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Address is c/o Grassroots Realty Group 411 N Railway St SE 15 Room Serviced Apartment Medicine Hat, AB T1A 2Z3 $5,800,000 CAD ($386,667 CAD/Room)
Investment Highlights
- Well established business with proven success
- no deferred maintenance on building or equipment with many recent upgrades
- Strong history of residential occupancy
Executive Summary
What you’re buying:
A large-format mixed-use building (~28,000 sf) that pairs a proven hospitality venue (bar/restaurant/entertainment/catering/events) with a built-in residential rental component (13 apartments).
A legacy operation with continuous history since 1980, positioned as a community hub and destination venue.
Why it’s compelling:
Multiple income engines under one roof: food & beverage + live entertainment + private events/buyouts + off-site catering + apartment rentals.
Residential units add stability and reduce reliance on bar/restaurant sales alone.
Heavy reinvestment has already been done—buyer steps into an asset with a “reset” capital timeline instead of inheriting deferred maintenance.
Lease structure (key point):
Single-tenant, TRUE NET lease.
Landlord receives fixed rent: $240,000/year.
Tenant is responsible for all operating costs, maintenance, and management.
Tenant controls and keeps ALL revenue produced inside the building—including restaurant/bar, catering, events/venue income, and the apartment rental income.
Result: simple, predictable ownership profile for an investor; operational upside remains with the operator.
Residential component (stability + demand):
13 apartments total.
8 units are brand new via full demolition/rebuild; 5 additional units updated.
Delivered completed prior to sale.
Upgrades include modern systems (electrical/plumbing/mechanical), improved life-safety separation, sound attenuation, kitchenettes, laundry, and modern finishes.
Long-term tenants reside, supporting stabilized occupancy and ongoing rental demand.
Capital program already executed (risk removed):
$600,000 commercial kitchen expansion completed in 2025 (capacity + efficiency; supports dine-in and catering).
~$2.44M residential demolition/rebuild program (major modernization of the residential component and related systems).
~$300K fire rating and exiting upgrades (life-safety compliance focus).
Total reinvestment since 2024 appraisal: $3.3M+.
Buyer takeaway: you’re not funding the heavy lift—major work is being completed pre-close.
Value framing (simple narrative):
Heritage building (100+ years) with modernized infrastructure—character retained, functionality upgraded.
“Below replacement cost” story: substantial capital has been put in versus prior appraised condition, without the buyer taking on construction/permitting/overrun exposure.
Clean closing / liabilities:
No third-party operating debt.
Only leased equipment noted: two dishwashers.
Shareholder loans eliminated at closing (no lingering lender entanglements post-close).
Who this fits:
Owner-operator who wants real estate + operating business control.
Hospitality group seeking a flagship venue with residential income diversification.
Investor who values fixed net rent and simplified management (true net), with a tenant operating all business lines and rentals.
Financial Summary (Pro Forma - 2026) Click Here to Access |
Annual (CAD) | Annual Per SF (CAD) |
|---|---|---|
| Gross Rental Income |
$99,999
|
$9.99
|
| Other Income |
$99,999
|
$9.99
|
| Vacancy Loss |
$99,999
|
$9.99
|
| Effective Gross Income |
$99,999
|
$9.99
|
| Taxes |
$99,999
|
$9.99
|
| Operating Expenses |
$99,999
|
$9.99
|
| Total Expenses |
$99,999
|
$9.99
|
| Net Operating Income |
$99,999
|
$9.99
|
Financial Summary (Pro Forma - 2026) Click Here to Access
| Gross Rental Income (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Other Income (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Vacancy Loss (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Effective Gross Income (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Taxes (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Operating Expenses (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Total Expenses (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Net Operating Income (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
Property Facts
| Price | $5,800,000 CAD | Lot Size | 1.02 AC |
| Price Per Room | $386,667 CAD | Building Size | 28,098 SF |
| Sale Type | Investment | No. Rooms | 15 |
| Sale Condition | Business Value Included | No. Stories | 3 |
| Property Type | Hospitality | Year Built/Renovated | 1914/2026 |
| Property Subtype | Serviced Apartment | ||
| Zoning | MU - Permitted: offices, retail, restaurants, finance, health care. Discretionary: housing (suites to multi-unit), bars/clubs, hotels, daycare, drive-thru, | ||
| Price | $5,800,000 CAD |
| Price Per Room | $386,667 CAD |
| Sale Type | Investment |
| Sale Condition | Business Value Included |
| Property Type | Hospitality |
| Property Subtype | Serviced Apartment |
| Lot Size | 1.02 AC |
| Building Size | 28,098 SF |
| No. Rooms | 15 |
| No. Stories | 3 |
| Year Built/Renovated | 1914/2026 |
| Zoning | MU - Permitted: offices, retail, restaurants, finance, health care. Discretionary: housing (suites to multi-unit), bars/clubs, hotels, daycare, drive-thru, |
About 411 N RAILWAY ST SE , MEDICINE HAT, AB T1A 2Z3
Rare opportunity to acquire a fully modernized, owner-occupied mixed-use hospitality asset with deep brand recognition, diversified income, and a reset capital lifecycle. Operating continuously since 1980, this long-standing neighbourhood institution functions as a multi-concept venue combining a destination sports bar, live music and entertainment, a chef-driven kitchen, off-site catering, and private events/buyouts—supported by a substantial residential rental component. The property is anchored by an approximately 28,000 sq. ft. repurposed heritage building (over 100 years old) that has been extensively upgraded and modernized while preserving its character. The mixed-use profile includes 13 residential apartments, with 8 brand new fully rebuilt units and 5 updated units, all delivered completed prior to sale. This residential component adds meaningful diversification and stability, reducing reliance on food and beverage revenue alone. The real estate is structured for simplicity and predictability under a single-tenant, true-net lease. The tenant is responsible for all operating costs, maintenance, and management, while the landlord receives fixed rent of $240,000 annually. This structure provides clean, hands-off income for an investor, while also offering an owner-operator the ability to capture additional upside through operations and residential revenue. Significant capital reinvestment has been completed to remove near-term risk and reposition the asset for long-term durability. Recent improvements include a $600,000 commercial kitchen expansion completed in 2025, approximately $2,440,000 in residential demolition and rebuild work, and roughly $300,000 in fire rating and exiting upgrades. In total, $3,300,000+ has been invested since a 2024 appraisal, creating a turn-key, capital-reset property with modern infrastructure and life-safety compliance. This offering is well suited for an owner-operator, hospitality group, or investor seeking stabilized mixed-use exposure with strong tax efficiency and minimal assumed liabilities. The business has historically delivered substantial owner benefit through a combination of rent, salary, cash distributions, and legitimate expense allocations, supported by multiple revenue streams including food and beverage, entertainment, catering, private events, and residential rentals. With a clean balance sheet at closing and major projects completed pre-sale, this is a compelling opportunity to acquire a modernized mixed-use asset with durable cash flow and long-term relevance.
Room Mix Information
| Description | No. Rooms | Daily Rate | SF |
|---|---|---|---|
| Suite | 13 | - | - |
| Guest Room | 2 | - | - |
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Address is c/o Grassroots Realty Group | 411 N Railway St SE
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