Canadian Real Estate Development Co-GP Investor Mandate with Shane
Canadian Real Estate Development Co-GP Investor Mandate Interview
Real estate developers, family offices with land or distressed property, and investors weighing a co-GP or joint venture with a Canadian developer.
The short version
Shane is a developer and commercial real estate investor based in Calgary, Alberta. He focuses on infill, multifamily, service-based retail and light industrial projects. His main markets are Alberta, Saskatchewan and BC, and he has also done business in Arizona and Texas, including Houston and Dallas. He builds locally. In the US he would look for local expertise and connections, and he could partner with equity investors.
Shane also describes how the market cycle shapes his choices. For about three years, value add deals have been hard to find. He looks at building when he can develop for less than he can buy. His main advice is to name the one critical assumption that must be true for a project to work, then test it with the market. He keeps his deal structures simple.
- 1Research the site and local market
- 2Talk to managers, banks and lenders
- 3Name the critical assumption
- 4Check if achievable rents justify it
- 5Adjust the plan if they do not
What stood out
- Know the asset types and regions. Shane focuses on infill, multifamily, service-based retail and light industrial. His core geography is Alberta, Saskatchewan and BC, with past work in Arizona and Texas.
- Build locally, partner elsewhere. Shane does ground up development locally in Alberta, and maybe BC. In the US he would look for local expertise and connections, and that is where he could partner with equity investors.
- Let the market cycle guide strategy. Value add deals have been difficult to find for about three years. If he can develop for less than he can buy, he is building below replacement cost. When liquidity is tight, he looks more at value add.
- Find the critical assumption. Shane learned from Sam to ask what must be true for a project to succeed. On a half acre infill multifamily site, he spoke with property managers, banks and lenders to find out about demand, rents and unit size.
- Keep the structure simple. Shane keeps his deal structures simple, because a deal that is hard to explain is usually hard to understand.
Quotes from the session
"What is the critical assumption that needs to be true for your development or your property to be successful?."
"If I could develop for less than I can buy, then I'm building below replacement cost."
"If it's hard to explain, then generally it's hard for someone to understand."
From the source
- Shane's critical assumption on one infill project was $210 per square foot, with one bedrooms at 600 to 650 square feet and two bed, two bath units at 875 square feet.
- The infill multifamily site Shane researched was about a half acre.
- Shane says value add opportunities have been difficult to find for about three years.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Canadian Real Estate Development Co-GP Investor Mandate Interview. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around co-GP and LP structures, cross-border investing and tax planning considerations. Do not use AI to write your own legal agreements.
Related questions
- How do I find a joint venture equity partner?Start by naming your bottleneck, whether that is deal flow, investor access or deal setup.
- What is a co-GP in real estate?A co-GP in real estate is a second party who shares the management of a deal with the main general partner.
- How do I structure a JV between a sponsor and capital partner?Start with who does what.
Questions about this video
Where does Shane look for real estate deals?
Shane focuses on Alberta, Saskatchewan and BC in Western Canada. He has also done business in Arizona and Texas, including Houston and Dallas.
What deal structures does Shane prefer?
Shane keeps his deal structures basic and tries to avoid complexity.
What is Shane's main advice for investors working with a developer?
Identify the critical assumption that needs to be true for the project to succeed. Then test it with the market, such as rents and unit sizes, before committing.
Put this into practice with the ready to raise checklist. See all co-gp and joint venture deals resources.
