The Multi-Res Services Group at Cushman & Wakefield offers the following services to real estate investors and owners of apartment buildings in Toronto and throughout markets in Ontario. The group provides apartment landlords, asset managers and investors with unparalleled market knowledge, advisory services, access to qualified investors and transaction expertise.
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Key to the most successful real estate acquisitions are an intimate knowledge of the local market and relationships with relevant contacts. Buying apartment buildings in the current market can be difficult, with a variety of buyers chasing an ever shrinking universe of available buildings. As REITs and other institutional buyers acquire properties and trade rarely, if at all, between themselves, sourcing available apartment buildings is challenging.
Cushman & Wakefield’s Multi-Res Services Group has a database of thousands of independent landlords throughout Toronto and secondary markets in Ontario, in addition to relationships with all major REIT and institutionally owned assets. By matching your acquisitions criteria with off market opportunities, we are able to provide clients with access to properties not on the open market for sale. We provide years of experience to every type of real estate acquisition in the Greater Toronto Area. Cushman & Wakefield provides professional, expert advisory services to the full spectrum of REIT, institutional and corporate buyers, as well as independent, family owned buyers of apartment buildings in Toronto and Ontario.
To discuss your specific acquisitions criteria for apartment buildings for sale and off market with the Multi-Res Services Group, call 416.205.9222 or email here…
Cushman & Wakefield has grown to become a dominant force in the Greater Toronto Area real estate market because of our intimate knowledge of both apartment assets and the key players in this complex market. We provide apartment building owners and asset managers with the invaluable perspective of those who are in touch with a constantly changing market; in addition to our extensive connections to current and potential buyers ranging from REITs to institutional to international and local private companies. Our targeted approach allows for sophisticated apartment sellers to market their building to the buyer who is best fit for the individual asset, and will see the highest value in it at the current time, based on their sources of capital and acquisitions cycle.
Representative successful apartment building sales include:
To confidentially discuss your specific apartment asset with the Multi-Res Services Group, call 416.205.9222 or email here… We will forward a written confidentiality agreement to you prior to collecting any important information about your property.
Within Multi-Residential portfolios, the commercial component can sometimes be an afterthought. Cushman & Wakefield’s Multi-Res Services Group can assist in improving the bottom line and adding substantial portfolio value by increasing rental rates, improving tenancies and decreasing the vacancy of the commercial component of your apartment building portfolio.
Canadian Apartment Properties Real Estate Investment Trust is one of Canada’s largest residential landlords and property managers, with substantial commercial space ancillary to their residential properties. For CAPREIT Cushman & Wakefield has:
Canadian Housing Corporation owns and operates exclusive student-residence apartment buildings across Ontario. Opportune ground floor commercial space is common to many of their residential buildings. Ashlar has been engaged by the owner-operator of Village Suites Oshawa and West Village Suites, Hamilton to fill the vacancies and renew expiring leases for the 17,340 square feet of commercial space in their portfolio.
Often buildings have underutilized, vacant, essentially all but forgotten space that can be repositioned to add substantial value to multi-residential apartment portfolios. We at Cushman & Wakefield call this Conversion Space. Our Multi-Res Services Group can advise on the highest and best use for the potential conversion space, find the best tenant for the space and use our expertise to help manage any rezoning requirements.
Cushman & Wakefield was engaged to lease an abandoned 12,000 SF Squash Club in the basement and subbasement of a 22-storey apartment building located at 33 Davisville, in mid-town Toronto. Cushman & Wakefield was successful in leasing the space to a fitness facility and managed the process of rezoning through the Committee of Adjustment and the Ontario Municipal Board.
Cushman & Wakefield is often sourced as an industry expert by media covering the apartment building sector in Toronto and Canada. Below are samples of various articles that are valuable to those managing, buying and selling apartment buildings in Ontario. See all market news here
Low-rates, hungry investors push up GTA apartment values new
By Paul Brent
Property Biz Canada
Thu Apr 11 2013
Today’s environment of ultra-low interest rates and deep-pocketed investors (or their banks) have pushed greater Toronto area apartment building values ahead by 12% from 2011 averages, according to the recently released Multi-Family fourth-quarter report from commercial real estate firm Ashlar Urban.
The Toronto-based firm expects the market for multi-res to stay hot as long as interest rates remain at the rock bottom range that they are today.
