Newsletter: March 2012

We hope this everyone enjoying the early start to summer this year. Here is a late newsletter which is will be followed by another one very shortly. Who knows, maybe we will get the May newsletter out this month, but I would not bet on it.

There were a total of 27 sales reported in the month of January with a total value of $251,640,000. Retail building sales accounted for 4.8% of the total, industrial buildings 3.5%, office buildings 67.8%, apartment buildings 16.5%, special buildings 0% and vacant land 7.4%.

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 five transactions in the RETAIL market with a total value of $12,060,000. The largest transaction within the sector was the sale of 1860 Bank Street. The property was acquired by Ocean Properties 2 Inc. from 356123 Ontario Ltd. for $4,225,000 or $111/sf. It is improved with a mixed-use retail/warehouse building that was constructed circa 1959. The building was fully leased to five tenants. Ian Shackell of CB Richard Ellis was the broker with respect to this transaction.

The next largest sale within the retail market segment during the month of January was 353-355 Dalhousie Street. The property sold to 2306614 Ontario Inc. from 353-355 Dalhousie Corporation for $3,500,000 or $292/sf. It is improved with a three-storey mixed-use building comprising ground floor retail with offices above. The building was fully leased to three tenants at the time of sale.

111 Sherwood Drive represents another large transaction. The property sold to 111 Sherwood Drive Inc. from DGM Management Corp for $2,350,000 or $267/sf. It is improved with a two-storey commercial building comprising ground floor retail with offices above.

There were five INDUSTRIAL building sales during the month of January with a total value of $8,880,000. 2575-2585 Sheffield Road represents the largest industrial building transaction. The property sold to American Iron & Metal GP Inc. from Sheffield Properties Ltd. for $4,800,000 or $36/sf. It is improved with two vacant single-storey industrial buildings one of which was constructed in 1974 and the other in 1980. Ceiling heights range from 12-17 feet.

There were four OFFICE sales with a total value of $170,577,000. The most notable transaction was the sale of the new EDC building at 150 Slater Street. The property was purchased by The Manufacturers Life Insurance Company from 150 Slater Street (Ottawa) Inc. for $165,450,000 or $345/sf. It is improved with an 18-storey Class "A", LEED Gold Certified building that is 98% leased for 20 years to EDC.

2170 Thurston Drive represents another large office transaction. The property sold to Shalaby Enterprises Ltd. from 1258850 Ontario Inc. for $2,570,000 or $157/sf. It is improved with a two-storey office building that was constructed circa 1988. Joel Brodie of Keller Williams had this property listed for sale.

There were four transactions in the APARTMENT market during the month of January with a total value of $41,518,100. The majority of the sum can be attributed to the sale of 1170 Fisher Avenue. The property sold to Homestead Land Holdings Ltd. from 1170 Fisher Apartments Inc. for $37,973,100 or $140,641/unit. It is improved with a 9-storey L-shaped apartment building that was constructed circa 1970. The property previously sold in June 2011 for $27,000,000. Eli Fleischmann of RBC Capital Markets was involved with this transaction.

There were nine vacant LAND transactions during the month of January for a total consideration of $18,604,900. Of the nine transactions, there were six residential land sales and three commercial land sales. The largest transaction was for 18,331 square feet of residential land located at 70 Gloucester Street. The property was acquired by Claridge Homes (70 Gloucester) Inc. from Gloucester Street Property Limited and Gloucester Street Property Limited Partnership for $5,750,000 or $314/sf. It is improved with a four-storey office building but was purchased for land value. The purchaser intends to redevelop the property with a 27-storey condominium apartment building.

96 Nepean Street represents the second largest land transaction for the month of January. The 13,046 square foot parcel sold to Claridge Homes (96 Nepean) Inc. from Private Individuals for $4,150,000 or $318/sf. The property was utilized as a parking lot at the time of sale but the purchaser intends to develop the property with a 27-storey condominium apartment building.

Finally, 5734 & 5754 Hazeldean Road represents the last major land transaction for the month. The 5.217 acre parcel of commercial land was purchased by Hazeldean Commons Limited from Primrose Investments Ltd. for $2,950,000 or $565,459/acre. The purchaser owns an adjoining parcel fronting onto Iber Road and intends to develop 100,000 square feet of retail on the assembled lands.

NEWS

The local unemployment rate as reported by Statistics Canada for the month of January fell to 5.7% from 6.0% in December. The provincial rate for January however jumped to 8.1% from 7.7%. The national overall unemployment rate rose slightly to 7.6% from 7.5% a month prior.

According to CMHC's news release, the number of residential units under construction during the month of January decreased 5.7% year over year to 4,491 units. This shortfall comes despite the fact housing starts for the month leaped 124.1% from 216 units in 2011 to 484 units in 2012.