Newsletter: November 2011

There were a total of 36 sales reported in the month of September with a total value of $107,148,942. Retail building sales accounted for 25.0% of the total, industrial buildings 11.8%, office buildings 4.3%, apartment buildings 18.9%, special buildings 8.1% 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 three transactions in the RETAIL market with a total value of $26,810,000. The largest transaction within the sector was the sale of 1670 Heron Road. The property was acquired by Riotrin Properties (Heron Group) Inc. from Kanco Heron Gate Mall Ltd. for $17,000,000 or $87/sf of building area. It is improved with a single storey enclosed mall that is anchored by Food Basics, Scotiabank and Pharma Plus. The purchaser is planning on demolishing part of the existing mall and redeveloping the property with inline and free standing retail buildings.

Another major transaction includes a sale-leaseback of a Shoppers Drug Mart located at 2301 Tenth Line Road. The property sold to Scott's Trustee Corp from Shoppers Realty Inc. for $8,140,000 or $240/sf. The property sold as part of a $33-million portfolio containing a total of 9 properties primarily located in Ontario.

There were two INDUSTRIAL building sales during the month of September with a total value of $12,600,000. The majority of that sum can be attributed to the sale of 2760-2770 Sheffield Road. The property sold to Richcraft (Sheffield South) Ltd from 356123 Ontario Ltd. for $12,000,000 or $79/sf. It is improved with two multi-tenant industrial buildings. The buildings were fully leased at the time of sale. Ian Shackell of CB Richard Ellis was the listing agent with regards to this transaction.

There were five OFFICE sales with a total value of $4,595,000. The most notable sale was the purchase of 1 Terrence Matthews Crescent. The property sold to Drevniok Developments Inc. from 2029465 Ontario Inc. for $2,300,000 or $132/sf. It is improved with a three-storey multi-tenant office building. The building was fully leased to four tenants at the time of sale. Graeme Webster, Jason Shinder and Marc Morin of District Realty Corp were the agents involved with this transaction.

There were six transactions in the APARTMENT market during the month September with a total value of $20,261,000. The largest transaction was for a group of buildings located at 552-628 Coronation Avenue, 609-623 Chadburn Avenue and 1489-1503 Weyburn Avenue. The properties were purchased by Byron Rental Properties Ltd. from GBA Inc. for $12,000,000 or $142,857/unit. They are improved with 10, two and a half-storey sixplexes. Steve Ramphos, Jason Shinder and Charles Mirsky of District Realty Corp were the agents involved with this transaction.

The next largest transaction was 362 Friel Street. The property sold to 2258514 Ontario Ltd. from Casa SBMR Ontario Inc. for $2,600,000 or $246,305 per unit. It is improved with an older three-storey apartment building which was later expanded circa 2003.

Finally, the last major transaction in the apartment market segment was the sale of 381-391 Presland Road. The property sold to 2295449 Ontario Inc. from 1676517 Ontario Ltd. for $2,000,000 or $117,647/unit. It is improved with a 17-unit rental townhouse project.

There were four transactions in the SPECIAL building market with a total value of $8,650,000. The largest transaction was for the Monterey Inn Resort located at 2259 Prince of Wales Drive. The property was purchased by 2259 Prince of Wales Property Inc. from Shanif Management Inc. for $4,300,000 or $48,864/room. The property consists of an 88-room resort and conference centre that is located on the western banks of the Rideau River.

Another sale worth mentioning is 2810 Baycrest Drive. The property sold to Baycrest Residence Inc. from United Way/Centraide Ottawa, in Trust for $2,100,000 or $79/sf of building area. It is improved with a two-storey institutional building that was constructed circa 1964 and expanded ten years later. The purchaser intends on converting the building into an assisted living centre. Michael Church of Avison Young acted for the vendor and Gladys Baart of Century 21 acted for the purchaser.

There were 16 vacant LAND transactions during the month of September for a total consideration of $34,232,942. Of the 16 transactions, there were 11 residential land sales, three future growth land sales and two industrial land sales. The largest transaction was for 76 acres of future development land fronting on Mer Bleue, Wall and Tenth Line Roads. The property was purchased by Claridge Homes (Mer Bleue) Inc. from 1728117 Ontario Inc. for $6,500,120 or $85,228/acre.

The next largest transaction was 256 Rideau Street and 211 Besserer Street. The property sold to Phoenix Properties Inc. from 9093-5958 Quebec Inc. for $6,000,000 or $453/sf of site area. It was improved at the time of sale however the purchaser intends to redevelop the property with two 28-storey condominium towers consisting of 250 units.

3533 Navan Road was another major transaction. The 25 acre parcel of future development land sold to 1561976 Ontario Inc. from 813720 Ontario Ltd. for $4,267,000 or $171,159/acre.

Further, 1050 Somerset Street West sold to Claridge Homes (Hintonburg) Inc. from Private Individuals for $3,250,000 or $125/sf. The property is improved with a single-storey retail building but was purchased for its redevelopment with residential. Jason Shinder and Charles Mirsky of District Realty were the brokers with respect to this transaction.

Also of note is the sale of 3724 Bankfield Road located on the north side of Bankfield Road between Prince of Wales Drive and Highway 416, in the south end of the City. The 89 acre parcel of future development land sold to The Bankfield Group Inc. from Private Individuals for $2,500,000 or $28,085/acre. It is reported the purchaser acquired the property for its future development with big box retail.

NEWS

The local unemployment rate as reported by Statistics Canada for the month of September rose slightly to 5.0% from 4.9% in August. The provincial rate for September also rose to 7.6% from 7.5% but the national overall unemployment rate fell to 7.1% from 7.3% a month prior.

According to CMHC's news release, the number of residential units under construction during the month of September decreased 8.9% this year over last year to 4,574 units. Housing Starts for the month have increased 35.4%, from 463 units in 2010 to 627 units in 2011. Year-to-date housing starts have decreased 10.7%, from 4,562 units in the first nine months of 2010 to 4,076 units in the first nine months of the current year.