What exactly am I investing in?
‍You are investing in a structured, limited partnership formed to develop and operate a portfolio of approximately 20 purpose-built townhome-style 4plex buildings across infill locations in Edmonton and Calgary. The strategy involves acquiring strategically positioned land, completing vertical construction, leasing the assets for income stabilization, and executing a long-term hold followed by a disposition or refinance event. Investor capital is pooled to fund the project’s equity requirements, and participation is offered exclusively on a passive basis. Your risk exposure is limited to the capital invested; there are no personal guarantees, debt obligations, or operational responsibilities.

Is this like buying a rental property?
‍No. This is a professionally managed private equity investment in a real estate development platform — not a direct property acquisition. Unlike individual property ownership, investors are not involved in financing, construction oversight, leasing, or property management. The General Partner is responsible for end-to-end execution, including entitlement, development, lease-up, and exit strategy. Investors participate as Limited Partners, receiving distributions and capital appreciation based on their pro-rata share, without any active involvement or personal liability.

How is this different from a REIT or public real estate stock?
‍Publicly traded REITs offer broad market exposure but are subject to daily volatility, liquidity premiums, and investor sentiment unrelated to asset-level performance. This investment is privately placed, project-specific, and performance-driven. It is not correlated to public equity markets and is intended to provide exposure to physical asset development and value creation. While less liquid, private offerings typically carry enhanced return potential and reduced volatility — attributes often sought by institutional and sophisticated investors seeking portfolio diversification.

What do I actually own or participate in?
‍You will hold a unitized equity interest as a Limited Partner in a development-specific limited partnership. The partnership directly owns and controls the real estate assets under a defined legal structure. Your participation entitles you to a proportionate share of the income distributions and capital events (such as sale or refinance), in accordance with the terms of the limited partnership agreement. You do not own individual units or land titles; rather, you hold an interest in the operating entity that controls the project.

Can I lose my entire investment?
‍Yes — as with any private equity or real estate development investment, there is inherent risk, including the potential loss of capital. Although the project is underwritten based on conservative assumptions and managed by experienced professionals, investment returns are not guaranteed. Market conditions, construction risks, lease-up performance, and capital market shifts can impact outcomes. That said, investors’ exposure is limited strictly to the amount of capital they have invested.

What protections are in place for my capital?
‍Capital is deployed through a limited partnership structure that separates investor liability from project operations. The development process includes contingency planning, third-party insurance, and experienced project execution oversight. Assets are held in the name of the partnership, and all financing is secured at the project level — without recourse to individual investors. The General Partner has a fiduciary responsibility to act in the best interests of the Limited Partners, and formal legal agreements govern how capital is managed and distributed.

‍Am I personally liable for anything — such as construction loans or cost overruns?
‍No. As a Limited Partner, your legal and financial liability is capped at the amount of your investment. You are not personally responsible for debt financing, construction guarantees, or any operating shortfalls. All loan agreements and financial obligations are undertaken by the General Partner or a special-purpose entity created for the project, with no recourse to individual LPs.

Is there insurance on the project?
‍Yes. Comprehensive commercial insurance coverage is maintained during construction and ongoing operations. This typically includes builder’s risk insurance during development and general liability and property insurance post-completion. These policies are secured at the project level to protect against physical and operational risks that could otherwise impact project value.

How do I generate returns from this investment?
‍Investor returns are generated through two primary mechanisms: (1) monthly income distributions from net rental cash flow post-stabilization, and (2) capital appreciation realized at the time of a disposition or refinance of the underlying assets. Distributions and final proceeds are allocated based on each investor’s pro-rata ownership in the partnership, subject to the terms of the limited partnership agreement. All returns are net of fees, project expenses, and reserves.

