Startup-Led Initiative Aims to Reclaim Notman House, Now Up for Sale

The announcement of Montreal's iconic Notman House being officially listed on the market has stirred considerable interest, particularly within the local startup community. With its rich history as a hub for innovation and entrepreneurship, Notman House holds a special place in the hearts of many.

Enter Guiker, a forward-thinking real estate startup with a focus on rentals, poised to embark on an ambitious endeavor. Alongside a consortium of approximately 30 other investors, Guiker is gearing up to present a compelling offer to acquire Notman House. What sets this proposal apart is Guiker's innovative approach—a fractional ownership model that democratizes access to ownership and fosters community involvement in the revitalization of this historic space.

Nan Hao, the visionary founder and CEO of Guiker, articulated the collective aspiration to propel Notman House into a new era of prominence and purpose. Embracing its identity as a community-driven initiative, the goal is to reinvigorate Notman House as a dynamic hub for collaboration, creativity, and innovation.This bold initiative not only reflects Guiker's commitment to reimagining the real estate landscape but also underscores the power of community-driven investment in shaping the future of urban spaces. As Montreal's startup ecosystem continues to thrive, the potential acquisition of Notman House by Guiker represents a pivotal moment in the ongoing evolution of the city's entrepreneurial landscape.

The urgency surrounding the fate of Notman House is palpable, with Guiker's proposal emerging as a potential lifeline for this historic landmark. Despite its illustrious history, the specter of financial instability looms large over Notman House, exacerbated by the default on debts owed to the Business Development Bank of Canada (BDC) and Investissement Québec.With unpaid mortgage fees totaling $323,000 CAD and a court-ordered supervised sale looming, the future of Notman House hangs in the balance. Guiker's offer, while nominally competitive with the current asking price of $5,495,000 CAD, stands out for its unique community-driven approach to ownership. By enabling community members to share ownership, Guiker's proposal offers a compelling alternative that aligns with Notman House's ethos as a collaborative hub for innovation and entrepreneurship.

Despite its financial challenges, Notman House continues to be a beacon of creativity and entrepreneurship, generating approximately $700,000 CAD in annual revenue through various revenue streams such as event and meeting space fees, rental income, and Café OSMO, its onsite restaurant. Guiker's investment proposal underscores the importance of erasing the current debt burden, not only to secure the future viability of Notman House but also to preserve its role as a vital community space for events and innovation in Montreal's vibrant Plateau neighborhood.Founded in 2015, Guiker has been dedicated to revolutionizing the rental market by providing a streamlined platform connecting landlords and tenants. In a bid to further expand its footprint in the real estate landscape, Guiker made a strategic move in November 2023 by acquiring Willow.ca, a Toronto-based proptech startup specializing in fractional real estate investment platforms.

At the heart of Willow.ca's model lies the concept of fractional real estate investment, enabling individual investors to purchase shares in real estate assets rather than entire properties. This innovative approach significantly lowers the barrier to entry for real estate investments, making it accessible to a broader range of investors.With the acquisition of Willow.ca under its belt, Guiker is poised to leverage the fractional real estate model in its proposal to acquire Notman House. By dividing ownership into shares, Guiker aims to rally investors from the Montreal startup ecosystem to participate in the buyback of Notman House. These investors would function as limited partners, akin to shareholders in a company, thus aligning their interests with the long-term success and sustainability of Notman House.

Nan Hao, founder and CEO of Guiker, underscores the significance of community involvement in this endeavor. By inviting individuals who share a vested interest in the preservation and continued existence of Notman House to become rightful owners, Guiker seeks to ensure that the spirit and mission of this iconic landmark endure for generations to come.

The approach outlined aligns closely with one of the options proposed by John Stokes, the current board chair of the OSMO Foundation, as articulated in a LinkedIn post. Stokes envisions a scenario where friendly purchasers, who share Notman House's mission and vision, acquire the property, ensuring its continuity within Montreal's startup ecosystem. This approach aims to relieve Notman House of its current debt burden while ushering in a new ownership structure supportive of its mission.

The initiative underscores the importance of separating ownership and management roles to enhance transparency and accountability. Guiker and the limited partners would assume ownership as for-profit entities, while the day-to-day management and operations would be overseen by a non-profit entity. This delineation seeks to align incentives, leveraging the mandate of BDC to support small and medium-sized Canadian businesses with Notman House's mission to nurture and empower founders.

Nectarios Economakis, a partner at Amiral Ventures, highlights the challenge of accurately measuring the total value of Notman House due to its significant community impact. This external value capture, he suggests, extends beyond traditional metrics and underscores the unique role Notman House plays within Montreal's startup ecosystem.As Notman House is housed within a heritage building, its preservation is mandated, but its continued existence as a meeting space for the startup community hinges on ownership decisions. Gabriel Sundaram, co-founder of Mission.dev, expresses concern about the potential loss of Notman House and underscores the importance of initiatives like Guiker's proposal in ensuring the continuation of its mission.

Amidst these developments, stakeholders remain hopeful that entities like BDC and Investissement Québec will consider the broader community impact and the imperative of preserving Notman House's legacy. BetaKit's outreach to these organizations seeks to shed further light on their perspectives and potential involvement in shaping Notman House's future.