Addy Invest is a real estate investment platform designed to make commercial property investing accessible to everyone. By offering fractional ownership, Addy allows individuals to invest as little as $1 into premium real estate opportunities. This makes it simple for investors of all experience levels to build a diverse portfolio without the usual barriers of large capital requirements or property management duties. With its focus on transparency, user-friendly tools, and access to high-quality properties, Addy is a compelling option for those looking to enter the real estate market in an affordable and convenient way. Addy by the Numbers: Founded: 2017 Capital Raised: $25 Million+ in investor capital Real Estate Transaction Volume: Over $1 Billion Offerings: 40+ real estate opportunities launched Investor Base: 30,000+ investors What Addy Offers: User-Friendly Platform: Addy’s platform makes it easy to browse, invest, and track real estate opportunities. With a simple interface, investors can access detailed property data, invest seamlessly, and monitor their portfolios in one place. Low Minimum Investment: Starting at just $1, Addy is committed to making real estate investing accessible to everyone, regardless of financial background. High Transparency: Investors can review clear, detailed information on each property, including risks, property management plans, and financial projections. This allows for informed investment decisions. Addy’s Role in General Partner (GP) Offerings: Software: Addy’s platform streamlines the entire investment process, from onboarding investors to handling capital deployment. It manages investment transactions, stores important documents, and facilitates smooth communication between GPs and investors. Compliance: Addy ensures all investments meet Canadian securities regulations by partnering with licensed Exempt Market Dealers (EMDs) to vet each opportunity. This guarantees that offerings on Addy’s platform adhere to the highest legal standards. Tax Filings: Addy simplifies tax reporting by providing investors with necessary documentation, such as T5 slips, making it easy to manage income from real estate investments. Investor Relations: Addy acts as the liaison between investors and GPs, ensuring ongoing communication. Investors receive regular updates on property performance, financial distributions, and any significant developments. By taking care of compliance, tax reporting, and investment management, Addy allows investors to focus on growing their wealth without the hassle of direct property management or complex regulations. With Addy, investing in real estate has never been easier or more accessible.

Strategic Advantage in Overlooked Markets Secondary and tertiary markets present a unique and often undervalued opportunity for savvy investors. While large institutional investors typically focus on primary markets, smaller cities and towns are frequently overlooked, creating an entry point for those willing to roll up their sleeves and engage in deals beyond the reach of individual "mom and pop" investors. These markets offer high-quality properties at attractive prices, often below replacement cost, due to the additional management effort required, lower liquidity, and fewer institutional buyers. This pricing advantage enables investors to acquire assets with higher yields, presenting the potential for significant returns on investment. Superior Valuations and Cash Flow Potential One of the most compelling advantages of investing in secondary and tertiary markets is the potential for better valuations. Properties in these markets are typically valued lower and offer higher capitalization (CAP) rates compared to their counterparts in major cities. This means that investors can achieve higher cash flow, which is crucial in navigating economic cycles and managing rising interest rates. While properties in larger markets are often "priced to perfection," leaving little room for error, those in smaller markets offer a cushion that allows for greater financial stability and resilience. Leveraging Proven Strategies in Untapped Markets Investors in secondary and tertiary markets can capitalize on strategies that have proven successful in major cities but have yet to be implemented in smaller communities. Techniques such as digital billboards, de-malling (repurposing mall spaces), self-storage containers, and cell towers can be adapted and introduced into these markets, providing a first-mover advantage. By bringing these innovations to smaller markets, investors can position themselves as leaders, benefiting from the early adoption of high-impact strategies. The Benefits of Being a Big Fish in a Small Pond Investing in smaller markets allows for rapid reputation building and easier access to high-quality deals. In these environments, investors can quickly learn the nuances of the local market, build strong relationships, and establish a reputation as a key player. This visibility and influence make it easier to attract deals, talented professionals and partners, creating a strong support network that is often harder to cultivate in larger, more competitive markets. Reduced Competition and Value-Adding Opportunities The reduced competition in secondary and tertiary markets not only makes it easier to acquire properties but also simplifies the process of finding tenants. Many value-adding strategies, such as onsite amenities and energy efficiency improvements, have not yet been applied to properties in these markets. For example, a simple upgrade to LED lighting can yield significant energy savings with a short payback period, an opportunity that has largely been exhausted in larger cities where major players have already captured these gains. This lack of competition for both properties and tenants allows investors to implement cost-effective improvements that can significantly enhance property values and tenant satisfaction.

The Future of Fractional Ownership in Real Estate As technology continues to evolve, the concept of fractional ownership is positioned to revolutionize the real estate market. Platforms like Addy are making it possible for everyday investors to purchase fractional shares of properties, democratizing access to the type real estate investments that were once only available to high-networth individuals and institutions. We believe that as this technology advances, it will unlock the true value of income streams in secondary and tertiary markets, accelerating their appreciation. When property ownership becomes as liquid and accessible as trading stocks with the click of a button, we expect markets with strong cash flows—often found in smaller cities—to see significant valuation increases. This could narrow the valuation gap between primary and secondary markets. Global investors seeking Canadian real estate exposure might favor higher returns from a 10% CAP rate deal in New Brunswick over a 5% CAP rate deal in Alberta, further driving demand, value and liquidity in these smaller markets. In conclusion, secondary and tertiary markets offer a compelling opportunity for real estate investors seeking high returns, better valuations, and reduced competition. By leveraging proven strategies from larger markets, building strong local relationships, and capitalizing on the future of fractional ownership, investors can unlock significant value in these often-overlooked markets. As the real estate landscape continues to evolve, those who position themselves in these markets today will be well-placed to benefit from the next wave of growth and innovation.

