Newsletter: January 2012
There were a total of 31 sales reported in the month of November with a total value of $67,281,524. Retail building sales accounted for 10.5% of the total, industrial buildings 18.5%, office buildings 18.2%, apartment buildings 10.1%, special buildings 0% and vacant land 42.7%.
Sales data has been provided by RealTrack, Inc. For more information visit http://www.realtrack.com or call 1-877-962-9033
There were six transactions in the RETAIL market with a total value of $7,075,000. The largest transaction within the sector was the sale of 1440 Merivale Road. The property was acquired by Gyonh Ottawa 2011 Inc. from 1440 Merivale One Inc. for $2,625,000 or $190/sf. It is improved with a three-storey multi-tenant building that was fully leased to four tenants. Phil Zunder of Decathlon Commercial Realty Corporation was the broker with respect to this transaction.
There were four INDUSTRIAL building sales during the month of November with a total value of $12,422,500. 110 Iber Road represents the largest industrial building transaction. The property sold to the City of Ottawa from HOOPP Realty Inc. for $5,050,000 or $84/sf. It is improved with a single-storey warehouse that was constructed circa 1987. The warehouse features 10 loading doors and a clear ceiling height of 27 feet. Erik Falardeau of CB Richard Ellis was the agent involved with this transaction.
46 Auriga Drive was purchased by Crawford Door Sales of Canada Ltd. from William Tomlinson Enterprises Inc. for $3,087,500 or $124/sf. It is improved with a single-storey warehouse that features 5 loading doors and a 22 foot clear ceiling height. Ian Shackell of CB Richard Ellis was the agent involved with this transaction.
Finally, 1199 Newmarket Street was sold to 1199 Newmarket Holdings Ltd. by Cheneaux Investments (1980) Inc. and Les Placements Cheneaux (1980) Inc. for $3,000,000 or $120/sf. The property is improved with a single-storey industrial building that was constructed in the late 1960's. The building features 9 loading doors and a 21-foot clear ceiling height. The property was fully leased to one tenant at the time of sale.
There were six OFFICE sales with a total value of $12,248,000. The most notable sale was the purchase of 441 MacLaren Street. The property sold to 441 MacLaren Holdings Limited from 333 Kent St. Inc. for $5,200,000 or $199/sf. It is improved with a four-storey, Class â€œBâ€ office building that was constructed circa 1979. The property was 83% occupied by 5 tenants at the time of sale. Eric Van Hofwegen and Ryan Barresi of Cushman & Wakefield Ottawa were the listing agents with regards to this transaction.
Another large transaction within the office market segment is the sale of 55 MacKay Street. The property was purchased by The Government of The Socialist Republic of Vietnam from Private Individuals for $2,525,000. It is improved with a heritage home which the purchaser intends to convert into a diplomatic office.
There were three transactions in the APARTMENT market during the month of November with a total value of $6,790,000. The largest transaction was 210 Chapel Street which sold to 1470475 Ontario Inc. from a Private Individual for $3,925,000 or $135,345/unit. It is improved with a three and a half-storey walk-up apartment building. Charles Mirsky and Jason Shinder of District Realty Corp were the agents involved with this transaction.
Another significant apartment transaction was the sale of 344-348 Lacasse Street. The property was purchased by Golden Dragon Ho 6 Inc. from Private Individuals for $2,250,000 or $75,000/unit. It is improved with two, three and a half-storey apartment buildings.
There were no transactions in the SPECIAL building market.
There were 12 vacant LAND transactions during the month of November for a total consideration of $28,746,024. Of the 12 transactions, there were five residential land sales, four industrial land sales, two commercial land sales and one future growth land sale. The largest transaction was for 16 acres of commercial land situated on the southeast corner of Limebank and Earl Armstrong Roads. The property was purchased by Morguard (Armstrong) Limited and Richcraft (Armstrong) Limited from Riverside South Development Corp for $12,800,000 or $794,192/acre. It was acquired for its development with approximately 200,000 square feet of Big Box retail.
The next largest transaction was 2303 Mer Bleue Road. The property sold to Richcraft Homes Ltd. from Private Individuals for $3,300,000 or $251,314/acre. The purchaser represents an adjacent land owner who intends to assemble the lands for its future development with residential and commercial uses.
Another significant transaction was the purchase of 159-167 Parkdale Avenue. The property was acquired by Richcraft (Parkdale) Ltd. from a number of vendors for $3,125,000 or $212/sf of site area. It is currently improved but was purchased for its development with a residential condominium.
Finally a land assembly on 1129-1139 Bridge Street represents the last significant land transaction. The property was acquired by Manotick Villa On The Rideau Inc. and Junicon Construction Inc. from Private Individuals for $3,059,617 or $32.60/sf of site area. The purchaser intends to redevelop the improved site with a three-storey, 126-unit retirement home.
The local unemployment rate as reported by Statistics Canada for the month of November jumped to 6.1% from 5.6% in October. The provincial rate for November however decreased to 7.9% from 8.1%. The national overall unemployment rate increased slightly to 7.4% from 7.3% a month prior.
According to CMHC's news release, the number of residential units under construction during the month of November decreased 6.1% year over year to 4,893 units. Housing Starts for the month have also decreased, falling 40.4% from 928 units in 2010 to 553 units in 2011. Year-to-date housing starts have decreased 11.4%, from 5,904 units in the first eleven months of 2010 to 5,231 units in the first eleven months of 2011.