Newsletter: October 2012

There were a total of 27 sales reported in the month of August with a total value of $465,809,473. Retail building sales accounted for 0.6% of the total, industrial buildings 2.1%, office buildings 45.9%, apartment buildings 45.1%, special buildings 0% and vacant land 6.3%.

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 $2,770,000. The majority of that sum was due to the purchase of 1025 Merivale Road, a single storey, multi-tenant retail plaza. WXYZ Property Management Inc. acquired the property from Tunis Temple Shine Corp. for $1,560,000 or $131/sf.

There was one transaction in the INDUSTRIAL market during the month of August with a total value of $9,625,000. This transaction consisted of 4 properties; 2535, 2555, 2575 & 2595 Blackwell Street. The purchasers, GPM (12) GP Inc. and GPM Real Property (12) acquired the properties from PCL General Holdings Inc for $9,625,000 or $91/sf. The properties are improved with older detached industrial buildings that were constructed between 1971 and 1976. All of the properties were 100% leased at the time of sale.

There were four transactions in the OFFICE market during the month of August with a total value of $213,994,461. The majority of the sum was due to the purchase of 200 Kent Street. The Great-West Life Assurance Company purchased the property from 200 Kent Street Ltd for $143,400,000 or $370/sf. The site is improved with a Class “A” 15 storey office building that was constructed in 1964, retrofitted in 1982 and renovated in 1996. It is 97% leased to the federal government until November 30, 2025.

Another notable transaction which occurred was the sale of 77 Metcalfe Street. The property was purchased by 77 Metcalfe Street GP Inc. from The Cadillac Fairview Corporation Ltd. for $45,000,000 or $341/sf. The site is improved with a Class “A”, 12 storey office building which currently serves as the headquarters for NAV Canada. The building is 100% leased to Nav Canada until October 2022 with a contractual rental increase of $2/sf every three years. The building was constructed in 1954 and renovated in 1994.

There were five transactions in the APARTMENT market with a total value of $210,183,112. The most significant transaction was the 85% portfolio purchase from GBB holdings Inc. by Minto Multi-Residential Income Partners I, GP Inc. for $181,883,112. The portfolio consisted of 8 properties; Parkwood Hills Complex, 91 Valley Stream Drive, 1800 Baseline Road, 2,10 & 11 Deerfield Drive, 420 Gilmour Street & 21 James Street. The properties consist of 1,525 rental units. The sites primarily comprise mid-high rise apartment buildings with the exception of the Parkwood Hills Complex which is made up of multiple low-mid rise apartment buildings and townhouses.

Another significant transaction was the purchase of four properties between the seller T.K. Inc. and the purchaser Killam Investment Inc. The properties sold were 1440 Mayview Avenue, 266 Bronson, 621 Cummings Avenue and 1425 Rosenthal Avenue for a total consideration of $24,000,000. The sites were improved with 3 mid-high rise and 1 low rise apartment buildings. In total the buildings had 244 units with an average sale price of $98,361/unit.

There were zero transactions in the SPECIAL building market.

There were nine vacant LAND transactions during the month of August for a total consideration of $29,286,900. Of the nine transactions, there was one industrial land sale, three residential land sales and five future growth land sales. The most notable transaction was the assembly of two future growth parcels on the west side of Hazeldean Road, north of Carp Road. The 65.553 acres of future growth land was acquired by Minto Communities Inc. from the Kavanagh Family Investments Limited and a private individual, for $12,148,300 or $185,320/acre. Approximately 6 acres (9%) are zoned as General Mixed Use land and the remaining 59.533 acres (91%) are zoned as General Urban area.

NEWS

The local unemployment rate as reported by Statistics Canada for the month of August held at 6.3% from July. The provincial rate saw a marginal increase from 7.9% to 8.0%. The national overall unemployment remained consistent from the prior month, holding at 7.2%.

According to CMHC’s news release, the number of residential units under construction during the month of August increased 31% year over year to 5,781 units. Housing Starts for the month however, saw a significant 42.5% decrease for the month of August from 650 units in 2011 to 374 units in 2012. Year-to-date, housing starts have increased 29.3%, from 3,449 units in the first eight months of 2011 to 4,459 units in the first eight months of 2012.