Greybrook Realty Partners Inc. is pleased to announce the successful deployment by its managed issuer of $12,775,000 in equity to acquire and subsequently manage the development of a parcel of land located in Colgan, Ontario. The property is co-owned with Tribute Communities and is expected to be developed into a 307-unit low-rise residential community. The common intention of Tribute Communities and Greybrook is to develop the property in combination with a 199-acre parcel of adjacent land, located directly north of the site. This adjacent parcel was acquired by affiliates of Tribute Communities and Greybrook in 2015. The development site, together with the previously acquired parcel, is expected to bring 622 new homes to the Colgan community.
Colgan is a growing region north of the Greater Toronto Area (GTA) and is next to the expanding community of Tottenham. Situated within one of the fastest growing regions in Ontario, South Simcoe County, the area has recently experienced strong residential housing demand with a year-over-year increase in home prices of 18.54%, according to the May 2016 Toronto Real Estate Board MLS Home Price Index. Demand for single-family homes in developing regions like Colgan has been driven in part by record low inventory levels and rising prices of single-family dwellings within the GTA that have priced many homebuyers out of the market.
“Expanding our footprint in Colgan with our partner Tribute Communities was an easy decision,” said Peter Politis, CEO of Greybrook Realty Partners. “This investment is in line with our focus on acquiring prime low-rise development assets across the Greater Golden Horseshoe region. We see compelling reasons to grow our portfolio in this asset class as increasing affordability constraints and spatial preferences of many GTA buyers are fueling strong demand for ground-related housing in markets peripheral to the GTA. The imbalance in supply and demand that currently exists in the market provides a real opportunity for those who own attractive low-rise development opportunities in growing regions surrounding Toronto,” stated Mr. Politis.
This project represents Greybrook’s fifth co-venture with Tribute Communities. “Our strategic partnership with Tribute enables us to continue to shape the growth of communities that meet the real needs of a growing population,” commented Mr. Politis.
The portfolio of low-rise development holdings managed by Greybrook Realty Partners includes over 800 acres of land in Southern Ontario. The development of these properties is projected to result in the completion of over 4,000 single-family homes in the Greater Golden Horseshoe region.