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Nanaimo Workforce Housing — LP Investment Opportunity | Future Fit Cities
Confidential LP Investment Opportunity · Nanaimo, BC · 2026

Housing the people
who make Nanaimo work.

A 100-unit mass timber workforce housing development — BC Builds funded, Snuneymuxw Territory, built for permanence.

LP Equity Offering BC Builds Funded Mass Timber / Offsite CLT Doughnut Economics Non-Profit JV
7%
Preferred return p.a.
1.28×
Base case DSCR
1.75–2.4×
10-yr equity multiple
$13.5M
BC Builds capital grant
The Problem

Nanaimo's workforce
can't afford to live here.

The nurses at NRGH. The electricians building the Island's housing stock. The teachers in Ladysmith and Parksville. These are the people whose work holds Nanaimo together — and they are being systematically priced out of purpose-built rental housing.

The median Nanaimo household earns $76,000 per year — well below the BC median of $86,000. At the 30% affordability threshold, that household can afford $1,900/month in rent. The average two-bedroom purpose-built rental costs $2,324/month. That $424/month gap is structural, persistent, and growing.

The result is predictable: commutes from cheaper communities, suppressed hiring, strained hospital rosters, and a city that cannot retain the essential workers it needs to grow. This is not a social problem at the margins. It is a structural constraint on Nanaimo's economic future.

2.9%
Overall rental vacancy — below the City's own 3.0% sustainability threshold
CMHC · October 2024
1.3%
3-bedroom family unit vacancy — effectively zero availability
CMHC · October 2024
12,962
New rental units needed over 10 years
City of Nanaimo Interim HNR · 2024
The Opportunity

Four forces converging. A window that won't stay open.

BC Builds capital grant

Up to $225,000/unit for qualifying non-profit rental — reducing the financed amount from $37M to $23.7M and making below-market rents financially viable at a DSCR of 1.28×.

CMHC MLI Select financing

90% LTV · 40-year amortization · 3.5% BC Builds take-out rate. Purpose-built rental at insured terms, with green scoring reducing the CMHC premium from 6.75% to 5.90%.

Snuneymuxw First Nation partnership

Active engagement toward a land contribution or long-term lease on Snuneymuxw territory. The highest-scoring BC Builds application structure. Reconciliation-grounded development.

Mass timber technology

CLT offsite fabrication: 35–40% less on-site labour, 8–12 weeks faster structural assembly, lower CMHC insurance premium. BC's supply chain (Kalesnikoff, Nordic) is mature and local.

The Project

100 homes. One building.
A generation of stability.

A 4-storey mass timber building — designed offsite using cross-laminated timber panels, assembled in Nanaimo — delivering 100 purpose-built rental homes for the city's essential workforce, designed within a Doughnut Economics and Living Systems framework.

All 100 units rented at 80% of market rates. A minimum of 20 units at 20% below market for 35 years, registered as a Section 219 restrictive covenant on title. No ongoing operating subsidy required.

The project is designed from the outset as Project 1 of a replicable series — the design template, BC Builds application framework, and partnership model are all built to transfer to Projects 2 and 3 on Vancouver Island.

Unit typeUnitsTarget rentvs market
1-bedroom30$1,450/mo−20%
2-bedroom50$1,860/mo−20%
3-bedroom20$1,980/mo−20%
Total100Avg ~$1,770/mo−20%

CMHC Nanaimo October 2024 market rents · 80% target

Three-scenario financial model

S1 — Conventional
Stick frame · No grant
Total cost$36.1M
BC Builds grant$0
Amount financed$36.1M
Debt service/yr$1,614K
NOI/yr$1,345K
0.83×
Fails CMHC threshold
S2 — Mass Timber ★
BC Builds · 60 grant units
Total cost$37.2M
BC Builds grant$13.5M
Amount financed$23.7M
Debt service/yr$1,052K
NOI/yr$1,345K
1.28×
Lender viable ✓
S3 — MT + MTP Grant
S2 + $1.5M Mass Timber Program
Total cost$37.2M
Total grants$15.0M
Amount financed$22.2M
Debt service/yr$986K
NOI/yr$1,345K
1.36×
Strongest case ✓

Base opex 33% · Vacancy 5% · Rent at 80% of market · 3.5% interest · 40yr amort · 90% LTV · CMHC minimum DSCR: 1.20×

LP Investment Terms

Patient capital.
Durable returns.

