Transactions Rental Market Upate

Rental Market Update

Recovery continued through the second quarter

The Canadian multi-suite residential rental market recovery continued during the second quarter of 2022, extending the current phase of the cycle that emerged in the second half of 2021. Despite weaker housing market trends, many families continue to be unable to afford to purchase a home in several of the country’s major urban centres. Rising interest rates have also forced many families to continue to rent their living accommodations. In addition, the return of post-secondary students in the wake of easing COVID measures and a modest increase in the younger workforce cohorts have further bolstered rental demand.

“Landlords have been able to, on average, command higher rents and have experienced strong occupancy rates in most regions,” observed Keith Reading, Director of Research at Morguard. “For the most part, rental market conditions have returned to those reported prior to the pandemic’s emergence in early 2020.”

Investment market

Multi-suite residential rental properties remain a prime target of various investment groups in the second quarter, and these groups continued to increase their exposure to the multi-suite purpose-built rental sector, given strong fundamentals and a generally healthy outlook.

“Several large-scale assets and portfolios have traded recently, indicating high levels of investor confidence in this sector,” Reading said. “We anticipate strong transaction activity over the balance of the year, given the sector’s track record of relative resilience during periods of economic turmoil.“

New & Notable transactions

1. 2. 3. 4. 5.

Address City Sale Price (Millions) # of Units Sale Price/ Unit Purchaser

Source: Morguard

8420 Boyer St

Raamco Portfolio Montreal $16.9 108

Toronto, Vancouver, Victoria $630.5 1,806 $156,019 Elmira Capital

$349,114 Starlight Investments

633 Northcliffe Blvd York $34.5 86

215, 225 Markham RD Toronto $165.0 423 $401,163

$390,071 Pulis Investments

Q Residential

Paramount Portfolio Ottawa $70.3 370 $189,865 Starlight Investments

Equiton acquires Brampton residential property

Equiton Residential Income Fund Trust announced it has acquired a multifamily property in Brampton, Ontario, for $63 million. Once known as Braemar Place, the 15-storey building located opposite the Bramalea City Centre shopping centre has 153 renovated units and 198 combined indoor and outdoor parking spots. Building amenities include storage lockers, bicycle storage, a playground, and an outdoor swimming pool.

After 74 consecutive months of positive returns since its inception, Equiton now has 29 properties in 15 communities across Southern Ontario for a total unit count of 2,117. The company says adding these additional units at the Brampton property to its growing portfolio will further enhance operational efficiencies and management synergies.

“We are truly excited to be expanding our presence in the GTA with this acquisition,” said Jason Roque, Equiton Founder and Chief Executive Officer. “With its large suites, soughtafter amenities, and ideal location close to transit, shopping and dining, this property will appeal to a diverse renter base. Furthermore, the significant capital investments made recently to improve the building and renovate the suites, makes this a strong addition to our Apartment Fund, which will benefit our investors.”

The Equiton Apartment Fund is a private real estate investment trust. The strategy of the Fund is to acquire existing apartment buildings and apply its expertise and comprehensive management approach to create significant value for its investors.

ARE YOU CONTEMPLATING THE SALE OF YOUR APARTMENT PORTFOLIO/PROPERTY?

Consider the following: • Who will represent your best interest? • Who will give your property maximum exposure? • Who will deliver the highest value for your property?

With over 30 years of experience, tens of thousands of units sold, and hundreds of clients represented, we have consistently delivered superior results. Through our local and national coverage, we create maximum exposure, ensuring maximum value for your property.

Over $7.9B

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CBRE Limited, Real Estate Brokerage

National Apartment Group – Toronto

DAVID MONTRESSOR

Vice Chairman Sales Representative (416) 815-2332 david.montressor@cbre.com

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