Real estate can be the beginning of a great business idea.

David Keshen, proprietor of Toronto's Etherea Natural Foods, knows how interdependent a business and its real estate are. In his first venture in the early seventies, right out of university, he leased a grand old Hamilton theatre, famous for its huge crystal chandeliers, as his alternative movie house, Dollar Fifty Delta.

Next, he got involved in owning real estate because a childhood friend earned a real estate license.

"In the '80s, Toronto was going through a real estate downturn and prices were depressed, and I had a friend in real estate," said Keshen. "He'd drag me out saying, 'There are a lot of bargains.' One day, I said, 'This is nice.' [We] borrowed from my family, fixed it up, put tenants in and then sold for a handsome price in '85."

Keshen attributes his successful real estate investing to "being in the right place at the right time." His strategy is simple: buy a building that needs a cosmetic overhaul, but is structurally sound and has good potential as a rental property.

"I've always had a partner when I've bought," said Keshen, explaining how he bought his first building with his brother for C$77,000. "It is the only way since the two of us did not have money when we started. I thought my father might give us money for the down payment if I involved my brother."

They sold the building for C$125,000.

Years later, the same real estate friend invited Keshen to buy into a commercial building that had been fully renovated and modernized. He also partnered in the existing decor and antique store that was proving too much work for the returns.

"We sold off the assets of the [decor] store and took our lumps and I am now running the building," said Keshen who has set up his own health food store and taken over full responsibility of operating the building in lieu of rent. "[My partner] is getting nothing out of it, I am getting the advantage of low rent. I cover the short-fall between rent from the tenant upstairs and the mortgage, taxes and heating."

Etherea has opened to great reaction from locals, his primary market.

"I have had incredible feedback from people walking by -- people trying to get in even when the sign said Not open yet," said Keshen, days before the June opening. "Etherea is a combination of health food and bulk store. When people come in, they will find something to buy. As much as possible, I am going to keep things pure. I am going to stock organic, but not rule out non-organic, and that I can shift after I open the doors. I am going to listen to my customers and see what they want."

The primary intention is to serve the neighbourhood, but Keshen felt that if he could make the store interesting enough, customers could come from all over the city and, perhaps eventually, further afield. Compact at just over 500 square feet, Etherea's 12-foot ceilings give the space an airy feeling and provide lots of room for the assortment of local and exotic dry goods and goodies.

The interior of the store is one of the main marketing features. The stunningly-distinct hand-crafted wooden shelving and decor, with its echos of Hobbits and old-fashioned wooden-floored general stores, will draw many inside this retail space.

"The way it is designed now, people come inside and their jaws drop open," said Keshen. "The initial thing is the smell–myriad essential oils, woods, and then I turn on the lights, and all the wood around me is comforting. Old world, but the design is very space-age."

Owning the building was the key to Keshen's relatively stress-free start up. He admits if he had been renting retail space, he would have had to simplify the design to cut construction time or hire a crew and work with a significantly larger renovation budget.

Patience can be essential to real estate investing.

"We are in for the long haul," explained Keshen, discussing the investment strategy he and his partner have for this commercial building. "We think this area is undervalued. To invest, you buy the worst in the best area. We have the worst in a bad area which is turning around ... I see the opportunity in staying here and nursing this along."

To reach Etherea Natural Foods, email David at This email address is being protected from spambots. You need JavaScript enabled to view it. If you'd like to see what's on the shelves, drop in to 1151 Davenport Road.