Very few apartment buildings are currently under development and condominium prices are hitting record levels throughout the Greater Toronto Area (GTA). As a result, rental vacancy rates remain low. This is supporting valuations on apartment assets well into the first quarter of 2013, which continue to be in line with peak valuations for the sector that were set in 2012.
The Driftwood Avenue transaction follows that trend, as the vacancy rate was minimal and rental rates at the time of this deal were at market levels.
- Address: 50 Driftwood Ave.
- Date of sale: March 1, 2013
- Sale price: $11.3 million
- Capitalization rate: 6.3 per cent
- Total number of units: 108
- Price per unit: $104,630
- Vendors: Stonecap Securities Inc. and MetCap Living Inc.
- Purchaser: Flagship Property Ventures Corp.
- Brokers: Earl Kufner and Michael Betsalel of Colliers International
Between Jan. 1, 2010, and March 23, 2012, there were a total of 93 multi-residential investment transactions in North York, Ont., exceeding $1 million. The aggregate sale value of these 93 transactions totalled $893 million, and averaged approximately $115,000 per unit throughout this period.
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].
