Commercial premises

First floor (Banking institution, AAA tenant)
This tenant has been in place since 1994, and the premises were completely renovated in 2016 at a cost of over $370,000. Total leasable area is 3,981 sq.ft., with 2,622 sq.ft. on the first floor and 1,359 sq.ft. in the basement. It should be noted that this surface area is net and officially calculated by an architect.

The tenant has signed a lease extension for an additional 5-year period starting in a few weeks' time on July 1, 2024 and ending on June 30, 2029. **For the 5-year term, the base rent will be $55 per square foot for the ground-floor portion and $22 per square foot for the basement portion (note that this basement portion is fully finished to a high standard, and that a freight elevator provides access via the first floor). In total, this amounts to $174,108 per year, or $14,509 per month. At present, the base rent is $50 for the first floor and $20 for the basement.

**An additional rent is added to the base rent. The tenant is responsible for paying the business tax, 12% of management fees and 47.83% of building operating costs (insurance, energy, maintenance, municipal and school taxes). It should be noted that the tenant must also assume all energy costs for his premises (heating and air-conditioning system independent of the rest of the building), as well as all other operating costs related to his premises. ***For the year 2023, the additional rent represents $88,464, or $33.74 per square foot.

2nd floor (Dental center)
This space has been occupied by a dental center since 1994. The current tenant has been in place since December 1, 2014. The leasable area is 1,499 square feet and was also measured by an architect. The tenant is currently in its 2nd and final renewal option beginning December 1, 2019 and ending November 30, 2024. The base rent is $39.23 per square foot and amounts to $58,800 per year, or $4,900 monthly.

**Additional rent is payable on top of the base rent. The tenant is responsible for paying the business tax. Note that the tenant is also responsible for paying all operating costs related to the premises.

Residential rents

2nd floor: 3-room apartment rented for $1,600 as of July 1, 2024.
3rd floor: Two units (one 6-room and one 4-room) currently occupied by the owner.

All in all, we estimate that on July 1, 2024, the potential annual gross income for this building will be approximately $430,462 and the normalized net income of $271,723 for this building (see broker for full details and expense items). It should be noted that the 2nd-floor premises offer good potential for growth.

*Sales taxes apply only to the commercial portion of the building (see broker).