- What New Commons bought an apartment building in Parkdale
- Why The national nonprofit paid $215,000/unit
- What next The firm plans to establish affordable housing units
New Commons Development purchased an apartment building in Toronto for $17.6m with plans to establish affordable rental units, Green Street News can reveal.
The 82-unit building, at 182 Jameson Avenue, traded for $215,000/unit. Colliers’ Kyle Lindsay and Dayma Itamunoala marketed the property on behalf of an estate, with the transaction closing on June 6.
The deal marks the third-largest apartment trade in Toronto this year, according to Green Street’s Sales Comps Database. The high-water mark is the $44m sale of Marlester Manor at 1175 Broadview Avenue, also purchased by a nonprofit organization.
The Jameson property also received interest from buyers looking to renovate units to increase revenue, as all of the units carry market rents. That said, the average in-place rent at closing was $919 – less than half of the Toronto average, according to the latest Rentals.ca report
New Commons, a nonprofit affordable housing builder with offices in Vancouver and Toronto, plans to officially designate units in the 11-storey building as affordable. It has tapped WoodGreen, Toronto’s largest non-municipal affordable housing provider, to manage the property.
The plans to convert to affordable housing have received support from the City of Toronto, which in April agreed to lend New Commons $11.9m. The buyer obtained two additional loans on the property: $2.3m from its own fund, NMF Rental Housing Fund II GP, and $7.2m from FirstOntario Credit Union.
In Toronto’s Parkdale neighbourhood, 182 Jameson is 200m south of Queen Street West and 200m north of King Street West. It is 600m from the Gardiner Expressway and less than 2km from the Exhibition GO station.