“Our feeling is that it is primarily yield driven, that is what drives real estate,” said John Carter, a sales representative with Ashlar Urban. “As long as interest rates stay low, people like the stability of multi-family.”
Even the country’s greatest condo boom has not managed to dull the appeal of apartment buildings for investors. “It is interesting because that whole shadow rental market of new condo development has basically been servicing the demand for new rental,” he said.
Location is the advantage
Those gleaming new condos are in tough against existing multi-res towers, said Carter. “It is almost helping some areas because you can’t replace the location. Existing rental stock has an advantage just purely from a location standpoint and some people prefer dealing with a professional landlord versus dealing with the one-off guy who owns five units.”
Apartments are also a cheaper option, a major consideration for newcomers to the country and young people moving to the core. While market conditions pushed average rents for purpose-built units in the former City of Toronto up by 2.8% last year, they remained approximately 40% lower than condo rents, according to firm’s report.
There has been “a bit” of new apartment construction in the Toronto market, most notably Concert Realty Services Ltd.’s new building in the “primo” location of Bay and Dundas (the 29-storey Motion building, now open for occupancy).
“They are one of the only ones that are active in Toronto and we have discussed with them as well what it takes to make it work,” he said.
“They are really doing it without development risk, they are just doing it because that is the type of property that they want to own and they are a long term buyer.”
Other multi-res owners are taking more modest approaches to increase density within their existing portfolios, he added.
Big buyers setting the price
Much of the GTA’s price increase has been driven by aggressive, institutional buyers, said the Ashlar Urban sales rep.
“Basically REITs and institutions are paying a half point more than individuals are for the same stuff. The majority [are] Vancouver-based and a couple of foreign buyers are really setting the high water marks for values.”
Local buyers are buying single assets at lower prices and higher rates of return.
In its report, Ashlar Urban found that apartment prices rose on a price per unit basis from approximately $116,000 to $130,000 per unit. Prices paid were higher and returns were lower for portfolio sales with cap rates averaging almost a full percent below the market average.
The rest of the market excluding those portfolio transactions was at lower price per unit of $127,600 and higher returns with an average cap rate of 5.5%. Highs were also set, with “a number” of transactions breaking through the $200,000 per unit and cap rates sinking to as low as 3.5%, the report said.
One such deal was 70-90 Heath Street West in the Yonge and St. Clair area which sold for $268,700 per door. Not surprisingly, the highest prices are being paid in the most affluent parts of the city, in situations where value-added opportunities exist.
U.S. monetary authorities set future path
Ashlar Urban expects the ultra-low rate environment to last at least another year. Just how long it lasts will be up to U.S., not Canadian, monetary authorities.
It is recommending investors obtain the longest-term CMHC loans, with shorter amortization to pay down debt more rapidly to minimize potential future risks if rates rise. Among its clients, the majority sought 10-year CMHC loans “to lock in one of the major cost variables in multi-family investing.”
Carter said that the expectation is for yield-hungry investors to continue to keep pushing prices northward as long as rates remain where they are now.
The firm also noticed a “significant” decrease in the number of people migrating to Ontario from other countries—and leaving the province in search of jobs— factors which are contributing to the softening of the GTA housing market and are contained in a new report from the Canada Mortgage and Housing Corporation.
As of last September, net migration in Ontario had fallen by 20% year over year to below 60,000 new residents.
Report says numbers are a wake-up call
“This could be a wake-up call for residential developers who have been pressing the province and suburban municipalities to open up more GTA land for development, citing what would appear to be an outdated notion that the region gets about 100,000 new residents a year,” Ashlar Urban stated in its report.
“We feel that the reduction in migration should have little impact on vacancy rates in multi-residential properties. However, this situation could exacerbate the slowdown in new condominium development if it continues.”
Carter sees five major markets for multi-res buyers in Canada: Montreal, Toronto, Ottawa, Calgary and Vancouver.
“Vancouver is next to impossible to find product and if you can it is at very, very low cap rates. Calgary is about the same as Toronto but there is less product available so it makes for more competition,” he said.
“Ottawa is I think one of the best return markets over the next year. Compared to Toronto I think you can get a bit better yield. And Montreal as well is an area that a lot of groups are more aggressively pursuing.”