Newsletter: December 2011
First off, we wish to congratulate Rod Bowers in our office who received his AACI designation this past month. Rod has been with our firm since May of last year, having relocated to Canada from Britain. Rod also holds the MRICS designation from the Royal Institution of Chartered Surveyors. Rod can be reached by email at firstname.lastname@example.org or by phone at extension 105.
Now onto the sales that occurred in October of 2011. There were a total of 23 sales reported in the month of October with a total value of $54,693,683. Retail building sales accounted for 5.2% of the total, industrial buildings 2.6%, office buildings 4.0%, apartment buildings 20.1%, special buildings 0% and vacant land 68.1%.
Sales data has been provided by RealTrack, Inc. For more information visit http://www.realtrack.com or call 1-877-962-9033
There were two transactions in the RETAIL market with a total value of $2,850,000. The largest transaction within the sector was the sale of 2208 St. Joseph Boulevard. The property sold to 1850546 Ontario Inc. from 1503886 Ontario Inc. for $2,250,000 or $205/sf. It is improved with a single-storey retail strip plaza that was fully leased at the time of sale.
There was one INDUSTRIAL building sale during the month of October. 15-17 Bentley Avenue sold to 15-17 Bentley Holdings Inc. from Private Individuals for $1,400,000 or $98/sf. It is improved with a two-storey industrial-office building. It is reported the purchaser intends to occupy the building.
There were two OFFICE sales with a total value of $2,180,000. The most notable sale was the purchase of a condominium office unit located at 340 MacLaren Street. The property sold to 6106111 Manitoba Ltd. from 168876 Canada Inc. for $1,350,000 or $270/sf.
There were six transactions in the APARTMENT market during the month October with a total value of $11,014,000. The largest transaction was for a group of buildings located north of Carling Avenue along the east side of Doane Street. The property was purchased by Golden Dragon Ho 6 Inc. from Andadoug Inc. for $5,950,000 or $72,561/unit. It is improved with a three-storey apartment complex and five side-by-side duplexes. Richard Smith of Royal LePage Performance Realty was the listing agent with regards to this sale.
There were no transactions in the SPECIAL building market.
There were 12 LAND transactions during the month of October for a total consideration of $37,249,683. Of the 12 transactions, there were three commercial land sales, three residential land sales, five future growth land sales and one industrial land sale. The largest transaction was for 12 acres of commercial land situated on the southwest corner of Silver Seven Road and Frank Nighbor Place. The property was purchased by Silver Seven Corporate Centre Inc. from DB Mortgage Investment Corp #1 in a Power of Sale for $7,500,000 or $616,979/acre. It is reported to have been acquired for its development with retail and office space.
The next largest transaction was 175 Richmond Road and 356-360 Kirkwood Avenue. The property sold to Claridge Homes (Westboro) Inc. from 122856 Canada Ltd. for $6,775,000 or $99/sf of site area. It is improved with a mixed-use commercial building however the purchaser intends to redevelop the property with a four to nine-storey condominium apartment building consisting of 241 units and a ground floor retail component.
1400 Old Montreal Road represents another major transaction. The 145 acre parcel of future development land sold to Tamarack (Cardinal Creek South) Corp. from 724453 Ontario Ltd. for $5,324,761 or $36,633/acre.
Further, 1145 March Road sold to 7089121 Canada Inc. from Private Individuals for $5,036,922 or $99,248/acre. Also of note is the sale of 2503 Mer Bleue Road. The 26 acre parcel of future development land sold to Claridge Homes (Mer Bleue Phase 2) Inc. from Private Individuals for $2,593,000 or $100,193/acre. It is reported the purchaser acquired the property for its future development with a subdivision of single detached homes.
The local unemployment rate as reported by Statistics Canada for the month of October rose to 5.6% from 5.0% in September. The provincial rate for October also rose to 8.1% from 7.6%. The national overall unemployment rate followed suit rising to 7.3% from 7.1% a month prior.
According to CMHC's news release, the number of residential units under construction during the month of October increased 1.6% year over year to 4,891 units. Housing Starts for the month have increased 45.4%, from 414 units in 2010 to 602 units in 2011. Year-to-date housing starts have decreased 6.0%, from 4,976 units in the first ten months of 2010 to 4,678 units in the first ten months of 2011.