Edmonton Investment Transaction Stats – Q2 2018
Edmonton Q2 Commercial Activity Boosted by High Transaction Count
A total of 223 transactions in excess of $500k were recorded in the second quarter of 2018 for a total investment value of $1.2 billion
Edmonton ‒ Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced the Edmonton market area’s real estate investment results for Q2 2018. In total, $1.2 billion worth of transactions were recorded, a 42% increase from the previous quarter and a 101% increase from Q2 2017.
Source: Altus Group
Apartment and industrial led the way in Q2 2018, together contributing a total of $694 million in transaction value representing 60% of the overall market. Retail rounded out the top three, recording $236 million, or 21% of the total investment in the quarter.
A large apartment portfolio transaction, which was agreed upon in November 2017, was closed on in Q2 2018. This was the acquisition of five properties comprising 775 seniors home units by Chartwell Retirement Residences at a price of $298 million and a reported cap rate of 6.2%. This transaction accounted for three-quarters of the $393 million in total investment activity for the apartment sector.
The office sector saw 13 transactions worth $36 million. This represents a 43% increase from the previous quarter and a 13% increase from Q2 2018. A noteworthy transaction was the $22,000,000 deal for the Enbridge Tower at 10201 Jasper Avenue N.W. The property was sold by Bentall Kennedy to a local hotel operator and developer (Lighthouse Hospitality Management Inc.), and it is understood that the purchaser has plans to convert the office into a hotel and long-stay residence containing approximately 300 suites. According to the Altus Investment Trends Survey, office cap rates are trending upwards in Edmonton.
The retail sector saw gains from both the previous quarter and the quarter of the year prior of 14% and 43% respectively. In total, 43 transactions worth $236 million were recorded, the second biggest quarter on record since Altus Group began tracking the Edmonton market area in 2013.
The industrial sector also had its biggest quarter on record since Altus Group began tracking the Edmonton market area. Q2 recorded 64 transactions and a total value of $301 million. This represents a 53% increase from the previous quarter and a 51% increase from Q2 2017. The largest transaction was the Sunwapta Business Centre, a three building, 415,557 square foot complex that sold for $62,954,334 to Fiera Properties. The majority (approximately 62%) of the industrial transactions purchased in Q2 were acquired by private Canadian investors.
The only sector in Q2 recording a year-over-year decline in overall investment was the residential land sector. In total, 15 residential land sales were captured for a total of $31 million. This represents a drop of 58% from the previous quarter and a 14% drop from the same quarter last year.
“While a significant portion of the Q2 commercial investment total was attributed to a deal that occurred in late 2017, the high number of transactions noted this quarter is indicative of strong private investor interest and activity in Edmonton,” noted Ben Tatterton, Manager, Data Solutions at Altus Group.
ABOUT DATA SOLUTIONS
Data Solutions connects the Canadian real estate industry through the delivery of data with unparalleled breadth, integrity and relevance. We cover new homes, investment transactions and commercial market inventory in key markets, and also provide intelligence on the national housing market and consumer home buying and borrowing patterns.
Our solutions are used by real estate industry stakeholders to gain market intelligence, identify and validate opportunities, benchmark, strategically plan, manage risk and more.
Data Solutions is part of Altus Analytics, the software and data solutions business of Altus Group, where our focus is to empower real estate clients and partners to work collaboratively to enhance decision making, drive performance and optimize transactional efficiency. Our solutions enable firms to better organize and manage data and connect with the right information and analytics to help them gain a complete picture of real estate assets, portfolios and transactions.
For more information on Data Solutions, please visit www.altusgroup.com/datasolutions.
ABOUT ALTUS GROUP LIMITED
Altus Group Limited is a leading provider of independent advisory services, software and data solutions to the global commercial real estate industry. Our businesses, Altus Analytics and Altus Expert Services, reflect decades of experience, a range of expertise, and technology-enabled capabilities. Our solutions empower clients to analyze, gain insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,500 employees around the world, with operations in North America, Europe and Asia Pacific. Our clients include some of the world’s largest real estate industry participants across a variety of sectors. Altus Group pays a quarterly dividend of $0.15 per share and our shares are traded on the TSX under the symbol AIF.
For more information on Altus Group, please visit: www.altusgroup.com.
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