Porterdale Mill Lofts Purchase Option
We intend to convert residential units of the Porterdale Mill Lofts into condominiums and put all individual units up for sale at a time in the future when the market so determines. Any existing tenant will be allowed to continue to lease their unit.
At the present time, we offer several incentives to our tenants interested in eventually purchasing their unit .
We are currently offering tenants the right to buy an option, which gives them the ability to purchase their unit for a fixed price set at today's "market value" instead of the fair market value at the future date of conversion. We believe that as Porterdale matures, property values will continue to increase. Tenants who purchase the option to buy at today’s market value could have "instant equity" since their unit could be worth more than the price they paid for it. The option is offered at $2000 and is only valid as long as the tenant continues to lease the loft and is in good standing. While the option allows the tenant to purchase the unit at the set price it does not obligate them to purchase the loft. If a tenant purchases an option, they will be given a multi-year lease that continues until conversion with rent for the unit preset with a 5% annual escalation. All multi-year leases allow the tenant to "sub-lease" their unit should they wish to live elsewhere at any time during their lease. The sub-lease tenant must be approved by the landlord.
25% Rent Credit
All tenants, regardless of whether or not they’ve purchased the option, will be given a credit towards their purchase of their unit equal to 25% of all the rent they have paid during their lease. This credit will continue to grow as long as the resident lives at the lofts and will be availalbe to the resident should they decide to purchase their unit.
Right of 1st Refusal
All current tenants as of the date of conversion, regardless of whether or not they’ve purchased the option, will have the right to purchase the unit they are leasing at the market value prior to that unit being offered for sale to a third party.
A "sub-lease" tenant would not have the rights above to purchase the loft unit. A sub-lease tenant would basically just be similar to a regular tenant in an apartment unit and would just be leasing the unit rather than anticipating ultimately purchasing the loft. The sub-lease tenant is actually leasing from the main tenant rather than leasing from the development itself.