What is the target return, and how is it calculated?
‍The current project is underwritten to target a net internal rate of return (IRR) in excess of 21%, over a projected hold period of 5 to 7 years. IRR represents the time-weighted annualized return that incorporates both interim distributions and proceeds from a capital event (sale or refinance). The model also considers stabilized net operating income (NOI), cap rate assumptions, market lease-up timelines, and exit pricing. These targets are projections and not guaranteed.

When do I start receiving distributions?
‍Distributions are expected to begin on a monthly basis once each property achieves stabilized occupancy and operating surplus. During the development and construction phases, capital is reinvested into project execution. As assets come online and generate surplus cash flow, distributions will commence and be paid proportionally to all Limited Partners.

Are returns guaranteed?
‍No. All projected returns are estimates based on market assumptions, pro forma modeling, and anticipated execution performance. Real estate investments carry risks related to development, leasing, interest rates, and exit timing. While the investment is structured to optimize downside protection and return potential, no outcome can be assured.

What is my role as an investor?
‍As an investor, you participate as a Limited Partner (LP) in a private limited partnership established to acquire, develop, lease, and manage the portfolio of townhome properties. Your role is entirely passive. You contribute capital to the partnership and receive distributions and profit allocations in accordance with your ownership interest, as outlined in the limited partnership agreement. You are not involved in decision-making, operations, or project oversight.

What is the difference between the General Partner (GP) and Limited Partners (LPs)?
‍The General Partner (GP) is responsible for all aspects of the project, including land acquisition, development, construction management, leasing, financing, and eventual exit. The GP assumes operational and fiduciary responsibility and typically contributes expertise, time, and strategic leadership — as well as a portion of the capital.

‍Limited Partners (LPs) provide the majority of the capital but do not participate in day-to-day decision-making. Their role is financial, and their liability is limited to the amount of their investment.

Who is managing the project?
‍The project is managed by the General Partner and its affiliated team, which includes development professionals, construction managers, and financial oversight personnel. The GP has prior experience managing infill development and larger-scale real estate projects in both Edmonton and Calgary. The team is also supported by a dedicated general contracting entity, which ensures direct control over build quality, cost efficiency, and delivery timelines.

Do I have to be involved in any decisions?
‍No. The General Partner retains full decision-making authority as outlined in the limited partnership agreement. This includes decisions related to budgeting, construction, leasing strategy, refinancing, and exit timing. Investors are not required — or permitted — to participate in operational decisions, allowing for streamlined execution and centralized accountability.

Can I withdraw my investment or exit early?
‍No. This is a closed-end, illiquid private investment. Capital contributed by Limited Partners is committed for the full duration of the investment term and cannot be redeemed on demand. Early withdrawal is not permitted, as investor capital is deployed into long-term development and operating assets that require a full investment cycle to realize target returns. Investors should only commit capital they do not require for near-term liquidity needs.

What happens if I need to exit before the project is complete?
‍There is no formal secondary market for interests in the limited partnership. However, in exceptional cases, a Limited Partner may propose a transfer of their interest to another eligible accredited investor, subject to approval by the General Partner and compliance with applicable securities laws. The General Partner is not obligated to facilitate or repurchase any investor interests prior to the completion of the investment term.

What is the planned exit strategy for the project?
‍The investment is structured as a long-term hold, with an estimated duration of 5 to 7 years. Upon stabilization of the full portfolio, the General Partner will evaluate strategic exit options, including a disposition of the entire portfolio to an institutional or private buyer, or a refinance with capital returned to investors. The decision will be based on prevailing market conditions, asset performance, and the potential to maximize value for Limited Partners.

Is this investment legal and properly regulated in Canada?
‍Yes. This investment is offered in compliance with applicable Canadian securities laws, specifically under exemptions provided in National Instrument 45-106 — typically the Accredited Investor Exemption. These exemptions allow for private capital to be raised from eligible investors without filing a prospectus, provided the offering meets strict legal and disclosure standards. All documentation is reviewed by securities counsel and issued in accordance with the regulatory requirements of the relevant provincial jurisdictions.

