Attesting to the evergreen status of the asset class, a $15-million transaction for two multi-family properties has just concluded in Ottawa.
Earlier this week, Marcus & Millichap announced that two mid-rise apartment buildings were just sold by its Institutional Property Advisors (IPA) division.
The properties involved in the transaction were the five-storey 50 Selkirk Street, which offers 75 units in 52,635 square feet, and the four-storey 350 Mayfield Avenue, coming with 61 units in 37,730 sq. ft.
“Private and institutional clientele continue to show strong interest in Canadian multifamily assets and although opportunities are limited at times, our deep reach and strong client relationships give us the edge in completing transactions,” IPA senior managing director Aik Aliferis said.
“These two apartment assets are situated within a primarily residential neighborhood that has become increasingly popular with young families.”
The property type has become even more valuable due to the boosts provided by the local economy, according to a new Engel & Völkers analysis. The average sales price of a condo-class asset in Ottawa stood at $307,659 last month, growing by 14.3% year-over-year.
A major motivating factor in the trend is the 8.8% population growth impelling the city’s economic engine. For comparison, the overall national growth rate was at 5.9%.
“With the market absorbing condos at a faster rate, coupled with the market’s population growth, there is a high probability of the local government approving more condo projects in the near future,” Engel & Völkers stated.
“As a result of more condo projects flooding the market and the local economy evidencing steady growth, Ottawa will likely continue to be an emerging hot housing market in Canada.”