Record Year for Land Swaps?
Land deals for residential properties are spiking, RealNet Canada research manager Richard Vilner tells us. Of the $3.1B in overall real estate activity recorded in Q3, 27%, or $821M, came via land sales for future residential developments, more than half of them high-density mixed-use projects. “That’s greater than we normally see,” Richard says, noting the last quarter was the second best on record in terms of dollar volume for land deals (Q4 2011 hit $855M).
Q4’s biggest deals: China-based Greenland Group’s acquisition of King Blue condos (for $113M, the top-priced sale in 2014); Lee Development Group’s purchase of 88 Queen St E (with plans for a 1.3M SF multi-tower mixed-use project); and Greybrook’s acquisition of 215 Lake Shore Blvd W, slated for a 1.8M SF development, according to RealNet. Pointing to Mizrahi Developments’ recent purchase of legendary Stollerys at the southwest corner of Yonge and Bloor (reportedly for more than $100M), plus adjacent lands, Richard predicts residential deals could make 2014 a “record year” for commercial real estate.