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For Ashlar Urban Realty's managing partner Jeff Thomas, the big deal story of 2013 was a no-brainer--Bayview Village, going for $500M. (To give you an idea of the size of that, if you took all that money in $100 bills, the stack would be nearly 1,800 feet high.)  There was the larger inner city urban trade of 78-92 Yorkville as well--$53M (nearly $2k per SF--another sign of the demand for premium urban retail assets. Overall, for Jeff, the growth and activity in the retail sector stood out over all others. Retailers are more active in the urban space, Jeff says, developers are jumping on opportunities, and private capital is seeking smaller retail acquisition opportunities for long-term appreciation. "On a larger scale we have seen transactions by institutional investors for urban Toronto retail assets that underscore the belief in this asset class appreciating over the longer term," Jeff says. There have been big bets by some on owning space that will benefit from the fruits of intensification either periphersally through a larger retail customer base or directly through redevelopment, Jeff adds. (Jeff is next to colleague Paul Smith.) |
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AY Bulks Up Advisory Team AY-ers just welcomed Rodney McDonald as SVP of consulting and advisory services. Rodney's broad role is to consult and advise clients on long-term real estate strategy and implementation. Sustainability will key to what he works into AY's services; based out of the company's global HQ in Downtown Toronto, he can see and feel the benefits: "I am sitting in an office with a raised floor providing fresh air continuously, in a new LEED Gold building, close to Union Station, so I can take the subway to work everyday."  He sees the same looking out his window at Toronto's financial district, with new and existing LEED certified buildings. "It's everywhere." His green building and energy efficiency expertise goes back to his being founding chair of the Manitoba Chapter of the Canada Green Building Council. Pictured: the LEED certified Royal Bank Plaza, reminding us, in its own subtle way, of our own insignificance. |
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In Hot Pursuit of Foreign Assets A shrinking domestic property market—look at how much Bayview Village sold for ($500M) is driving Canadian pension funds and REITS into foreign investments, according to JLL. (Our theory that REITs just want to be closer to British star of Homeland Damien Lewis remains unconfirmed.) The VP of the firm's International Capital Group Lucy Fletcher tells us Canada is on pace to surpass the record high for direct investment in international real estate--$11B, set in 2011. The Canadian office market is largely confined to nine major cities, about 400M SF—the size of the Manhattan market. Combine that with investors' healthy appetite for real estate (Canadian pension funds typically allocate 10% to 15% of their capital to it) and you have this push.  Lucy says Canadian firms lead the way when on entering "smart partnerships" abroad—JVs, or more passive investment with companies that better understand a target market. "And there's repeat business there," she says. "They are just not parking capital into one, large $500M transaction, there are opportunities for future deal flow through these relationships." China is a new market for Canadian funds, she adds. "We are known for being smart investors, seeking out good opportunities. And Canadian investors are conservative. Everyone knows how well Canada fared through the global financial crisis." (Is that the juiciest gossip people can spread about us?) In the image is Bayview Village. |
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Gehry/Mirvish Projects Heads to OMB |
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 There's an interesting debate surrounding the proposed Mirvish condo/retail base project on King Street, in the Entertainment District, designed by architect Frank Gehry. The plan involves demolishing the Princess of Wales Theatre and four heritage warehouse buildings to allow for three condo towers—each more than 80 storeys, just east of John Street. The city's chief planner Jennifer Keesmaat says the project must be scaled back for her to back it. The project has been appealed to the Ontario Municipal Board. Given the opposition from planning to city council, approval will now rest with the OMB. |
 We thought we'd ask Allied CEO Michael Emory, whose company has made a mark combining heritage structure with new development, for his thoughts. "The context is important," in the case of the Gehry/Mirvish project, Michael says. The sites are very close to, if not squarely within, Toronto's downtown core. "I personally believe that Gehry's involvement should override any concerns about preserving the heritage structures," he says. What are your thoughts? Send them to mark.keast@bisnow.com. |
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