Business Model
Mainstreet is a publicly-traded (TSX) residential real estate corporation headquartered in Calgary. We buy under-performing mid-sized apartment buildings at low cost. We improve them, often dramatically, before placing them back on the market at rates that reflect their increased value. Mainstreet's goal is to become Canada's leading provider of affordable mid-market rental accommodations, typically properties with fewer than 100 units. We pursue a six-step Value Chain business model:
- Acquisition: Identify and buy under-performing rental units at prices well below replacements costs.
- Capital Improvements: Increase the asset value of Mainstreet's portfolio by renovating acquired properties
- Operational Efficiencies: Minimize operating costs through professional management, efficient technology, and energy-saving equipment.
- Value Enhancement: Renovate & reposition properties in the market. Improved building and a higher level of service equates to higher rents while building customer loyalty.
- Financing: Maintain a sound capital structure with access to capital markets.
- Divestitures: Occasionally sell mature real estate properties to redirect capital into newer, higher potential properties.