LOCATION: 5235 50th Street, Caroline, Alberta
PURCHASE PRICE: $940,000
DATE PURCHASED: October 31st, 2017
CASH ON CASH RETURN: 10.25% (After Management)
PARK DETAILS: 39 Rental Stalls & On-site House with Basement Suite
This property was acquired using a tax-free rollover called a ‘Section 85’. The owners had it for nearly 20 years and were concerned about the tax implications triggered by a sale. By utilizing a Section 85 the sellers received the same amount of cash they would have if sold through traditional means ($600,000) plus they were issued $340,000 Legacy Common Shares which would have originally been paid in taxes. We ended up owning a great cash flowing property, the sellers received the cash they hoped for plus additional shares which are growing, creating cash flow and allow for them to still have a piece of what they worked so hard managing all those years. The Realtor® got a sale, the sellers are diversified and in a passive position and Legacy is of course pleased with annual cash on cash return of 10.25% after management.