Plans for a mixed-used development with a significant rental apartment component arise from a new joint venture between Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) and First Capital Realty Inc. The three-tower, 506-unit rental apartment complex along with 160,000 square feet of commercial retail space is slated for Toronto’s King West neighbourhood, bordering on the city’s downtown business and entertainment district.
This is CAPREIT’s first joint venture, for which it will invest $60.3 million toward the development of the project’s residential component, and will be contracted to lease and manage the apartment buildings. Completion is projected for 2018.
“We expect our interest in the property, combined with the property management fees we will receive, will be accretive to our cash flow and set the stage for similar partnerships, along with our own new rental developments in the future,” says CAPREIT’s president and CEO, Thomas Schwartz.
First Capital Realty and its existing partner will hold a two-thirds interest in the residential towers, which will offer a range of unit sizes, including family-oriented accommodation. There will also be four levels of below-grade parking.
“We are very pleased to be entering into our first joint venture contract to develop and lease this prestigious residential property targeted at meeting the significant and growing demand for high quality new rental accommodation in downtown Toronto,” Schwartz says.