Newsletter: September 2011

There were a total of 26 sales reported in the month of July with a total value of $46,103,000. Retail building sales accounted for 5.9% of the total, industrial buildings 24.2%, office buildings 16.2%, apartment buildings 22.2%, special buildings 10.2% and vacant land 21.3%.

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 two transactions in the RETAIL market with a total value of $2,735,000. The most notable transaction was the purchase of 111 York Street in the Byward Market. The property was purchased by CDS Web Ltd. from a Private Individual for $1,085,000 or $350/sf. It is improved with a three-storey commercial building comprising office and ground floor retail space. Graeme Webster and Marc Morin of District Realty Corp and Mohammad Homayoun of Kingsway Real Estate were the agents involved with this transaction.

There were four INDUSTRIAL building sales during the month of July with a total value of $11,150,000. 2481, 2487 & 2491 Kaladar Avenue was the largest transaction transferring from 356123 Ontario Ltd. to 7902883 Canada Ltd. for $4,800,000 or $41/sf. It is improved with three older buildings that were approximately 82% occupied at the time of sale. Ian Shackell of CB Richard Ellis was the listing agent with regards to this transaction.

Another large transaction in the industrial segment was the sale of 1481 Cyrville Road. The property was purchased by 2123264 Ontario Ltd. from Cyrville Road Properties Ltd. for $4,000,000 or $100/sf. It is improved with a single-storey fully sprinklered industrial building with a partial mezzanine level that was constructed in circa 1980. John Zinati and Jason Shinder of District Realty Corp were the agents involved with this transaction.

There were three OFFICE building sales with a total value of $7,450,000. The most noteworthy transaction was the sale of 263-267 Bank Street, 396 Cooper Street. The property sold to Bank & Cooper Property Ltd. and Bank & Cooper Property LP from Golden Dragon Ho Inc. for $5,450,000 or $206/sf. It is improved with a four-storey elevatored office building with ground floor retail that was constructed circa 1962. Graeme Webster, Marc Morin and Steve Ramphos of District Realty Corp were the agents involved with this transaction.

There were nine transactions in the APARTMENT market during the month of July with a total value of $10,248,000. The largest transaction was the sale of 90 Willow Street. The property was purchased by Wilbrod Holdings Inc. from 1750621 Ontario Inc. for $2,740,000 or $83,030/unit. It is improved with a seven-storey, 33-unit apartment building that was constructed circa 1963. Alex Diaz of Synercapital Real Estate Investment and John Hughes of Royal LePage Team Realty were the agents involved with this transaction.

There were two transactions in the SPECIAL building market with a total value of $4,700,000. 156 Cleopatra Drive was the largest transaction. The property sold to 2241987 Ontario Inc. from 2268140 Ontario Inc. as a result of a Power of Sale for $2,600,000 or $170/sf. The property is improved with a banquet hall that was built circa 1999. 500 Bride Private is the other special building transaction. The property sold to BACLJC Ministries Corporation from the Trustees of the Living Word Believers Fellowship in a no cash deal for $2,100,000 or $232/sf. It is improved with a Church with a day care facility. It is located in the south end of the city near the Strandherd interchange with Highway 416.

There were six vacant LAND transactions during the month of July for a total consideration of $9,820,000. Of the six transactions, there were two commercial land sales, two residential land sales and two rural land sales. The largest transaction was the sale of a 15,329 square foot parcel of residential land with frontage on Gloucester and Lyon Streets. The property was purchased by Bel-Ottawa Inc. from Byron Rental Properties for $3,150,000 or $205/sf. The property is currently improved but was purchased for land value only. The purchaser intends to redevelop the property with a 17-storey, 240 unit condominium building. Charles Mirsky of District Realty Corp was the agent involved in this transaction. 275 Tartan Drive is a 3.83 acre parcel of land that was sold to Viva Barrhaven GP Inc. by 2257331 Ontario Inc. for $3,000,000 or $18/sf. It is reported the purchaser intends to develop the property with a two-phase retirement community that will accommodate 185 to 235 units in total. The property previously sold in October 2010 for $1,125,000.

NEWS

The local unemployment rate as reported by Statistics Canada for the month of July continued to decrease to 5.3% from 5.6% in June and 5.9% in May. The provincial rate for July also decreased from 7.7% in June to 7.5%. The national overall unemployment rate followed suit, falling to 7.2% from 7.4% the month prior.

According to CMHC's news release, the number of residential units under construction during the month of July decreased 19.2% this year over last year to 4,268 units. Housing Starts for the month have also shown a significant 49.5% decrease year-over-year, from 763 units in 2010 to 385 units in 2011. Year-to-date housing starts have decreased 17.8%, from 3,404 units in the first seven months of 2010 to 2,799 units in the first seven months of the current year.