Tell us about your firm and why you believe your deal was
selected for recognition?
Arlington Street Investments was founded on 3 simple, yet
• Create Real Estate developments that revitalize
and enhance neighborhoods and align with
the values and needs of its tenants.
• Create and maintain investment models
for our valued investment partners that
always align their interests with ours.
• Create a legacy business that is well respected
within the business community.
What were the benefits of the deal to the Dealer/Issuer
The investment structure created to develop our Haiku project 5
years ago performed dramatically better than REIT’s or growth and
momentum Real Estate offerings in the public market. The Haiku
building and investment opportunity has provided strong, positive
cash flow and good yield income resulting in triple digit cash-on-cash returns. Our investors received back 100% of their original
invested capital in Q1 2015 while still owning their original units
which have now tripled from their original investment value. The
return of our investor’s original capital is beneficial for both the issuer
and for our investors as it provides the opportunity for our clients to
reinvest their assets, perhaps into our new projects. This has been
our fundamental growth and investment strategy from day one.
What was the broader impact of your deal? Has your deal
helped the economy or business sector in some way (e.g.
local, regional or national impact in jobs, investment,
Taking the timing into context, we purchased this asset in 2009
which was memorialized by three significant global events such
as the greatest recession since the Great Depression, a global
financial crisis and commercial vacancy rates in Alberta rising
from 0.5% to 18%. While everyone else was running out of the
marketplace as fast as possible, Arlington Street Investments
was running in, and aggressively acquiring good assets.
Our project management team took a derelict building and
completely renovated and repositioned the building while the
marketing team went out and attracted four covenant worthy
tenants. In a small way, our repositioned project spurred on
almost $1 billion in multi-use developments located within 2
blocks of our site. These new projects brought forth hundreds of
jobs, residences, and a significantly higher tax base for the City.
Why do you think other firms should nominate their deals for
the PCMA Private Capital Deals of the Year Awards?
We need to be educating people that the private market is
a place where institutional quality investments exist, where
individual investors have access and opportunities, and where
investors can achieve significant returns, even in a volatile
market. We need to demonstrate that the private markets are a
platform on which quality investment structures can be built to
incentivize issuers to maximize returns for investors, and these
PCMA Annual Awards are a key representation of that.
Winner of the 2015 PCMA Private Capital Markets Deals of the Year Award
2015 Commercial Real Estate Deal of the Year
Arlington Street Investments
Haiku Management GP