TORONTO — Tricon Capital Group has announced plans for a new 600-unit project in east Toronto that will contain an even split of rental and condo units.
Construction of the project at 7 Labatt Ave., south of Regent Park, is expected to start mid-2020 with a late 2023 completion date, said a Feb. 5 release.
Tricon’s interest in the project site was acquired from TAS, a mixed-used developer, and the project will be developed in partnership with TAS.
The total equity commitment for the project is approximately $80 million, with 30 per cent from Tricon, 50 per cent from an institutional investor and 20 per cent from TAS.
Other Tricon projects currently under construction or with imminent starting dates include the Taylor at 57 Spadina, with 286 units, set for completion in early 2021; two builds in the West Don Lands with a total of 1,500 units due to launch in the second quarter of 2019 and set for wrap up in 2023; and 8 Gloucester, with 232 units, targeted to start in the fourth quarter of 2019 with a finish scheduled for the third quarter of 2022.
“Tricon has committed to building a market-leading purpose-built rental platform in Toronto and continues to execute on this plan with the addition of its latest project in the thriving Corktown neighbourhood. Even in the context of a competitive land market, we have been able to secure compelling sites at an attractive land basis by partnering with strategic developers and institutional investors seeking long-term cash flow,” said Tricon president and CEO Gary Berman in the release.
The statement said Tricon is investing in Toronto given its strong rental economics, with immigration in excess of 100,000 each year, a diverse economy, “high quality of life and growing status as a global city.”
“During 2018, year-over-year rental growth topped 10 per cent and vacancy remained very constrained at less than one per cent, according to UrbanRental,” said Berman in the statement.
“Tricon is at the forefront of providing class-A multi-family rental apartments within the most sought-after locations across the city, and is leveraging 30 years of development experience to pursue strong investment returns for our investment partners and shareholders.”