Consistent Demand for Toronto Rental Properties
There are several new construction projects underway in the downtown core of Canada’s city of Toronto that suggest some developers see a solid future in creating new rental accommodation.
Most of the new rental housing stock in Toronto arrives via condo towers, but there are rare exceptions such as Motion; 463 rental suites with 11,500 square feet of retail space, nearing completion at Bay and Dundas.
It’s being built by Vancouver-based Concert.
Concert’s Chairman and CEO David Podmore is heading the charge, which is controlled by 19 pension funds. “It’s counter-intuitive for lots of people,” he told Biznow.com on a recent visit. “We’re certainly the largest builder of rental properties, though that isn’t saying much these days.”
Since 2003, Concert Properties have completed nearly 1,500 new rental residential units in Toronto. They believe there will always be a demand for rental housing in Toronto’s core in some part due to traditional immigration patterns.
David says the model works because demand is consistent, allowing purpose-built rental buildings an opening return of 6.5%. “Coincidentally, that’s the threshold most pension plans need to meet obligations. We aren’t looking to acquire and we don’t build to sell. It’s simple, and it suits the long-term needs of the plans.”
From an investor perspective, Concert wants to be a long-term holder of income producing properties.
Founded in 1989, Concert specializes in developing rental apartments, condominium homes and retirement communities, acquiring and developing commercial, industrial and infrastructure properties and in-property management.
With operations in British Columbia, Alberta and Ontario and the backing of more than 200,000 Canadians represented by the union and management pension plans who own Concert, their commitment is to build strong, sustainable communities across Canada.