrange a one-on-one meeting with Derek Lobo, or another member of the SVN Rock team, to discuss the details of your project. We will help you determine exactly what you need to move forward with your project, and we will use that information to connect you with the experts in New Apartment Construction in Canada to ensure your project is a success.

Registration for AptCon is required. No additional fees for access to the Deal Room.

Terms and Conditions

Cancellation and modifications must be advised by email to stefanie.schopen@svn.com and include your name and confirmation number.

Modifications & Substitutions
After May 15, registration modifications or substitutions will be subject to an administrative fee of $75. This fee will also apply to modifications on site.

Cancellations & Refunds
Registration cancellations received on or before May 15 will be refunded 80% of all fees paid. After May 15, refunds will not be made for cancellations or no-shows.

Policies

Please note that speakers and program are subject to change to without notice.

By attending this event, you may be the subject of still photography or videography which is used by SVN Rock Advisors Inc., Brokerage for purposes of promoting future events. By attending, you agree to grant SVN Rock Advisors Inc., Brokerage the right to use your likeness in any photographic or video coverage of the event.

By registering for this event you agree to all of the above policies.

International Attendees

Visa Information & Letters of Invitation

Pertaining to the New Apartment Construction conferences and workshops in Canada; SVN Rock does not issue formal Visa invitation letters, supporting letters, nor correspond with embassies regarding entrance to the country or attendance at the selected event. An administration fee of $175 is applicable to each registration which is non-refundable. To register, please contact Stefanie Schopen with credit card details, include a photocopy of your passport verification page, both sides of your credit card and fax to 905-319-2528. Thank you for your interest and understanding.

Electronic Travel Authorization – Visa Exempt Foreign Nationals

As of March 15, 2016, visa-exempt foreign nationals are expected to have an Electronic Travel Authorization (eTA) to fly to or transit through Canada. Exceptions include U.S. citizens, and travellers with a valid Canadian visa. Canadian citizens, including dual citizens, and Canadian permanent residents are not eligible to apply for an eTA. However, from March 15, 2016 until Fall 2016, travellers who do not have an eTA can board their flight, as long as they have appropriate travel documents, such as a valid passport. During this time, border services officers can let travellers arriving without an eTA into the country, as long as they meet the other requirements to enter CanadaFind answers to your questions about the leniency period.

Questions

Please call 905-331-5700 x 232 or email stefanie.schopen@svn.com.