Why a provincially backed firm spent $22M to bulk-buy unsold condos along Toronto’s Eglinton LRT - Toronto Star

Bulk purchases made up 30 per cent of new condo sales in the second quarter, according to data firm Urbanation.

Forty-three units in the Line 5 condos near Yonge Street and Eglinton Avenue have been purchased by High Art Capital, backed by the province’s Build Ontario Fund.

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The provincially backed but privately owned investment firm High Art Capital has bought 43 unsold condos near Yonge Street and Eglinton Avenue for $22.3 million, according to land registry records — an average of about $518,600 per unit, or $797 per square foot.

The bulk sale is a steep discount to the $1,008 per square foot buyers paid for new condos individually across the Greater Toronto and Hamilton Area in the second quarter, according to market researcher Urbanation, and offers a glimpse into how Toronto’s condo market is being reshaped by weak demand, a growing number of completed units and investors willing to buy large blocks of homes at a discount.

Though High Art did not confirm or comment on the details of the transaction, citing confidentiality, spokesperson Laryssa Waler said the firm’s strategy remains focused on turning unsold condos into rental housing.

“The fund’s strategy is unchanged: acquire completed, unsold condominium units across the GTA and operate them as long-term rental housing, with a meaningful affordable component protected in perpetuity,” Waler said.

The fund plans to hold the condos for at least five years before selling them to investors. Of the roughly 2,200 units High Art plans to acquire, about 550 are to be rented at below-market rates and remain affordable through legal agreements.

Jesta Group plans to purchase $500 million worth of condo units, crediting Ontario’s HST rebate.