Newsletter: January 2011
A little something to read before most of you head off for March break.
There were a total of 27 sales reported in the month of November with a total value of $84,701,889. Industrial building sales accounted for 13.9% of the total, office buildings 61.5%, apartment buildings 1.1%, special buildings 0.8% and vacant land 22.7%.
Sales data has been provided by RealTrack, Inc. For more information visit http://www.realtrack.com or call 1-877-962-9033
There were no transactions in the RETAIL market in November.
There were five INDUSTRIAL building sales during the month of November. 2630 Sheffield Road was sold to Richcraft (Sheffield) Limited from Leo P. Abrams Realty (Carleton) Limited for $4,020,000 or $85/sf of building area. It is improved with a one-storey industrial warehouse building with a two-storey office component in the front. The building is leased to the federal government. Nathan Smith of Cushman & Wakefield Ottawa was the listing broker with respect to this transaction.
2370 Lancaster Road also sold in November. The property was purchased by Canada Post Corporation from Darmah Investments Limited for $3,800,000 or $150/sf. It is improved with a one-storey industrial building. The purchaser intends to renovate the building into a letter carrier depot. Jim Shotton, Oliver Kershaw, Ian Shackell, Wally Pollock and Ross Pollock of CB Richard Ellis were the real estate agents involved with facilitating the transaction.
There were 11 OFFICE building sales with a total value of $52,097,000. The most notable transaction was the sale of 2200 & 2204 Walkley Road. The properties sold to Dundee Properties (GP) Inc. from Ottawa-2200 Walkley Road Inc. and Ottawa-2204 Walkley Road Inc. for $22,100,000 or $141/sf. They are improved with one two-storey and one five-storey office building. The buildings were 100% leased to the federal government at the time of sale. These properties were marketed by Gary Morassutti, Eli Fleischmann, Pat Luca and David Tweedie of RBC Capital Markets.
Another large transaction in the office market involves 365 March Road. This property was sold to MR 365 GP Inc. by 1430736 Ontario Inc. and 365 March Road Inc. for $11,729,000 or $166/sf. The property is improved with a one-storey office building that was extensively renovated in 1999. The building was fully leased at the time of sale. Nathan Smith of Cushman & Wakefield Ottawa was the broker with respect to this transaction.
2625 Queensview Drive was purchased by Dundee Properties (GP) Inc. from BRIQ Nominee Inc. for $8,620,000 or $187/sf. It is improved with a two-storey, Class "B" office building that was constructed in 1983. The building was fully leased to five tenants at the time of sale. This property was marketed by Aik Aliferis, Nick Pantieras and Sam Firestone of Primecorp Commercial.
Another sale worth mentioning is 2201 and 2211 Thurston Drive. The property sold to Thurston Drive Property and Thurston Drive Property LP from Fifth Dimension Properties Inc. for $3,150,000 or $127/sf. It is improved with a one-storey facility primarily finished for office use. The purchase also included approximately 0.83 acres of vacant land. Michael Church of Avison Young was the listing agent with respect to this sale.
There was only one transaction in the APARTMENT market. 249 & 253 Des Peres Blancs Avenue was sold to HL Mercier and Co Inc. from 1437128 Ontario Inc. for $920,000 or $76,667/unit. The properties are improved with two, two and one-half-storey walk-up apartment buildings that were constructed in the 1960's.
There was on transaction in the SPECIAL building market. 2470 Huntley Road was purchased by Grace Baptist Church of Ottawa from The People's Gathering Place of the National Capital Region for $640,000 or $152/sf. It is improved with a single-storey office building. The building was purchased for its utilisation as a church.
There were nine vacant LAND transactions during the month of November for a total consideration of $19,254,889. Of the nine transactions, there were five residential land sales, one commercial land sale, one institutional land sale, one future growth land sale and one agricultural land sale. The most notable transaction was for a 66-acre parcel of future development land situated on the northeast corner of Huntmar Drive and Maple Grove Road. The property was purchased by Urbandale Construction Ltd. from Huntmar Development Corp and Huntmar Development Corp (II) for $6,057,000 or $92,459/acre.
Also worth mentioning is an 18-acre parcel of land on the northwest corner of the Blackburn Hamlet Bypass and Esprit Drive. The property was purchased by the Ottawa-Carleton District School Board from Minto Communities Inc. for $6,586,000 or $370,917/acre.
The local unemployment rate as reported by Statistics Canada for the month of November slightly decreased to 6.8% from 6.9% in the previous month. The provincial rate for November also decreased from 8.6% to 8.2%. The national overall unemployment rate followed suit decreasing to 7.6% from 7.9% in the previous month.
According to CMHC's news release, the number of residential units under construction increased 2.9% this year over last year to 5,210 units. Housing Starts for the month of November showed a significant 38.9% increase, from 668 units in 2009 to 928 units in 2010. Year-to-date housing starts have increased 18.2%, from 4,993 units in the first 11 months of 2009 to 5,904 units in the first 11 months of the current year.