Newsletter: June 2012

Yes, it is the last week of June and this is the June newsletter. We hope that everyone is able to enjoy the summer weather and take in the many festivals and activities that Ottawa has to offer over the next few months. Now onto the sales that occurred in April.

There were a total of 15 sales reported in the month of April with a total value of $76,502,977. Retail building sales accounted for 14.1% of the total, industrial buildings 17.2%, office buildings 15.6%, apartment buildings 3.1%, special buildings 0% and vacant land 50.0%.

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 $10,800,000. The standout transaction within the sector was the sale of 500 Eagleson Road & 105 Denzil Doyle Crescent. Eagleson Road Business Centre Inc. sold the property to 2321324 Ontario Inc. and Jasaab Holdings Limited for $8,300,000 or $305/sf. It is improved with a single-storey neighbourhood plaza and gas station. The property also contained some excess land. The improvements were fully leased to 16 tenants at the time of sale.

There were three INDUSTRIAL building sales during the month of April with a total value of $13,150,000. 1171 Kenaston Street represents the largest industrial building sale for the month. Crestpoint Real Estate (GTB Portfolio) Inc. acquired the property from GTB Land-Vestments Inc. for $9,800,000 or $114/sf. It is improved with a single storey industrial building that was constructed in 2007. The building features 11,377 square feet of mezzanine office space. The building also features 6 truck level doors, 2 drive-in doors and a clear ceiling height of 52 feet. This sale was part of a portfolio of properties occupied by Shred-It. Michael Church, Jeff Flemington and Martin Dockrill of Avison Young as well as BMO Capital Markets helped facilitate this transaction.

There were two OFFICE sales during the month of April with a total value of $11,915,000. The majority of that total can be attributed to 1130 Morrison Drive. The property sold to JDC Apex Inc. from 2082749 Ontario Inc for $10,950,000 or $178/sf. It is improved with a three-storey, elevatored office building that was constructed in 1987. The property was fully leased to eight tenants at the time of sale. Graeme Webster, Marc Morin & Steve Ramphos of District Realty were the agents involved with this transaction.

There were two transactions in the APARTMENT market with a total value of $2,360,000. The largest transaction was for 354 London Terrace and 51 Jardin Private which was purchased by London Terrace Lofts Ltd. from 2156116 Ontario Inc. for $1,560,000 or $130,000/unit. It is improved with two, two and a half-storey, 6-unit apartment buildings reported to have been constructed in the 1950’s. The buildings consist of 1 one-bedroom and 11 two-bedroom units. Tenants are responsible for heat/hydro.

There were no transactions in the SPECIAL building market.

There were five vacant LAND transactions during the month of April for a total consideration of $38,277,977. Of the five transactions, there was one commercial land sale, one industrial land sale, one residential land sale, one rural land sale and one future growth land sale. The largest transaction was for a 145.425 acre parcel of future development land located on the west side of Bank Street and south side of Leitrim Road. The property was acquired by Findlay Creek Properties (North) Ltd., Tartan Homes (North Leitrim) Inc. and Tartan Land (North Leitrim) Inc. from a group of Private Individuals for $31,866,504 or $219,127/acre.

Also of note is the sale of 93.129 acres of Industrial Land located on the east side of Albion Road, south of Rideau Road. RW Tomlinson Ltd. purchased the property from Giust Construction Ltd. for $2,500,000 or $26,844/acre. The property is designated Mineral Extraction Zone under the City of Ottawa Zoning By-law.

NEWS

The local unemployment rate as reported by Statistics Canada for the month of April held at 6.2% for the second month in a row. The provincial rate for April however leaped to 7.8% from 7.4% in March. The national overall unemployment rate also increased 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 April decreased 5.1% year over year to 4,614 units. Housing Starts for the month saw a slight 1.1% decrease from 446 units in 2011 to 441 units in 2012. Year-to-date however, housing starts have increased 2.1%, from 1,542 units in the first four months of 2011 to 1,575 units in the first four months of 2012.