- What An apartment building at 810 Royal York Road sold in late June for $15m
- Why The seller wanted to offload the property before the new capital gains tax rate took effect
- What next A private wealthy individual bought it
A 60-unit apartment building in Toronto changed hands for $15m in late June, Green Street News can reveal, with the deal closing in just four days.
An offer on the six-storey building at 810 Royal York Road in Etobicoke’s Stonegate Queensway neighbourhood came in just days before the new capital gains tax rate was to take effect on Tuesday, June 25. To avoid the tax, the deal, which was contracted on the previous Thursday, was swiftly closed on the Monday.
Colliers handled the sale, which carried a 4.3% capitalization rate. The buyer and seller are both private wealthy individuals.
The seller, who owned the building for 60 years, tried to offload the property two years ago and received a conditional offer for $18.3m. However, soil contamination was discovered and the front yard needed to be remediated.
The building, constructed in 1960, is 95% occupied with an average rent of $1,331. Market rent in the area is $1,875, according to Colliers marketing materials, leaving room for substantial rent increases upon tenant turnover.
The property has a 60-stall surface-level parking lot. It is roughly 1 km south of Royal York station, accessible via the bus route that stops in front of the building.
A handful of other midrise apartment buildings have traded in Toronto so far this year. Lankin Investments pick up 25 Lorne Avenue ($16.8m) and 1640 Lawrence Avenue West ($25.9m) in February and June, respectively. In January, Realstar Group purchased the recently built Junction Factory Apartments at 3385 Dundas Street West for $88m.