Newsletter: September 2012

There were a total of 21 sales reported in the month of July with a total value of $107,479,573. Retail building sales accounted for 46.1% of the total, industrial buildings 14.5%, office buildings 7.8%, apartment buildings 6.4%, special buildings 16.7% and vacant land 8.5%.

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 $49,550,000. The majority of that sum was due to the purchase of a 75% interest in 3775-3777 Strandherd Drive. Sun Life Assurance Company of Canada acquired the share from Barrhaven Town Centre Inc. and Jockvale Developments Inc. for $46,500,000. It is improved with a big box power centre comprising 290,320 square feet. The property also has an excess land component of some 70,000 square feet.

1760 St. Laurent Boulevard is also considered to represent a significant retail transaction. Nisman Holdings Limited sold the property to 1760 St. Laurent Corp. for $3,050,000 or $186/sf. It is improved with single storey retail plaza that was constructed in the mid 1960s. The property is fully leased to two tenants.

There were four INDUSTRIAL building sales during the month of July with a total value of $15,550,000. 1481 Michael Street was the standout industrial building sale for the month. 1310061Ontario Limited sold the property to 1481MS Property Ltd. for $12,000,000 or $112/sf. It is improved with a single storey warehouse building that was constructed in 1960 and later expanded in 1966. The building features 10 overhead doors and a clear ceiling height of 16.7 feet. It was fully leased to two tenants at the time of sale. Nico Zentil, Peter Senst and Jaysen Smalley of CB Richard Ellis and Scott MacKay and Rick Vandenbelt of Facilities Commercial Realty were the agents involved in this transaction.

2764 Fenton Road represents another large industrial building transaction. 2331272 Ontario Inc. acquired the property from Private Individuals for $2,050,000 or $69/sf. It is improved with a single-storey industrial building that was constructed in the mid 1980’s. The building features four drive-in doors and a clear ceiling height between 15 and 17 feet. The property is serviced by municipal water and a private septic tank. The property was fully leased at the time of sale. Derek Parker of Metro Suburban Realty was the listing agent with regards to this transaction.

There was one OFFICE sale during the month of July. 2175 Robertson Road sold to Huntington Properties Inc. from Erez Capital (145 Robertson) Inc. for $8,350,000 or $173/sf. It is improved with a single storey office building. The property was fully leased to one tenant at the time of sale. Aik Aliferis of Primecorp Commercial Realty Inc. was the agent involved with this transaction.

There were six transactions in the APARTMENT market with a total value of $6,919,500. The most significant transaction was the sale of 214 Gloucester Street. The property was purchased by 1470475 Ontario Inc. from 1728174 Ontario Ltd. for $2,350,000 or $111,905/unit. It is improved with a three-storey walk-up apartment building. Charles Mirsky and Steve Ramphos of District Realty Corp. were the agents involved in the sale of this property.

There were two transactions in the SPECIAL building market with a total value of $17,938,148. The majority of that sum can be attributed to the sale of 1541 St. Joseph Boulevard. The Royale Development GP Corporation acquired the property from 2052740 Ontario Inc. for $17,113,148 or $106,957/bed. It is improved with a three-storey Class “A” long term care facility that was constructed in 2007. The facility had a 99.4% occupancy rate at the time of sale and a 60/40 private/shared accommodation ratio.

There were six vacant LAND transactions during the month of July for a total consideration of $9,171,925. Of the six transactions, there was one commercial land sale, three residential land sales and two rural land sales. The most notable transaction was the assembly of three rural parcels on the west side of Frontier Road, south of Highway #417. The 534.830 acres of rural land was acquired by 2312661 Ontario Inc. and 2333764 Ontario Inc. from Delmor Holdings (Windsor) Ltd., Hampton Holdings of Windsor Limited and a Private Individual for $4,750,000 or $8,881/acre. The purchaser is proposing to develop the site with an industrial and commercial landfill and waste processing facility.

NEWS

The local unemployment rate as reported by Statistics Canada for the month of July rose sharply to 6.4% from 5.9% in June. The provincial rate also saw an increase from 7.7% to 7.9%. The national overall unemployment rate increased, albeit slightly, 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 July increased 37.5% year over year to 5,870 units. Housing Starts for the month however, saw a significant 25.5% decrease from 385 units in 2011 to 287 units in 2012. Year-to-date, housing starts have increased 45.9%, from 2,799 units in the first seven months of 2011 to 4,085 units in the first seven months of 2012.