In this episode, Aaron and Adam are joined by another member of the First National family: Andrew Drexler. He is the Assistant Vice President and possesses a skillset gained from participating in large, complex deals. He has done some of First National’s biggest deals, including The Well in Toronto.

Andrew starts off by discussing construction in the midst of the pandemic, along with why cap rates are not as important as some may think. He gives us a rundown on some of First National’s biggest projects and explains why student housing is an attractive area for investment.

Topics covered include:

• An overview of The Well and its massive scale.
• Demands for amenities from modern renters.
• Managing the capital stack for a development project.
• The challanges of financing mixed-use assets.
• Why small differences in cap rates on new buildings are mostly irrelevant.
• Why real estate financing has become more complicated.
• Why Canada is experiencing a rental construction boom .
• The Humaniti project in Montreal and why it was so complicated.
• The need for affordable housing nationwide.
• Building for the long-term.
• How student housing has evolved into a lucrative asset class.
• The high amount of turnover in student housing and why it’s a good thing.
• How operators are dealing with a dip in international students.
• The healthy spread between cap rates and interest rates with student housing.
• The importance of being a great operator to satisfy the needs of student renters.

More About Our Guest….

Andrew has been a part of the First National Financial commercial team for over 15 years, and has originated more than $4 billion in commercial financing. For Andrew, reputation is everything. He builds his by consistently being a trusted advisor to his clients, adding the value of his honesty and expertise. Andrew has originated debt across the country and across all asset classes. That diversity shapes his perspectives and defines how he evaluates opportunities and identifies the value inherent in a deal. Working at First National, Andrew feels encouraged to put client needs ahead of his own and communicate frankly and honestly. It’s how he’s built his reputation and contributed to First National’s reputation as well.

Industry involvement:  Andrew is a contributor to Canadian Apartment Magazine on topics including new construction financing.

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