In the first quarter of 2013, the Greater Toronto Area apartment sector saw nearly $650 million of activity. In comparison, the remaining three quarters experienced between $286 million and $385 million in overall activity.
While the fourth quarter reached a seemingly low $286 million in activity this figure, it in fact represents a 50 per cent increase from the same quarter of 2012. In total, the 12-month aggregate exceeded that of 2012.
The apartment sector’s average capitalization rate has declined from 5.52 per cent in 2012 to 5.46 per cent in 2013, representing a decrease of approximately one basis point. This is the lowest recorded average capitalization rate of any sector in commercial real estate across the GTA.
This notable transaction was purchased by Hollyburn Properties for a total consideration of $3.95 million. The apartment contains 28 building units (14 bachelor apartments and 14 one-bedroom units), representing a price per unit of $141,071. Completed in late December, the transaction was brokered by Colliers.
- Address: 501 Mount Pleasant Rd., Toronto, Ont.
- Date of sale: Dec. 30, 2013
- Sale price: $3,950,000
- Capitalization rate: 3.7 per cent
- Total number of units: 28
- Price per unit: $141,071
This “new and notable transaction” was provided by Richard Vilner, research manager at RealNet Canada Inc., a leading Canadian real estate information services company that powers the decisions of firms involved in approximately 75 per cent of the market activity. He can be reached at [email protected].
