Newsletter: October 2011

There were a total of 24 sales reported in the month of August with a total value of $161,072,590. Retail building sales accounted for 7.3% of the total, industrial buildings 2.6%, office buildings 37.0%, apartment buildings 3.3%, special buildings 41.8% and vacant land 7.9%.

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 six transactions in the RETAIL market with a total value of $11,760,000. The most notable transaction was the purchase of 474 Hazeldean Road. The property was purchased by 1828493 Ontario Ltd. from Etinvest Holdings Ltd. for $7,525,000 or $260/sf. It is improved with a single-storey retail strip plaza and a freestanding restaurant pad with drive-thru facility. Quintin Colaiacovo and Nico Zentil of CB Richard Ellis were the listing agents with regards to this transaction.

There were three INDUSTRIAL building sales during the month of August with a total value of $4,250,000. 820 Belfast Road represented the largest transaction transferring from Telford Properties Inc. to 1663321 Ontario Inc. for $2,200,000 or $183/sf. It is improved with a two-unit industrial building. The purchaser owns the Trainyards retail development to the immediate south of this property.

There were four OFFICE building sales with a total value of $59,544,000. Two of the larger sales represent properties in Dundee REIT's recently acquired portfolio. First is The National Building at 130 Slater Street which transferred from 130 Slater Street Limited to Dundeal Summer 2001 Collection (GP) Inc. for $29,650,000 or 219/sf. It is improved with a 13-storey Class "C" office building that was originally constructed circa 1967 and renovated in 1984. The property was fully leased to 30 tenants.

The second property in the transaction was The Narono Building at 360 Laurier Avenue West. The property transferred from 360 Laurier Avenue West Limited to Dundeal Summer 2011 Collection (GP) Inc. for $18,894,000 or $176/sf. It is improved with an 11-storey, Class "B" office building that was constructed in 1968 and most recently renovated in 2007. The property was fully leased to five tenants. The portfolio was marketed by Chris Bell, Scott Antoniak and Mark Driman of CIBC World Markets.

Another transaction worth mentioning is the purchase of 411 Roosevelt Avenue. The property was purchased by 411 Roosevelt Avenue Inc. from Eiffel Construction Limited for $7,100,000 or $186/sf. It is improved with a four-storey plus basement, Class "B" office building that was constructed in 1975. The property was approximately 24% vacant at the time of sale, with the purchaser intending to occupy the majority of the vacant space. Jason Shinder, Steve Ramphos, Graeme Webster and Marc Morin of District Realty Corp were the listing agents involved with the transaction.

Lastly, 100 Gloucester Street was sold by a Private Individual to Gloucester Chambers Limited and Gloucester Chambers Limited Partnership for $3,900,000 or $171/sf. It is improved with a six-storey plus elevated basement, Class "C" office building that was constructed circa 1964. The property was approximately 22% vacant at the time of sale. Andre Labelle and Raymond Duhaime of Coldwell Banker Sarazan were the agents with respect to this transaction.

There were four transactions in the APARTMENT market during the month August with a total value of $5,387,500. The largest transaction was the sale of 4 & 8 Tormey Street. The properties were purchased by 2295132 Ontario Inc. from a Private Individual for $3,300,000 or $235,714/unit. The properties are improved with a three-storey, 13-unit purpose-built apartment building as well as a three-bedroom dwelling.

There were two transactions in the SPECIAL building market with a total value of $67,374,671. The majority of that sum can be attributed to a retirement portfolio acquired by First Leaside Realty. The portfolio included The Palisades, an eight-storey, 100-unit retirement residence as well as a seven-storey, 54-unit retirement condominium building and The Redwoods, a 17-storey, 210-unit retirement condominium building. The properties sold to First Leaside Realty II Inc. from Palisades Ottawa Retirement Community Inc. and Redwoods Ottawa Retirement Community Inc. for $64,624,671 or $177,540 per unit.

Also worth mentioning is the sale of another retirement residence located at 1119 Bathgate Drive. The property, known as Camilla Gardens, sold from 738611 Ontario Limited to 2274855 Ontario Inc. for $2,750,000 or $59,783/unit. It is improved with a single-storey retirement home. Randy Stevenson and Allan Jackson of Barclay Commercial Corporation were the agents for this transaction.

There were five vacant LAND transactions during the month of August for a total consideration of $12,756,419. All of the transactions represented residential land, the largest of which was a 38 acre parcel of land located at 3360 Greenbank Road that was purchased by Claridge Homes (South Nepean) from Private Individuals for $7,821,419 or $205,179 per acre. Bruce and Matthew Firestone of Century 21 Explorer Realty were the agents with respect to this transaction.

NEWS

The local unemployment rate as reported by Statistics Canada for the month of August continued to decline to 4.9% from 5.3% in July and 5.6% in June. The provincial rate for August remained unchanged at 7.5% while the national overall unemployment rate rose slightly to 7.3% from 7.2% a month prior.

According to CMHC's news release, the number of residential units under construction during the month of August decreased 17.7% this year over last year to 4,414 units. Housing Starts for the month have also decreased year-over-year, from 695 units in 2010 to 650 units in 2011. Year-to-date housing starts have decreased 15.9%, from 4,099 units in the first eight months of 2010 to 3,449 units in the first eight months of the current year.