The 32-storey, 462-unit, luxury rental apartment building, One Park Central, overlooking Calgary’s Central Memorial Park, has been put on the market by the US firm Hines..Canadian Mortgage Professional (CMP) reports Hines is a real estate company with nearly $96 billion in assets under management and “is pitching international investors on the apartment building deal as a way to bet on the country’s tight housing market.”.The building completed construction three years ago and is priced at CAD$200 million (US$147 million), according to Avi Tesciuba, head of Canadian operations at Hines..Rents in Calgary, and across Canada, have risen dramatically, as low mortgage rates and a record amount of immigration severely reduced housing supply and now in the for-sale market, higher mortgage rates and a lack of homes being listed are squeezing buyers, putting more pressure on rental accommodations..“We believe long term in Canada and it starts with population,” Tesciuba said in an interview. “The housing supply has frankly been very slow to respond to this population change, and therefore, the housing shortage that we’re seeing now is expected to intensify in the coming years.”.Alberta, and Calgary, have seen a record number of international and inter-provincial in-migration, particularly over the last year as lower housing costs have drawn migrants from Ontario and BC, pushing the rental vacancy rate down to 2.7% in Calgary, the lowest since 2014, according to Canada Mortgage and Housing Corporation..Tesciuba says Hines is selling One Park Central to return profit to investors at a time when it believes the market is favourable, says CMP, with the aim to close the sale by early fall. A second tower measuring 40 storeys, adjacent to One Park Central, is under construction and scheduled to be completed in 2024..One Park Central is described as the height of rental accommodations, with one- and two-bedroom units and amenities that include a city-view pool deck, club-caliber fitness center, SkyLounge rooftop lounge, sport lounge, and a Pet Spa. Monthly rental costs are available by request..“Despite Canada’s population growth, new apartments are relatively rare. Most efforts have been focused on condominium buildings, which are perceived as less risky to construct since developers can line up financing from buyers in advance,” reports CMP..Finding more buyers for apartment buildings could provide more of an incentive for developers to pursue these types of projects, said Tesciuba..“You’re taking a major risk,” he said, referring to a developer such as Hines starting on an apartment project. “Knowing capital will be available and interested on the exit gives you more comfort in making that big bet.”.The sale is being managed by brokerages RBC Capital Markets Real Estate Group and Avison Young.
The 32-storey, 462-unit, luxury rental apartment building, One Park Central, overlooking Calgary’s Central Memorial Park, has been put on the market by the US firm Hines..Canadian Mortgage Professional (CMP) reports Hines is a real estate company with nearly $96 billion in assets under management and “is pitching international investors on the apartment building deal as a way to bet on the country’s tight housing market.”.The building completed construction three years ago and is priced at CAD$200 million (US$147 million), according to Avi Tesciuba, head of Canadian operations at Hines..Rents in Calgary, and across Canada, have risen dramatically, as low mortgage rates and a record amount of immigration severely reduced housing supply and now in the for-sale market, higher mortgage rates and a lack of homes being listed are squeezing buyers, putting more pressure on rental accommodations..“We believe long term in Canada and it starts with population,” Tesciuba said in an interview. “The housing supply has frankly been very slow to respond to this population change, and therefore, the housing shortage that we’re seeing now is expected to intensify in the coming years.”.Alberta, and Calgary, have seen a record number of international and inter-provincial in-migration, particularly over the last year as lower housing costs have drawn migrants from Ontario and BC, pushing the rental vacancy rate down to 2.7% in Calgary, the lowest since 2014, according to Canada Mortgage and Housing Corporation..Tesciuba says Hines is selling One Park Central to return profit to investors at a time when it believes the market is favourable, says CMP, with the aim to close the sale by early fall. A second tower measuring 40 storeys, adjacent to One Park Central, is under construction and scheduled to be completed in 2024..One Park Central is described as the height of rental accommodations, with one- and two-bedroom units and amenities that include a city-view pool deck, club-caliber fitness center, SkyLounge rooftop lounge, sport lounge, and a Pet Spa. Monthly rental costs are available by request..“Despite Canada’s population growth, new apartments are relatively rare. Most efforts have been focused on condominium buildings, which are perceived as less risky to construct since developers can line up financing from buyers in advance,” reports CMP..Finding more buyers for apartment buildings could provide more of an incentive for developers to pursue these types of projects, said Tesciuba..“You’re taking a major risk,” he said, referring to a developer such as Hines starting on an apartment project. “Knowing capital will be available and interested on the exit gives you more comfort in making that big bet.”.The sale is being managed by brokerages RBC Capital Markets Real Estate Group and Avison Young.
