Transactions Up, Up, and Away

UP, UP AND AWAY

Canada’s rental market continues its trajectory

The Canadian multi-suite residential rental market continues to strengthen, with rental demand patterns remaining healthy throughout the third quarter. The return of post-secondary students to in-person classes and an increase in international migration volume supported relatively robust rental demand in the nation’s major urban centres.

“Owners of rental properties have been able to command higher rents on vacant units,” observed Keith Reading, Director of Research at Morguard. “Vacancy has trended steadily lower. As a result, prospective tenants have found it more challenging to source options available for rent.”

Investment market

Multi-suite residential rental properties remain a prime target of various investment groups. For the first time in recent history, cap rates have increased, albeit slightly. Investors have re-priced investment risk due to the combined impacts of higher interest rates, rising long-term bond yields, and an increasingly uncertain economic outlook. Investors will continue to source properties in this sector given its history of relative strength during periods of economic weakness.

Starlight acquires 10 Ontario rental properties

In early September, Starlight completed the acquisition of

New & Notable transactions

1. 2. 3. 4. 5.

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

Source: Morguard

1698 Victoria Park Ave Toronto $17.1

61, 69,75 Eastdale Ave, 2, 12, 16, 24 Goodwood Park Cres Toronto $90.1 52

249 $328,846 Forest Gate Group

$361,847 LaSalle Investment Management

929 Richmond Rd Ottawa $97.3

5, 15 Jansusie Rd Etobicoke $25.5 175

90 $555,714 Brigil

$283,333 The Jansusie Ltd.

2181 Navaho Dr Ottawa $33.9 137 $247,455 Starlight Investments

10 Ontario assets located in Ottawa, Kingston, London and Welland. In all, the acquisition brings 1,178 new units to Starlight’s residential rental portfolio.

“This is a robust portfolio and will be a strong addition to our multifamily residential platform,” said Daniel Drimmer, Starlight Founder and Chief Executive Officer. “Ottawa, Kingston, London and Welland are all growing communities and some of the province’s strongest markets. We are thrilled to be able to continue expanding our offerings and provide quality homes with this well-maintained portfolio.”

All 10 Ontario assets are equipped with on-site laundry and parking, while some of the properties have electric vehicle (EV) charging stations. Several of the properties include commercial retail units, providing added value for residents. The portfolio consists of low-, mid-, and highrise buildings with a mix of layouts and sizes ranging from bachelors units to three bedrooms.

According to Starlight, all 10 Ontario assets are located in lively, thriving communities near major highways and public transport, providing residents with easy access to high-quality schools, restaurants, grocery and retail amenities.

This acquisition came just a few weeks after Starlight announced it had purchased a new 120-unit purpose-built rental property in Nanaimo, BC, known as “Cascade Residences.”

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

Sales Volume Over 56,900 Suites Sold

30 Years

of Experience

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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