Newsletter: July 2012

Now that the summer is past, the usual refrain is that is time to get back to work. However, we were extremely busy over the Summer and it looks like the Fall will be busy as well. We hope that everyone is as busy as we have been and that the economy will continue to improve. Now, onto another late newsletter.

There were a total of 34 sales reported in the month of May with a total value of $187,473,357. Retail building sales accounted for 3.3% of the total, industrial buildings 0.7%, office buildings 8.7%, apartment buildings 25.4%, special buildings 45.5% and vacant land 16.3%.

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 four transactions in the RETAIL market with a total value of $6,275,000. The largest transaction within the segment was the sale of 2211 Carling Avenue. Starbank Developments 2211 Corp. sold the property to 2211 Carling Avenue Inc for $2,450,000 or $285/sf. It is improved with a single-storey retail building that was vacant at the time of sale. The purchaser, who intends to occupy the space, will convert the building into an eye surgery clinic. Charles Mirsky of District Realty was the real estate agent involved in this transaction.

There were two INDUSTRIAL building sales during the month of May with a total value of $1,345,000. 2508 Del Zotto Avenue represents the most notable industrial building sale for the month. 2205964 Ontario Limited acquired the property from 1048538 Ontario Inc. for $650,000 or $130/sf. It is improved with a single storey industrial building that features two overhead doors and a clear ceiling height of 14 feet.

There were three OFFICE sales during the month of May with a total value of $16,311,000. The majority of that total can be attributed to 80 Aberdeen Street. The property sold to 7943091 Canada Inc. (BTB Reit) from 80 Aberdeen Office Limited Partnership and 80 Aberdeen Office GP Inc. for $14,100,000 or $261/sf. It is improved with a four-storey, elevatored office building that was originally constructed in 1960 and extensively renovated in 2001. The property was fully leased to six tenants at the time of sale.

There were five transactions in the APARTMENT market with a total value of $47,557,500. The standout transaction in this particular segment was the sale of 1175 Maritime Way. The property sold to Killam KFH (Kanata Lakes) Inc. from 1175 Maritime Way Inc. for $42,500,000 or $291,096/unit. It is improved with a newly constructed 10-storey luxury rental apartment building with two-levels of underground parking. The building represents the first phase of a four phase apartment development.

Another notable apartment transaction was the purchase of 85-99 Florence Street. The property was acquired by 1860190 Ontario Inc. from a Private Individual for $2,850,000 or $158,333/unit. It is improved with eight, two-storey townhomes that have been converted to 18 apartment units.

There were four transactions in the SPECIAL building market with a total value of $85,339,250. All of the transactions represent part of a portfolio which Chartwell Master Care LP and HCN Canadian Properties Inc. acquired from Maestro Retirement Residences Fund. The portfolio comprises 8,187 suites in 42 retirement communities and sold for a net purchase price of approximately $931 million.

70 Stonehaven Drive sold to HCN (Stonehaven) Property Inc. from 9178-5634 Quebec Inc. for $43,164,124 or $228,382/unit. It is improved with a two storey retirement home that was constructed in 1993 and a four-storey seniors apartment building that was constructed in 2010.

240 Friel Street sold to CSH-HCN (Rideau) Inc. from 9123-3726 Quebec Inc. for $14,025,365 or $71,558/unit. It is improved with an eight-storey retirement residence that was constructed in 2001. The property was experiencing high vacancy at the time of sale.

1344 Belcourt Boulevard sold to CSH-HCN (Belcourt) Inc. from 9121-7794 Quebec Inc. for $10,966,245 or $100,608/unit. It is improved with a three-storey seniors apartment building that was constructed in 1983 and a three and a half-storey retirement residence that was constructed in 1999. Finally, 610 Montreal Road & 624 Wilson Street sold to CSH-HCN (Heritage) Inc. from 9111-6434 Quebec Inc. for $17,183,516 or $98,756/unit. It is improved with a three-storey retirement home that was constructed in 1999, a three and a half-storey seniors apartment building that was fully refurbished in 2004 and a three-storey link which was built in 2005.

There were 16 vacant LAND transactions during the month of May for a total consideration of $30,645,607. Of the 16 transactions, there were two commercial land sales, four industrial land sales, two residential land sales, seven rural land sales and one institutional land sale. The largest transaction was for a 50% interest in 175.080 acres of industrial land located on the west side of Mer Bleue Road, south of Innes Road. The interest was acquired by 2322028 Ontario Inc. from Emparrado Corporation for $14,709,120 or $168,027/acre (based on 100% interest).

Greenbank Self Storage Corporation (Dymon Self Storage) purchased a 1.174 acre site at Greenbank and West Hunt Club Roads from Koru Holdings Limited for $1,525,000 or $29.82/sf of site area. Dymon is planning on constructing a four storey, 841 unit self storage facility on this site in the near future.

NEWS

The local unemployment rate as reported by Statistics Canada for the month of May fell slightly to 6.1% from 6.2% in April. Meanwhile, the provincial and national unemployment rates remained unchanged at 7.8% and 7.3% respectively.

According to CMHC's news release, the number of residential units under construction during the month of May increased 23.0% year over year to 5,807 units. Housing Starts for the month shot up nearly 500% from 266 units in 2011 to 1,595 units in 2012. Year-to-date, housing starts have increased 75.3%, from 1,808 units in the first five months of 2011 to 3,170 units in the first five months of 2012.