November 14, 2025
Brookstone is pleased to announce the acquisition of Cobbs Block Central, a prominent two-storey multi-tenanted commercial building in Sylvan Lake, Alberta. This transaction, finalized in November 2025, reflects Brookstone’s commitment to expanding its commercial real estate footprint and displays its transformative approach to using Brookstone securities as currency in property acquisitions.
A Strategic, Value-Driven Acquisition
The $6 million purchase of Cobbs Block Central was structured to meet the goals of both vendor and purchaser, featuring $4,125,000 in cash & $1,875,000 in Brookstone Series “B” Convertible Preferred Shares yielding 5%
Property Overview
Cobbs Block Central offers over 26,000 square feet of leasable commercial space situated on 0.91 acres, complemented by an additional titled parking lot spanning 0.14 acres. The building has been thoughtfully renovated, repositioned towards providing personal and professional services for Sylvan Lake year-round residents. The property features over 50 parking stalls, supporting its anchor tenant mix.
Tenant Strength and Market Position
Key tenants include Olympia Liquor, Alberta Health Services, Harvest Operations Corp, and Sylvan Lake Steam Spa, collectively providing strong rental income and enhancing the building’s stability. Over 85% of rentable space is currently leased, with a weighted average lease term of 47 months. The property delivers projected annual revenue of $718,000 and a modeled adjusted cap rate of 8.2%, supporting a robust cash flow and NOI profile.
Validation of Roll-Up Model Scalability
This transaction reinforces Brookstone’s roll-up acquisition model as scalable and highly effective. By blending cash with preferred shares, Brookstone continues to create flexible, win-win solutions that align with vendor interests, including tax deferral and ongoing income streams. The ability to integrate multiple properties, under a roll-up model, allows Brookstone to accelerate growth while maintaining disciplined financial management, setting the stage for the company’s ambitious goal of reaching $100 million in commercial real estate assets.
About Sylvan Lake
Sylvan Lake is a vibrant and growing municipality located in central Alberta with a permanent population of 17,500 . Known for its waterfront recreational amenities and community-oriented lifestyle, the town provides a strong local economic base fueled by retail, services, and expanding residential development. Sylvan Lake’s growth rate outpaces the provincial average, making it an attractive market for commercial investment and long-term tenant stability.
Impact on Brookstone’s Portfolio
The Cobbs Block Central acquisition strengthens Brookstone’s position in Alberta’s rapidly growing Central region, adding scale and income diversity to the portfolio. The flexible transaction structure, including the significant preferred share component, sets a powerful precedent for future acquisitions and reinforces Brookstone’s assets as over $55 million, with strong momentum toward the $100 million target.
