PILLAR 03 · EXPERT INSIGHTS Interview EP 124

Building and Financing Missing Middle Apartment Buildings

with Darren Voros , Investor and Developer , Voros Group
Play: Building and Financing Missing Middle Apartment Buildings
LISTEN ON ▶ YouTube
43 min · October 13, 2026 · 0 views
WHAT YOU'LL LEARN
  1. Why the 5-unit threshold changes everything from financing to valuation.
  2. How Bill 23 allows 10-unit buildings to bypass site plan approval.
  3. Common development landmines like urban forestry and carrying costs.
  4. The reality of CMHC 95% loan-to-cost construction financing.
  5. Why you should plan for 25-30% liquidity instead of just 5%.
  6. Strategies for financing acquisition versus construction.
Show Notes
Timestamps 7
Questions Answered 3
Mentioned In This Episode 2
Transitioning from residential to commercial real estate happens at the five-unit mark. In this episode, Darren Voros shares his extensive experience building 'missing middle' properties, focusing on the 5 to 10-unit sweet spot that allows developers to bypass lengthy site plan approvals.



From navigating urban forestry restrictions to managing massive carrying costs, Darren pulls back the curtain on the realities of ground-up development. You'll learn why the theoretical 95% loan-to-cost financing from CMHC often requires significantly more upfront liquidity than most investors anticipate.
00:00:00 The 5-Unit Commercial Threshold → 00:01:51 Why the 5-10 Unit 'Missing Middle' Zone → 00:05:33 Development Process and Common Landmines → 00:11:06 Assembling a Professional Development Team → 00:13:22 Structuring Acquisition and Construction Financing → 00:17:10 The Reality of CMHC 95% LTC Financing → 00:21:00 Case Study: Real-World Cash Requirements →
Why is the 5 to 10-unit range considered a strategic 'sweet spot' for developers?

Staying under the 10-unit marker can bypass the lengthy site plan approval process, which in cities like Toronto can save up to two years in the development timeline.

Is the CMHC 95% loan-to-cost financing realistic for new developments?

While CMHC offers up to 95% loan-to-cost, investors should realistically plan for 25% to 30% liquidity to cover acquisition, construction holdbacks, and trade deposits.

What is a common development landmine that investors often overlook?

In Toronto, urban forestry is a major landmine; city-owned trees can restrict a building's footprint and prevent developers from getting the approvals they need.

  • Three Minute Analyzer (Streetwise Vault)
  • Financing Road Map (Streetwise Mortgages)
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