This is not a speculative venture. It is a long-duration, government-supported, asset-backed investment in essential housing infrastructure — with returns structured to reward patient capital rather than short-cycle profit-taking.

Return stream 1
7% p.a.
Preferred return on LP equity — non-compounding, accrues during construction (~16 months), paid in full at take-out financing close.
~$155,000–$190,000 at take-out close (~month 28) · Paid before any residual split
Return stream 2
~$88K/yr
Annual cash distribution — 30% of residual after debt service, from occupancy. Modest yield by design; primary return is in appreciation.
~3.0% cash yield on invested equity · Ongoing from occupancy
Return stream 3
1.75–2.4×
10-year equity multiple. Asset value compounds as NOI grows 2.5% p.a. and the BC Builds mortgage amortises over 40 years.
LP equity value yr 10: ~$2.94M · yr 15: ~$4.41M
Total 10-year return (LP share)
~$3.9–4.9M on ~$2.65M invested

Return summary

ComponentTimingLP amount (30% share)Nature
Preferred return (7% p.a.)Month ~28~$155–190KCash — paid first
Annual cash flowOngoing from occupancy~$88K/yrCash
LP cash yield on equityAnnual~3.0%Yield
Equity value — year 10Refinance / sale~$2.94MEquity
Equity value — year 15Refinance / sale~$4.41MEquity
10-year total returnYear 10~$3.9–4.9MOn ~$2.65M invested

DSCR sensitivity — interest rate × rent level

Scenario 2 base case (★). CMHC minimum 1.20×. Green = lender viable.

Rent \ Rate 3.0% 3.5% ★ 4.0% 4.5% 5.0% 5.5%
95% of market1.64×1.52×1.41×1.31×1.22×1.14×
90% of market1.56×1.44×1.33×1.24×1.16×1.08×
85% of market1.47×1.36×1.26×1.17×1.09×1.02×
80% ★ base1.38×★ 1.28×1.18×1.10×1.03×0.96×
75% of market1.30×1.20×1.11×1.03×0.96×0.90×
70% of market1.21×1.12×1.04×0.96×0.90×0.84×
≥1.35× Strong
1.20–1.34× Viable
1.05–1.19× Marginal
<1.05× Fails
Capital Structure & JV

A stack built on
public partnership.

Four capital sources — each with a distinct risk profile. LP equity sits senior in the private capital layer, protected by the $13.5M BC Builds grant and government-insured debt below it.

BC Builds capital grant
60 units × $225K · 35yr forgivable mortgage · NP operator required
$13.5M
36%
CMHC MLI Select mortgage
3.5% · 40yr amort · 90% LTV · insured at 5.90%
$21.4M
57%
LP equity — passive
Registered on title · 7% preferred return · 30% co-ownership
~$1.6–2.0M
~5%
GP equity — Future Fit Cities
Design & strategic lead · 30% co-ownership · advisory fee
~$0.7–1.0M
~2%

Total project cost ~$37.2M · Financed after grant: ~$23.7M

LP structural protections

  • M
    Registered on title
    LP equity registered as a title charge — not held contractually — protecting capital in the event of NP society difficulties or governance dispute.
  • M
    Preferred return paid first
    7% p.a. (non-compounding) accrues and is paid in full before any residual cash or appreciation is shared.
  • M
    BC Housing oversight
    Section 219 covenant + long-term operating agreement with BC Housing provide independent, government-level accountability.
  • M
    Defined exit pathway
    Buyout by NP society at years 15–20 at independent appraisal — a formal, contractually defined LP liquidity event.
  • S
    Annual audited financials
    Full financial transparency including audited accounts, BC Housing compliance reports, and capital reserve fund statements.

