Prepared For
Nick Karmali
Mia Foods · March 2026
Commercial Real Estate Advisory
Commercial Purchase vs. Lease Analysis
Option A — Purchase
144 Oakdale Road, Toronto
Interest Only (Yr 1)
+
TMI
=
$360,739
$322,056 interest + $38,683 TMI/taxes
Remaining mortgage payment builds equity.
Remaining mortgage payment builds equity.
Option B — Lease
51 Esandar Drive, Unit 6, Toronto
Annual Rent
+
TMI
=
$439,529
$330,000 rent + $109,529 TMI
Every dollar paid is gone. No equity. No asset.
Every dollar paid is gone. No equity. No asset.
Key Insight
Even on an interest-only basis, purchasing 144 Oakdale costs $78,790 less per year than leasing 51 Esandar — before accounting for any principal paydown or equity accumulation.
Option A — Purchase
144 Oakdale Road
Toronto, ON · 15,800 sq ft · $433.54/sq ft · 101 × 349 ft lot
Purchase Price
$6.85M
BDC Financing — 5% Down
Down Payment (5%)
$342,500
Capital to close
Annual Mortgage
$453,600
Principal + interest
Year 10 Equity
$2,110,000
Estimated accumulated equity
Option B — Lease
51 Esandar Drive, Unit 6
Toronto, ON · 22,000 sq ft · Net lease structure
Annual Base Rent
$330,000
Plus TMI obligations
Security Deposit (Est.)
$55,000
~2 months rent, no return
Total Annual Cost
$439,529
Rent + TMI, all-in
Year 10 Equity
$0
No ownership, no asset built
True Cost Comparison — Excluding Principal Paydown
| Cost Component | Option A — Purchase 144 Oakdale Road |
Option B — Lease 51 Esandar Drive |
Δ Annual Savings (Purchase) |
|---|---|---|---|
|
Annual Mortgage / Rent
Full obligation including principal
|
$453,600 | $330,000 | −$123,600 |
|
Taxes / TMI
Annual property tax or tenant TMI
|
$38,683 | $109,529 | +$70,846 |
|
Maintenance Reserve
|
$12,000 | $0 | −$12,000 |
|
Total All-In Annual Cost
Mortgage/rent + taxes + maintenance
|
$504,283 | $439,529 | −$64,754 |
|
True Cost — Year 1
Interest + TMI only — no principal counted
|
$360,739 | $439,529 | +$78,790 cheaper |
|
True Cost — Year 10
Interest at 5.5% + TMI — no principal counted
|
$282,193 | $483,482 | +$201,289 cheaper |
10-Year Outlook
Purchase — Equity Accumulated (Est.)
$2,110,000
Estimated equity position at year 10 combining mortgage principal paydown and conservative market appreciation on a freehold Toronto industrial asset. This is capital that belongs to Mia Foods.
Lease — Projected Annual Cost by Year 10
$773,571
All-in annual lease cost by year 10 after TMI escalations and rent increases. Every dollar spent is an expense — no equity, no asset, no residual value for Mia Foods.