What legal agreements will I sign?
‍Investors are required to review and execute a set of offering documents, which generally include a Subscription Agreement, a Limited Partnership Agreement, and a copy of the Offering Memorandum or Term Sheet, where applicable. These documents outline the structure of the investment, investor rights and responsibilities, return allocations, and legal protections. All investors must also complete appropriate investor qualification forms to confirm eligibility under securities regulations.

Do I need legal or financial advice before investing?
‍While not required, it is strongly recommended that prospective investors seek independent legal, accounting, or financial advice before making an investment decision. Private offerings are typically limited to accredited or eligible investors who understand the risks, illiquidity, and legal structure of such opportunities. A professional advisor can help you assess whether this type of investment aligns with your objectives and risk profile.

How do you verify that I’m eligible to invest?
‍All investors must complete a formal accreditation or eligibility questionnaire prior to subscription. This process ensures compliance with Canadian securities laws and confirms that you meet the criteria for participation under one or more recognized exemptions (e.g., Accredited Investor status). Supporting documentation or professional verification may be required depending on the exemption being relied upon and the province of residence.

How is income from this investment taxed?
‍Income received from this investment is generally taxed as passive income, which may include rental income, interest, or capital gains depending on the project’s stage and activity. The exact nature of the income will be reflected in the tax reporting issued by the partnership each year. Investors are responsible for including this income on their personal or corporate tax filings in accordance with Canadian tax law.

Will I receive tax reporting documents?
‍Yes. Investors will receive annual tax reporting, typically in the form of a T5013 (Statement of Partnership Income), which details your share of the partnership’s income, deductions, and any capital gains or losses. This information is required for your Canadian income tax filing. The T5013 is issued by the General Partner or fund administrator prior to the applicable tax filing deadline each year.

Can I invest using a registered account (RRSP, TFSA, etc.)?
‍This particular investment is not structured to be eligible for registered plans such as RRSPs, TFSAs, or RESPs. Investments in private limited partnerships often involve active business income and complex ownership structures that do not meet the CRA’s eligibility criteria for registered accounts. Investors should consult their tax advisor for guidance specific to their circumstances.

Are there tax benefits or deductions available?
‍Depending on the structure and performance of the partnership, investors may be allocated certain tax deductions — such as interest expenses, depreciation, or operating losses — which can reduce taxable income. These allocations are outlined in the T5013 each year. However, investors should seek independent tax advice to fully understand the implications based on their individual tax position.

How will I be kept informed about the progress of the investment?
‍Investors will receive regular updates throughout the project lifecycle, including key development milestones, leasing activity, financial performance, and overall project status. These updates are typically issued quarterly, and may include written reports, financial summaries, and relevant commentary from the General Partner. Major events — such as land acquisitions, project completions, or material market changes — may also prompt interim updates.

Will I receive financial reporting?
‍Yes. Investors will receive periodic financial reports that provide visibility into project-level cash flow, net income, and capital account balances. Annual financial statements for the partnership are also prepared and distributed, which may include a review engagement or audited financials, depending on the scale of the offering and investor base.

Who is managing the project, and what is their track record?
‍The General Partner is responsible for the full execution of the investment strategy. This includes oversight of site acquisition, permitting, construction, leasing, asset management, and exit planning. The development team has experience delivering both infill and larger-scale real estate projects in Alberta, and construction is executed through a dedicated general contracting arm. This vertical integration allows for greater control over cost, quality, and schedule — which is critical in protecting investor capital and achieving projected returns.

What happens if market conditions change or performance deviates from plan?
‍Real estate development involves exposure to market variables including interest rates, construction costs, leasing absorption, and capital market conditions. The General Partner is responsible for managing these risks through contingency planning, cost controls, and strategic timing. In the event of significant deviation from projections, investors will be informed and the General Partner will act in accordance with the project’s best interest, subject to the provisions of the limited partnership agreement.