Newsletter: March 2011

There were a total of 20 sales reported in the month of January with a total value of $130,045,334. Industrial buildings accounted for 26.4%, office buildings 33.1%, apartment buildings 8.0%, special buildings 0.5% and vacant land 31.9%. Sales data has been provided by RealTrack, Inc. For more information visit http://www.realtrack.com or call 1-877-962-9033

SALES

There were no transactions in the RETAIL market in January.

There were six INDUSTRIAL building sales during the month of January with a total value of $34,355,000. The most noteworthy transaction in the industrial market segment was the sale of 2370 Walkley Road. The property sold from SREIT (Nuquest Ontario) Ltd. to Richcraft (Walkley) Ltd. for $29,000,000 or $92/sf. It is improved with a one-storey steel-framed office/warehouse building that was constructed in several phases. Aik Aliferis, Nick Pantieras and Sam Firestone of Primecorp Commercial Realty were the listing agents with regards to this transaction.

There were three OFFICE building sales with a total value of $43,110,000. The most notable transaction was the sale of 400 Cumberland Street. The property was purchased by Dundee Canada (GP) Inc. from 1258898 Ontario Ltd. for $38,300,000 or $219/sf. It is improved with an 11-storey Class "B" office building with ground floor retail that was constructed in 1972 and renovated in 2000. The building was fully leased at the time of sale. Nathan Smith and Bernard St-Onge of Cushman & Wakefield Ottawa were the listing agents with regards to this transaction.

Also worth mentioning is the sale of 1600 Laperriere Avenue. The property sold from Laperriere Property Ltd. to 1600 Laperriere Avenue Inc. for $4,200,000 of $197/sf. It is improved with a two-storey, multi-tenant walk-up office building that was constructed in 1981. The building was fully leased at the time of sale. Graeme Webster and Marc Morin of District Realty Corp. were the real estate agents involved with this transaction.

There were four sales in the APARTMENT market with a total value of $10,425,000. 286 Wilbrod Street was the largest transaction selling to Wilbrod Place Apartments Inc. from 286 Wilbrod Inc. for $6,200,000 or $116,981/unit. It is improved with a six-storey residential apartment building. Charles Mirsky and Steve Ramphos of District Realty Corp. were the listing agents for this transaction.

Another significant transaction was the sale of 30 Mountain Crescent. The property was purchased by 4552199 Canada Inc. from 1168705 Ontario Inc. for $2,385,000 or $159,000/unit. It is improved with a three-storey residential apartment building with a ground floor office unit that was constructed in approximately 1999. Rick McTiernan of Royal Lepage Gale Real Estate was the listing agent with respect to this sale.

There was one transaction in the SPECIAL building market. 2620 Market Street was purchased by Ahmadiyya Muslim Jamaat Canada Inc. from the Ottawa-Carleton District School Board for $650,000 or $30/sf. It consists of three properties, one which is improved with a former school and the other two representing vacant lots. It is located in the Village of Cumberland in the east end of the city.

There were six vacant LAND transactions during the month of January for a total consideration of $41,505,333. Of the six transactions, there was one commercial land sale, three residential lands sales and two agricultural land sales. The most notable transaction was for nearly 132-acres of future urban development land located at 5271 Richmond Road. The properties sold to South Kanata Development Corporation from a Private Individual for $33,800,000 or $256,449/acre.

760 March Road is another transaction worth mentioning. The 7-acre parcel of residential land sold to Minto Communities Inc. from Private Individuals for $2,400,000 or $338,887/acre. A portion of the lands are within a flood plain as a result of Shirley's Brook which transverses the property.

5550-5560 Buckles Street & 3553 Nixon Drive, in the south end of Osgoode Village, was purchased by AAA Glengables Inc. from Private Individuals for $2,000,000 or $10,842/acre. It represents nearly 185 acres of land currently zoned Village Residential First Density, Open Space and Agricultural.

NEWS

The local unemployment rate as reported by Statistics Canada for the month of January decreased slightly to 6.6% from 6.7% the previous month. The provincial rate for January remained unchanged at 8.1%. The national overall unemployment rate saw an increase to 7.8% from 7.6% in December 2010.

According to CMHC's news release, the number of residential units under construction in January decreased 8.2% this year over last year to 4,761 units. Housing Starts for the month of January have shown a significant decrease of 42%, from 371 units in 2010 to only 216 units in 2011.