M = Must-have (non-negotiable) · S = Should-have

Risk Profile

Six risks.
Five are low. One is sequenced away.

BC Builds grant approval
Medium
LP capital raise deferred until BC Builds in-principle approval confirmed. Application structured to score at the top of every evaluation criterion.
Interest rate increase
Low
DSCR viable to ~4.4% (+90 bps headroom). 40-year take-out rate locked at financing close. Long-duration asset; near-term rate risk managed.
Construction cost overrun
Low
9% contingency in budget. BC Builds financing covers 100% of cost-to-complete. LP equity not called for overruns. Mass timber offsite precision reduces site unknowns.
Vacancy / demand risk
Very Low
DSCR viable through 9–10% vacancy — 3× current Nanaimo rate (2.9%). Below-market workforce housing in a supply-constrained market has essentially no occupancy risk.
LP liquidity
Medium — defined
Illiquid 10–20yr horizon. Defined buyout at yr 15–20 at independent appraisal. LP interest registered on title. Not suitable for sub-10yr capital.
Operating cost inflation
Low
Mass timber envelope performance supports 33% opex base. DSCR viable at opex up to ~37%. BC Housing operating agreement creates long-term accountability.
Site Shortlist

Five active MLS listings
screened against the business plan.

Assessed against: multifamily zoning or rezoning potential, 0.3–5 acres, transit access, proximity to NRGH and education employment, and BC Builds application fit.

1
2019 Bowen Rd & 1985 Island Diesel Way
MLS# 982740 · Central Nanaimo · 460 Realty
2.69 acres (117,045 SF) of flat, fully serviced land. COR2 zoning permits multifamily up to 5 storeys, 1.75 FSR with city bonuses. Bowen Road corridor is Nanaimo's most transit-connected arterial. City has already supported a 22-unit concept design on the site. Full plans available to qualified purchasers. The right size, the right zoning, no rezoning risk.
COR2 Zoned Fully serviced Transit frontage No rezoning risk 2.69 acres
Asking price
Contact agent
Best overall fit
2
5300 Williamson Rd
MLS# 988800 · North Nanaimo · eXp Realty
4.89 acres of predominantly flat land in North Nanaimo, directly across from Frank Ney Elementary and adjacent to Harry Wipper Park. OCP designated low-density residential — rezoning required, but the City's Housing Target Order (4,703 units by 2029) creates strong incentive to support density. Strong family-housing optics for BC Builds. Pursue concurrently with a City pre-application meeting.
Rezoning required 4.89 acres flat Schools adjacent North Nanaimo
Asking price
$3,980,000
3
212–218 Fry St
MLS# 982970 / 982964 · Old City Quarter · Walk Score 72
Two adjacent COR3-zoned lots in the Old City Quarter — Nanaimo's most permissive zoning, explicitly permitting apartment buildings and condos. Each lot ~7,000 SF; too small alone for a 100-unit project, but a compelling downtown land assembly anchor. NRGH proximity. At $450K per lot, land cost is very low. Worth investigating adjacent parcel availability for assembly.
COR3 — max density Land assembly needed Downtown location Walk Score 72
Combined asking
~$900K
4
2104 Northfield Rd
MLS# 986460 · Central Nanaimo · ~4.5% cap rate
12,131 SF (0.28 acre) with rare COR2 zoning in Central Nanaimo, currently generating $4,250/month in rental income (~4.5% cap rate). Too small standalone for a 100-unit project, but a strong land assembly anchor — rental income offsets carry costs while you option adjacent parcels along Northfield Road. COR2 zoning and central location make it a useful building block.
COR2 Zoned 0.28 acre Assembly target Income producing
Asking price
$1,024,900
5
6201 Oliver Rd
POA (Colliers) · Uplands · DP-approved 35-unit 6-storey
Development permit approved for 35 units across 6 storeys with a 44-stall basement parking garage in the Uplands district, 7km from downtown. The existing DP represents $300–500K in design and approval costs already spent. The limitation is 35 units vs. the 100-unit target. Most useful as a Phase 1 standalone or basis to renegotiate higher density with the City. Colliers listing — contact for pricing.
DP approved 35 units (below target) Uplands / North 6-storey permit
Asking price
POA
Implementation Plan

