$220.7 Million Multifamily Portfolio Sale Completed in Ontario Canada by Institutional Property Advisors
TORONTO, Ontario, Oct. 22, 202o – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of the Premium Southwest Ontario Multifamily Portfolio, a collection of nine apartment assets totaling 1,024 units in Hamilton, London, and Sarnia, Ontario. The portfolio transaction value was $220.7 million.
“Over 98% occupied at the time of the sale, the portfolio was owned and operated by Homestead, Canada’s largest privately owned apartment landlord,” said Aik Aliferis, the IPA senior managing director who exclusively represented the sales process. “All the properties are located in markets with strong apartment fundamentals, high average household income, growing populations and strong employment hubs.” Aliferis and the IPA team conducted a competitive bidding process that yielded multiple offers from many institutional and large private clients. IPA was exclusively retained by Homestead Land Holdings Limited. The successful bidder was InterRent Real Estate Investment Trust & CAPREIT Apartments Inc.
“Despite turbulent times the market has experienced due to the pandemic, this is one of the two largest portfolio sales across Canada this year and the third-largest dating back to 1999,” added Aliferis. “The buyers had the opportunity to acquire a substantial multifamily portfolio with excellent long-term metrics that crossed three major Ontario markets.”
Southern Ontario is a manufacturing, technology and commercial industries hub with exceptional supply chain and logistics management that benefit from proximity to the U.S. border and access to North American markets. “Secure employment, world-class educational institutions and immigration continue to drive rental demand in the region,” noted Aliferis. “Between 2016 and 2019, the portfolio’s markets all saw desirable rent growth and occupancy remained above 97%.” Southern Ontario is home to notable employers such as St. Joseph Health Services, Hamilton-Wentworth School District, Stelco, London Health Sciences, 3M Canada, Imperial Oil and many more. Higher learning institutes include McMaster University, Western University, Ivey, Lambton College, Mohawk College and Fanshawe College. “Given uncertain times, the portfolio commanded excellent demand from prospective purchasers in the multifamily sector,” continued Aliferis. “Clearly, confidence in multifamily continues to be very strong.”
Markets with a robust tech, financial and government workforce could be more insulated from greater turmoil as these sectors have been less impacted, according to a recent IPA report on Canada, Beyond the Global Health Crisis. The report states: This will benefit property performance in Toronto, Montreal, Ottawa, and Vancouver as many higher-paid workers have been able to adapt to a work-from-home environment more rapidly.
Built between 1967 and 1978, the portfolio consists of nine properties located at: 35 Brock Street, 123 units; 600 John Street North, 110 units; 100 Main Street East, 295 units (including 62,856 SF office/retail) in Hamilton; 492 Springbank Drive, 107 units; 500-522 Gordon Avenue, 117 units; 527-531 Gordon Avenue, 78 units in London; 1202-1273 Pontiac Court, 194 units in Sarnia.
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About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com