According to the latest market report from JLL’s Multi-Residential Advisory Group, 2016 apartment transactions in the GTA decreased by 36 per cent, with sales totalling $594 despite only having 27 per cent fewer suites than last year (4,605 vs. 3,764). In 2015, the first three quarters saw $809 million in total apartment sales.
The average price per suite was down $14,000 from one year ago, dropping from $176,000 to $162,000 for the same period. Interestingly, the 2016 average price per suite was $2,000 more than the 2015 overall average, due to a number of high quality buildings that sold within the first nine months of 2015.
“Despite a tremendous reduction in the overall suite volume traded, the sustained level of dollar volume can be attributed to the cap rate compression that has occurred over the past five years,” said Michael Betsalel, Senior Vice President, JLL—noting that cap rates edged down to finish the first three quarters at 4.43 per cent, 16 bps lower than in 2015.
Prominent buyers
Nine buyers accounted for almost 65 per cent of the year-to-date transaction volume. These transactions traded at an average price per suite of $168,000, which is $6,000 more than the overall average.
The five leading buyers acquired $258 million of multifamily properties, almost 45 per cent of the total dollar volume that transacted.
1. Starlight Investments acquired nine properties comprised of 562 suites for a combined $91 million
2. Q Residential was the second most active purchaser with 321 units for $49 million
3. O’Shanter Development Corp. picked up two properties for $42 million
4. PN Properties acquired two properties for $40 million
5. Hollyburn Properties purchased two properties for $36 million
Notable GTA transactions: Q1 – Q3
- 625 Roselawn Ave, Toronto, comprised of 91 suites sold for $27,050,000
- 60 Gloucester St, Toronto, comprised of 80 suites, sold for $23,000,000
- 169 St. George St, Toronto, comprised of 52 suites, sold for $18,000,000
- 225-227 Cosburn Ave, East York, comprised of 93 units, sold for $16,040,000
- 818 Broadview Ave, Toronto, comprised of 31 suites, sold for $5,100,000