Why Invest in Commercial Real Estate & Office? At this stage in the cycle, we believe that investing in office real estate is a strategic and wise decision, despite the ongoing discussions around work-from-home trends. The negative sentiment surrounding office space is over-exaggerated, driven by media narratives that focus on extreme cases in primary markets rather than the broader fundamentals and the future outlook of the sector. We've seen similar scenarios before—like with Airbnb, which was thought to completely replace traditional hotels. Yet, quality hotels in prime locations continue to thrive. The same is true for well-located office real estate. While demand may decrease for lower-quality spaces, well-located and affordable office buildings remain attractive to tenants. Many large companies are reversing their work-from-home policies, recognizing that in-person collaboration is crucial for productivity, innovation, mentoring new staff, and maintaining company culture. These companies are bringing employees back to the office, signaling a strong belief in the enduring value of physical office spaces. Office real estate isn’t obsolete; it’s evolving. The key is to focus on quality properties in prime locations—assets that will continue to be in demand. As populations and businesses grow, so does the need for office space. However, we’re witnessing a shrinking supply of office buildings, with many being demolished or converted into residential units, and very few new developments coming online. We've reached a tipping point where the costs to build new office structures are so high that new construction is an uneconomical decision given the market rents achievable in existing buildings. This further restricts future supply growth. This creates a perfect storm—existing inventory is shrinking, demand is rising, and new supply remains flat. While others retreat from the office sector, we see an opportunity to secure valuable properties at favorable prices, attract strong tenants, and benefit from rising rents and stable cash flows. Investing in office space now is a strategic move that may offer stability, and growth potential. On the other hand, the risks associated with residential real estate are largely political. Issues like rent caps, rent moratoriums, and the negative sentiment vilifying residential landlords are being used by politicians to secure votes. In contrast, the commercial real estate sector operates on business-driven, less emotional transitions between tenants and landlords, effectively sidestepping the politically motivated challenges and risks in residential. Commercial real estate could offer more stable and predictable cash flow due to long-term leases and significant tenant improvements, resulting in lower turnover rates and potentially less volatile cash flows compared to residential properties. Moreover, residential real estate is currently the hot topic in Canada. Many investors, including those with little to no experience, are rushing into the development space, often relying on the MLI Select loan program to get projects and loans approved. We see this as highly risky, the achilles heel of the strategy as the business model depends on a single lender—CMHC, the government—who can change requirements at any time, just as they did during COVID by preventing equity take-outs on refinancings. Additionally, we expect a significant increase in residential supply to hit the market over the coming years. While vacancy rates are currently at record lows, signaling an undersupply, we believe that the residential market is priced to perfection and therefore is not aligned with the direction of the cycle we prefer to enter—especially when returns are projected based on the speculation of future values and construction costs, which are beyond our control. It's no secret that office space is currently a contrarian investment in real estate, but for the reasons mentioned, we’re bullish on the long-term potential of well-located, stabilized office properties purchased well below their replacement cost, which offer strong, in-place cash flow. Check out the Yahoo Finance article where our Managing Partner, Spencer Riche, shares insights on R2's long-term outlook and predictions for the office real estate market: Link Here

Equivesto is an Exempt Market Dealer (EMD) and equity crowdfunding platform based in Canada. It facilitates capital raising for businesses and investment opportunities by allowing companies to offer shares or equity to everyday investors through regulated online crowdfunding campaigns. Equivesto specializes in helping startups and businesses raise capital while ensuring full compliance with Canadian securities laws. How Equivesto is Involved in the Process: For your crowdfunding investment offering in commercial real estate, Equivesto plays a critical role as the licensed Exempt Market Dealer (EMD). Here's how they contribute to the process: Regulatory Compliance: Equivesto ensures that all aspects of the offering comply with Canadian securities regulations, protecting both the company and the investors. They conduct due diligence, vet the investment opportunities, and verify the legitimacy of each offering. Investor Accreditation: Equivesto handles the process of verifying whether potential investors meet the necessary requirements to invest in private market offerings. This includes determining if investors qualify as accredited or fit within certain exemptions under Canadian laws. Fundraising Platform: Equivesto’s platform acts as the central location for handling the crowdfunding campaign, allowing investors to review the details of the offering, make investments, and receive updates. They manage the transaction process from start to finish, ensuring security and transparency. Investor Communication and Reporting: Equivesto manages investor relations, ensuring that investors receive timely updates and necessary documentation, including tax forms, investment performance reports, and legal filings. Through their involvement, Equivesto ensures that the investment process remains smooth, compliant, and transparent for both you as the project creator and the investors participating in the offering.