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Apartment & Redevelopment Newsletter

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Volume 4| September 2022

Welcome to another installment of the Apartment & Redevelopment Newsletter, designed to bring you local relevant information about what’s happening in the Greater Toronto Area (GTA) Apartment and Land property market. We bring this to you on a monthly basis to assist Property owners in keeping up to date with industry news, recent transactions and development applications.

In August 2022 there were 11 transaction’s in GTA Apartments, for a value of $178,240,000. This is down approximately 62% in aggregate value compared to August 2021 when there were 29 transactions for a total value of $505,418,500. There were 526 units traded in August 2022 vs 2078 units traded in August 2021.

On September 7, the Bank of Canada (BOC) increased its overnight rate an additional 75 bases points to 3.25%. As Interest rates have moved significantly with the government attempting to control inflation, Cap Rates for investment properties have also been affected (Multi-Family & other asset classes). Traditionally, purchasers for Multi-Family assets have a longer holding period and are securing longer term financing. The buildings with more units typically have a higher turnover ratio, to which investors can purchase at a more aggressive cap rate. Over the next several years the cap rate will increase as units are re-rented at new market rental rates and furthermore stabilized over a period of time.

Why Purchase Multi-Family: Real estate typically provides a higher real rate of interest than do banks because of the risks and costs associated with owning real estate. This spread of cap rates has some cyclicality, but is relatively constant in the long term, reflecting the stable nature of Apartment real estate as factor of production.

READ VOLUME 3 | READ VOLUME 5

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Apartment & Redevelopment Newsletter

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Pour plus d’informations, veuillez contacter:

Alexander Silver

Associate Vice President, Sales Representative

Toronto Downtown

Alexander co-manages the Multifamily & Redevelopment Advisory Team in the GTA. He specializes in acquisition and disposition of multi-family properties, commercial properties and re-development land in the GTA. Working alongside private and institutional investors, his experience allows clients to maximize value through discovery of their property’s highest and best use.


He consistently finds ways reduce risk, while increasing the probability of a successful sale. Alexander has a genuine approach, and enjoys building new relationships.

Voir l'expert

Steve Keyzer

Senior Vice President, Sales Representative

Toronto Downtown

A results-driven real estate professional, Steve has established himself as a trusted source for commercial real estate information across the GTA with a focus on the Toronto Downtown and Midtown Investment and Leasing Markets. Steve has completed commercial real estate transactions totaling over $800,000,000.
 
Property Advisory 
 
Steve has advised a number of significant property owners in the Toronto downtown market. He applies his creative background to determine a specific go-to-market strategies which are tailored to uncover competitive advantages and opportunities for value creation.

Backed by Colliers Toronto’s marketing team, Steve is able to offer best in-class marketing tools to segmented targets to generate strong targeted marketing campaigns, which allows property owners to maximize the value of their asset. Steve is able to assist his clients in establishing highest and best use of the property to determine the highest potential market value.


Corporate Advisory
 
Steve offers a particular strength and understanding in corporate rebranding opportunities though real estate realignment, assisting clients to establish a distinct identity which further strengthens and reaffirms their brand and reflects their corporate culture.

Steve’s tenant representation specializes within the Creative Industries. Having worked in the advertising industry before entering real estate, Steve is able to identify real estate opportunities that allow for a creative and inspiring work environment.

Voir l'expert