Fortress Sells Two Development Sites Amid Supply Constrained Market
TORONTO, May 1, 2017 /CNW/ - In April, Fortress Real Developments (Fortress) closed on the sale of two land transactions in Richmond Hill and Pickering. The Towns on Hall project in downtown Richmond Hill received OMB approval in early 2017 for 22 luxury 3-storey freehold townhouses and includes an existing heritage home that will be relocated and restored. The Brock Village project in north Pickering was recently reimagined as a 59 unit townhouse project, where a commercial and residential mixed-use development was previous proposed.
The supply of ground-oriented new housing supply has declined to the lowest point since the turn of the century, with just 932 units remaining according to Altus Group Data, a 68% decline year-over-year, and a drop from over 17,000 units in 2006. New home builders and developers are desperate for product, and the enquiries on the availability of sites has been frequent throughout the development community.
"With over 70 active real estate developments in our portfolio, we were comfortable disposing of a couple of our smaller sites, especially given the generous offers received for the Towns on Hall and Brock Village projects," said Fortress CEO Jawad Rathore. "We were happy to extract the value created through the approval and assembly or these sites, and offer thanks to our partners and consultants for the realization of our planning objectives," added Rathore.
The lack of a supply is a major contributor to the rapid rise in new home prices in the Greater Toronto Area. The Altus Group reported that new low-rise house prices in March topped $1.1 million, a 32% annual increase.
"We have seen first-hand that the appetite for new single-family and townhouses projects are insatiable," notes Senior Vice President Ben Myers, "our Stationwest project in Burlington with Adi Developments and Woodbridge Park project with Sierra Building Group in Vaughan had massive online registrations, huge opening day line-ups, and unprecedented sales velocity."
Earlier this year, Jawad Rathore remarked, "Fortress continues to seek out high quality real estate assets across Canada and our development team is able to bring immense value to all the projects in our portfolio. Real estate offers tremendous flexibility, with opportunities to exit a development at several different stages, and as we look forward, we anticipate a very busy 2017 as our portfolio of more than 70 sites matures."
For additional data and findings on the GTA housing market, download the latest Market Manuscript by Ben Myers.
Fortress Real Developments Inc. - Fortress is a Canadian real estate development company that seeks out and analyzes opportunities in major Canadian markets. The company is focused on quality projects with recognizable alpha in residential low-rise, high-rise, commercial and industrial market segments. For more information on Fortress projects, visit: https://fortressrealdevelopments.com
SOURCE Fortress Real Developments
For more information on Fortress projects, visit: https://fortressrealdevelopments.com
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