JSK Developments · Seed Capital Round
Invest in the launch of a two-project Toronto real estate platform.
JSK Developments is raising seed capital to launch an integrated development, construction management, and property management platform focused on 999 Danforth and a premium Toronto loft conversion strategy.
Project 1
999 Danforth
Rental Development
~25-storey purpose-built tower · ~200,000 sf · Subway corridor
Project 2
Loft Conversion
Premium Furnished Platform
Distressed acquisitions · HNW & executive tenants · ~$100M target
Phase
18-Month Launch
Corporate & Capital
Operating runway · Due diligence · LP capital assembly
Preliminary | Confidential | For Discussion Purposes Only | Not an Offering Memorandum
Seed Capital Target
$500K–$1M
Operating Runway
18 Months
999 Danforth Est. TPC
$130M–$175M+
Loft Portfolio Target
~$100M
Est. Danforth Platform Fees
$13M+
The Investment Thesis
Why JSK. Why Toronto. Why now.
Supply Crisis
Toronto faces a structural housing deficit of 300,000+ units. Purpose-built rental vacancy sits below 3% (CMHC 2025). New supply cannot keep pace with 150K+ new residents annually.
Premium Demand
The executive and HNW furnished loft segment is critically underserved. Premium furnished rent commands 2–3× standard residential rates from a corporate, entertainment and HNW tenant base.
Platform Advantage
Vertical integration — Development, Construction, Property Management — preserves margin in-house and generates fee income at every stage of the project lifecycle.
Timing Advantage
Seed now secures the 999 Danforth land option before planning approval. Loft acquisitions are sourced at distressed pricing while the market is soft. Construction starts as rates normalize.
What Your Capital Funds
Seed capital, transparently allocated.
An 18-month operating budget of approximately $693,000 funds the corporate launch, 999 Danforth due diligence, and loft platform sourcing. Capital is deployed in tranches tied to milestone achievement.
- Corporate entity setup (Dev Corp, Constr. Mgmt Corp, Property Mgmt)
- Legal, accounting, insurance and admin
- 999 Danforth due diligence, planning, ESA / geotech
- Loft pipeline sourcing and first acquisition prep
- Investor materials and capital raise process
- 18-month operating runway
18-Month Operating Budget
~$693,000 illustrative
$450K — Jared K. + Ray M. + contractors
$90K — entity formation + ongoing
$45K
$63K — D&O, software, admin
$27K — materials and events
$18K
Buffer over 18-month runway
Corporate burn is <5% of estimated 999 Danforth platform fee income over project lifecycle.
Conceptual visualization — not final architectural rendering.
Project 01
999 Danforth
Purpose-built rental tower · subway corridor
~25
Storeys
~200K
Sq Ft
$10M
Land Offer
75%
VTB @ 5%
- Land Deal$10M purchase with 75% Vendor Take-Back at 5%. 18-month conditional / firm period.
- Seed PhaseDue diligence, planning consultant & architect, ESA + geotech, rezoning application, LP capital assembly.
- StrategyLong-term yield hold — primary metric is stabilized NOI yield on equity, not development flip.
- Illustrative Economics~$6.7M/yr stabilized NOI · ~$148M stabilized value at 4.5% cap (illustrative · subject to diligence).
- Construction Cost$625/sf conservative basis — top of verified Altus 2025 GTA high-rise range. Stress tested to $825/sf.
Project 02
Loft Conversion Platform
Premium furnished. HNW & executive. Below replacement cost.
Acquire distressed or underutilized Toronto loft buildings, renovate into premium furnished rentals, and lease to executives, entertainers, athletes, HNW individuals, and corporate relocation tenants on 3–24 month stays.
2–4
Acquisitions (18mo)
$200/sf
Acquisition Target
$100M
Portfolio Target
- Acquire distressed loft stock at below-replacement-cost pricing
- Premium fit-out, furnishing, and operations in-house
- Tenant base: executives, entertainers, athletes, HNW, corporate relocation
- First renovation cohort complete and leased by month 15–18
- Proof-of-concept assets validate platform before scale-up
Conceptual visualization
Conceptual visualizationIllustrative Single-Asset Economics
~$11.3M
All-in cost
~$2.58M
Est. NOI
~$47M
Est. exit value
5.5%
Exit cap
All loft figures illustrative. Rent assumptions require market validation before LP capital raise.
Platform Advantage
One integrated platform. Fee income at every stage.
4% of TPC
Development Co.
Plans, permits, approvals. Project execution from land to delivery.
5% of hard costs
Construction Mgmt.
In-house cost and schedule control. Preserves margin vs. third-party CM.
~5% of EGI
Property Mgmt.
Operates the furnished loft portfolio. Recurring annual income.
Illustrative — 999 Danforth
Lifetime platform fees
~$6.9M+
Dev Mgmt (4% TPC)
~$6.25M+
Construction Mgmt
~$500K+/yr
Property Mgmt (ongoing)
≈ $13M+ over project lifecycle. Illustrative · subject to final terms, structuring, and project execution.
