BST Canada has acquired three Toronto purpose-built rental apartment buildings comprising almost 500 units for $143.8 million from LASH Group of Companies.

“They’re solid, highrise concrete buildings with great access to public transportation and have been well-maintained,” BST Canada president Alaa Tannous told RENX.
 
“We bought them from a family that built these buildings and are selling right now. The price was also within our target pricing.”

The Toronto-based, family-run LASH Group has been involved with the design, development, sales and construction of multifamily residences, single-family homes, and commercial, industrial and retail properties for more than 70 years.

The three apartment buildings benefit from proximity to retail, schools, universities, healthcare facilities and major employment centres, which will support long-term demand for rental housing.

The three apartment buildings

The JLL-listed apartment buildings acquired with in-house capital and money from institutional investors are: 

• the 57-year-old, 15-storey, 194-unit Village Gate at 775 Steeles Ave. W.;
• the 60-year-old, 10-storey, 129-unit Lauder Apartments at 640 Lauder Ave.;
• and the 54-year-old, 15-storey, 174-unit Godstone Place at 30 Godstone Rd. 

All of the buildings have high occupancy rates and underground parking. The majority of the units have one or two bedrooms, though there are a small number with three bedrooms. 

BST Canada plans to upgrade them and add amenities where possible to increase their appeal.

New acquisition platform

“At the beginning of this year, we started a new platform with two institutional investors where we have, at the moment, a commitment of $460 million in equity to invest in multifamily in Ontario,” said Tannous.
 
“This deal is the first we’re signing and there's more to come that we’re working on right now. The intention is to grow our multifamily portfolio substantially in Ontario, mainly with a focus on the GTA (Greater Toronto Area) and Ottawa region.”

Tannous added that BST Canada should appeal to sellers because it: can complete due diligence of a property within 10 days; is willing to waive conditions; and can close a deal within 60 days because “money isn’t an issue.”

BST Group and BST Canada

Toronto-based BST Canada is part of BST Group, an international real estate investment, development and construction company founded in Israel in 1972 by the Tannous family. 

BST Group specializes in large-scale residential, commercial and medical properties and operates across North America, Europe and Israel. The company completed an initial public offering on the Tel Aviv Stock Exchange in June.

BST Canada invests in, develops and manages real estate across Ontario — primarily multifamily properties and medical centres — through a fully integrated platform. Its in-house expertise spans acquisitions, investment analysis, due diligence, construction oversight and asset management.

BST Canada is actively pursuing institutional-quality multifamily properties comprising more than 100 units as well as larger portfolio acquisitions. It’s not contemplating multi-residential development at this point.

BST Canada’s portfolio

BST Canada’s current Ontario portfolio also includes: 

• the six-storey, 78-unit Maebrook Scott that sits on a 2.2-acre lot in Brampton where the company is looking to increase density to 385 units;
• the seven-storey, 200-unit Maebrook Reve in Ottawa;
• the two-building, 136-unit Maebrook Rideau in Ottawa;
• Maebrook Roseline, a 20,653-square-foot medical office building in Port Hope where BST Canada is looking to add a 68,000-square-foot commercial building on the site’s three additional acres currently occupied by 125 parking spaces;
• and a 29,000-square-foot commercial building with 110 parking spaces at 108 Angeline St. S. in Lindsay that’s largely occupied by medical-related tenants.

Champagne Centre

BST Canada and a partner also own the 270,000-square-foot Champagne Centre, a former Canada Dry bottling plant at 2 Champagne Dr. in Toronto that’s been transformed into a facility offering a wide range of health services, wellness-focused retail outlets and numerous professional services.

“It's like you're walking into a medical mall,” Tannous said of Champagne Centre. “You have all the medical services under one roof, with almost 70 doctors there and North York General Hospital occupying almost 10 per cent of the property for out-patient clinics.”
 
Future plans for Champagne Centre involve constructing two additional buildings that will provide 350 rooms for short-term and long-term stays to accommodate patients awaiting treatments or requiring recovery and rehabilitation.

Tannous believes the concept employed at Champagne Centre can work elsewhere and it’s looking for opportunities to recreate it, but the primary current focus remains on multifamily acquisitions.