GTA Investment Property Sales Transaction Statistics – Q2 2017
New Record Set for GTA Investment Property Sales in Q2 2017
Correction: Please note a correction was issued to this article on October 5, 2017 to properly reference the Country Club Golf course transaction in Vaughan.
The second quarter of 2017 saw a total of 736 investment property sales transactions over $1 million, representing a record total investment value of $6 billion with residential land sales accounting for 25% of total activity
TORONTO ‒ Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced results for the Greater Toronto Area (“GTA”) commercial real estate and land investment markets. The second quarter registered a total of 736 investment property sales transactions worth a record $6.0 billion, up 34% from the previous quarter. Residential land was the most active sector with 25% of the overall activity.
Source: Altus Group
The office sector posted 66 sales transactions in the quarter worth $1.4 billion, up 130% from the previous quarter and up a moderate 10% from the same quarter last year. The 66 transactions matched the record set in Q2 2016. The most notable sale of the quarter was 700 University Avenue, sold by Ontario Power Generation to Kingsett Capital for $433 million, representing a price per square foot of $355 and a cap rate of 5.9%.
The industrial sector had a total of 140 transactions in Q2 2017, an increase of 21% from last quarter. It was also the second highest quarter in terms of total dollar volume, reaching $971 million, just shy of the record $983 million traded in the second quarter of 2013. The most notable transaction for the quarter was the sale of 8875 Torbram Road in Brampton, a fully leased 895,038 square foot warehouse and distribution facility, sold by Carttera to Concert Properties. The sale price was $158,250,000, representing a going-in yield of 3.96%.
Consistent with the theme for the quarter, a record was also set for the number of GTA retail transactions with 175 sales totaling $831 million, up 99% from last quarter and 15% from the same quarter last year. The most notable transaction of the quarter was the sale of Promenade Mall in Vaughan, from Cadillac Fairview to Liberty Development Corporation & Serruya Private Equity, for a total of $249,000,000, representing a cap rate of 5.5%.
ICI Land sales set a record in Q2 for dollar volume, with a total of $582 million in investment deals. The top two transactions were both future office developments in the Downtown Core. Oxford Properties and Canada Pension Plan Investment Board purchased 30 Bay Street & 60 Harbour Street, a total of 1.799 acres for $96,000,000. Hines and Ivanhoe Cambridge purchased 141 Bay Street, a total of 1.697 acres for $35,000,000. These two sales alone represented 22% of the total second quarter ICI Land investment.
Residential land remained the strongest sector for GTA investment property sales. There were a record amount of medium density transactions, a total of 77 deals, accounting for 38% of the 197 second quarter residential land transactions. The total dollar amount invested in the second quarter for medium density was $326 million, slightly down from the previous quarter. The most notable residential land transaction of the quarter was the sale of the Country Club Golf Course in Vaughan. Clubhouse Developments Inc., led by RGF Real Estate Fund LP (RGF), purchased the 290 acre property from The Toronto Region Board of Trade for $220,000,000.
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.
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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.
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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 market insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,300 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.
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