18-Month Execution Roadmap
From seed capital to execution in motion.
Months 1–6
- M1–2Corporate setup & legal
- M1–3Seed capital deployment
Months 7–12
- M8–10LP/GP capital raise launch
- M6, 12Investor milestone reports
Months 13–18
- M18Full reporting package
- M18End-of-seed summary
Months 1–6
- M1–2Offer executed · conditional period
- M2–3Planning & architect commissioned
- M5–6Environmental / soil studies
Months 7–12
- M7–9Rezoning / site plan application
- M8–10LP/GP equity raise
Months 13–18
- M14–16Construction lender engagement
- M15–18Planning approval / land close
Months 1–6
- M1–6Pipeline sourcing & screening
- M4–63–5 LOIs shortlisted
Months 7–12
- M6–9Asset 1–2 acquisition
- M9–12Renovation cohort 1 begins
Months 13–18
- M12–14First tenant in place
- M15–18Leasing & tenant acquisition
All milestone dates are estimates. Actual timing depends on planning process, market conditions, and execution.
Investor Return Pathway
How returns are intended to work.
All figures targeted and illustrative. Subject to diligence, legal structuring, project execution, and market conditions. No returns are guaranteed.
Option A
Priority Loan / Note
- StructureSecured loan to JSK Developments Inc.
- InterestTo be negotiated (est. 8–12% p.a.)
- RepaymentFrom first project fee income (dev mgmt, constr. mgmt)
- Term5 years or until project refinance
- SecurityPersonal guarantee and/or assignment of fee income
Option B
Seed Equity
- StructureEquity stake in JSK Developments Inc. (Operating GP)
- UpsidePro-rata participation in GP fee income and promote across all projects
- LiquidityReturn via dividends, sale, or future liquidity event
- RiskHigher risk · higher upside · subordinate to debt
- TimingNo fixed repayment date
LP Context — following seed phase
Project-level LP structure
5%
Preferred return
100%
Capital return at exit
Long-term
Appreciation at stabilization
Illustrative · subject to final offering documents. Targets are not guarantees.
Risk Factors & Mitigants
Material risks. Disclosed up front.
Not an exhaustive risk list. Investors should conduct independent due diligence and seek independent legal, tax, and financial advice.
Risk
Detail
Mitigant
Planning / Approval
25-storey rezoning may face community or City opposition; approval timelines uncertain.
→ Site aligns with Official Plan intensification policies. Experienced planning team. Fallback: reduced-density scheme.
Construction Cost Overrun
Toronto ICI costs volatile since 2019. $625/sf base may increase.
→ Conservative base ($625/sf) + stress tested to $825/sf. In-house construction mgmt. Fixed-price contract target.
Interest Rate / Financing
Rising rates increase construction loan cost; CMHC approval timing uncertain.
→ CMHC MLI Select explored as upside. Sensitivity modelled at 5.5–8.0%. Fixed VTB at 5%.
Lease-up / Vacancy
Slower lease-up post-completion increases carrying costs.
→ Danforth PBR vacancy <3% (CMHC 2025). Pre-leasing begins 6+ months before completion. Loft rent phased.
Capital Raise Execution
Failure to raise LP/GP equity on timeline delays project. Seed investors bear pre-approval risk.
→ 18-month seed runway. Multiple tranches reduce concentration. Staged capital deployment.
Loft Rent Assumption
$12/sf/month furnished assumption may not be achievable; market effective rents lower.
→ Even at $7/sf, loft model shows positive NOI above all-in cost. Sensitivity analysis in proforma.
Regulatory / Securities
Capital raise from outside investors requires OSC prospectus exemptions.
→ Engage exempt market dealer or securities counsel. Offering Memorandum prepared if OM exemption used.
Principal Concentration
Platform depends on Jared K. and Ray M. Loss of either is a material risk.
→ Key-person provisions in LP/seed agreements. Business continuity plan to be documented.
Next Steps
A measured path to capital deployment.
01
Introductory Call
30–45 minute conversation with the principals to align on fit and criteria.
02
NDA & Materials Access
Execute NDA to access the full proforma, construction cost analysis, and supporting documents.
03
Independent Due Diligence
We facilitate access to advisors and site visits. Independent legal, tax, and financial review encouraged.
04
Seed Structure Agreement
Legal counsel prepares seed note or equity subscription documents.
05
Capital Deployment
Capital deployed in tranches tied to milestone achievement. Formal reporting at months 6, 12, and 18.
Request Investor Access
Begin the conversation.
Submit the form to request the investor package. A principal will respond within 48 hours to schedule an introductory call and exchange NDA materials.
Principal — Development & Construction
Jared K.
jared@jskdevelopments.ca
Principal — Capital Markets & Strategy
Ray M.
ray@jskdevelopments.ca
Web
www.jskdevelopments.ca