28–30 months to occupancy.
Three critical path milestones.

Now — Month 2 Critical path
Formation & application
JV term sheet agreed · NP society confirmed · Snuneymuxw engagement initiated · Site option agreement · BC Builds Expression of Interest submitted
Month 4–9 Critical path
BC Builds application & approval
Full application submitted · BC Housing in-principle commitment · Grant quantum confirmed · LP capital raise commences here
Month 10–14 Critical path
Financing close
Building permit · BC Builds construction loan · CMHC insurance commitment · LP equity close · JV executed · CLT fabrication ordered
Month 14–28
Construction
Site prep · Foundation · CLT structure assembly · Envelope · MEP · Finishes · Commissioning
Month 28–32 LP returns begin
Occupancy & stabilisation
Occupancy permit · Tenant selection · CMHC take-out close · Advisory fee final draw · Preferred return paid · Operating agreement active

Why LP commitment is de-risked

The formal LP capital raise commences only after BC Housing issues an in-principle approval confirming the $13.5M grant quantum. By the time you are asked to commit, the largest single uncertainty in the financial model has already been resolved.

LP equity is not drawn until construction financing closes (month 10–14). During the application and design period, the project is funded by GP pre-development capital — so LP exposure is limited to the post-approval phase.

The sequencing matters
Grant confirmed → LP raise → construction loan close → build → preferred return paid. Each milestone gates the next. LP capital is committed and deployed in the most de-risked position in the sequence.
The Team

Future Fit Cities

Greg Hart
Founder · Equity Investor · Design & Strategic Lead
Greg brings former public company CFO discipline to the development of workforce housing in communities where the gap between what essential workers earn and what housing costs has become a structural barrier to economic and social health. Future Fit Cities integrates rigorous financial analysis with Doughnut Economics and Living Systems design philosophy — not as aspirational language, but as an operational design brief that generates financial performance through BC Builds scoring, CMHC premium reduction, and long-term tenant retention.
Based in Nanaimo, BC, with active relationships across the City of Nanaimo planning and development ecosystem, BC Housing, and the Snuneymuxw First Nation.
futurefitcities.com · Nanaimo, BC

What we're looking for in an LP

  • ✓
    Patient capital horizon
    10–20 year hold. Primary return is equity appreciation, not yield. Formal exit at year 15–20.
  • ✓
    Accredited investor status
    BC securities law compliance. Offering structured under accredited investor exemption or offering memorandum — your independent legal advice required.
  • ✓
    Values alignment
    This project is designed to do what a city needs. Impact orientation isn't required, but it helps when the going gets slow.
  • ✓
    Capital commitment of ~$1–2M
    Seeking 1–2 LP investors. Total LP equity ~$1.6–2.0M. One investor for the full amount or two at ~$800K–1M each.

Ready to learn more?
Request the full package.

Request LP Package → Schedule a call
Future Fit Cities · Greg Hart greg@futurefitcities.com · 403-870-4748 · Nanaimo, BC · 2026
This page is a confidential investor overview and does not constitute an offering memorandum, prospectus, or solicitation of investment under any applicable securities legislation. All financial projections are based on planning-level assumptions and are subject to change. Prospective investors should seek independent legal, tax, and financial advice. The information contained herein is not for distribution without the written consent of Future Fit Cities.