Lankin Investments’ Lankin Real Estate Growth LP has acquired an 80-unit purpose-built rental apartment at 33 Dawson Rd. in Guelph, Ont. for an undisclosed price.

Lankin president of private capital markets Ray Punn told RENX it was an off-market deal purchased through an existing relationship with an unnamed vendor. The acquisition involves Canada Mortgage and Housing Corporation financing.

“It's a strong fit for our Ontario multifamily portfolio and reflects exactly the kind of value-add opportunity we look for: a well-located asset with clear upside through disciplined execution,” said Punn, who added that 33 Dawson Rd.’s in-place rents are about 50 per cent below average for the city.

The seven-storey reinforced-concrete building was constructed in the early 1970s on a 1.9-acre lot. It offers 41 one-bedroom and 39 two-bedroom units along with: surface parking; two 12-passenger elevators; on-site laundry facilities; storage lockers; building-wide security cameras; and a natural gas back-up generator. 

“The benefit of two-bedroom (units) is it drives up a higher level of rent and there's a lot more demand for two-bedroom,” said Punn.

The Guelph apartment market

The property has potential infill upside and its location provides access to public transit, retail, schools, parks, the University of Guelph and Highways 6 and 401.

Guelph’s central metropolitan area population has grown by more than 10 per cent over three years to more than 180,000. The southwestern Ontario city, which has a diversified economy as well as the university, has historically had a rental housing vacancy rate of less than two per cent.

Two-bedroom unit rents in Guelph rose by about 32 per cent over the five years to 2025.

Value adds at 33 Dawson Rd.

The previous owner of 33 Dawson Rd. updated windows, elevators, the boiler, the generator, hot water and security cameras at various times over the past 13 years, but the unit interiors are largely original.

“The core draw was a significant gap between in-place and market rents with no prior substantial renovation — a clean value-add runway — in a market with strong fundamentals,” said Punn.

Lankin will conduct a phased value-add program for the property that includes:

• lobby and corridor modernization and lobby staging;
• maintaining and upgrading units as required;
• utilizing and repurposing unused space across the asset;
• balcony repairs, repaving, roof improvements, fire panel and emergency lighting.

Drake Property Management will be the property manager for 33 Dawson Rd.

Lankin’s portfolio

Vaughan, Ont.-based Lankin is a real estate investment firm specializing in institutional-grade Canadian multifamily assets. It manages a portfolio exceeding $2 billion in value, with more than 6,200 multifamily units under management that are primarily in Ontario but also in Alberta.

Lankin’s portfolio averages between 95 and 97 per cent occupancy, which Punn considers healthy.

“Anything lower, you’re probably charging too much rent, and anything higher than 97 means you're probably not charging enough rent,” he said. “Your sweet spot is 95 because you want turnover to capture the gap to market.”

The Lankin Real Estate Growth LP's mandate is to acquire under-valued or under-utilized multifamily and residential real estate, primarily in Ontario, and add value through active management and capital improvement.

The company also offers the Lankin Apartment REIT and is involved with institutional and direct private partnerships.

Recent and future acquisitions

Lankin made about $1 billion in acquisitions last year, in what was considered a soft market, and expects that total to be in the $600 million to $700 million range this year. 

“We're seeing a lot of institutional transactions taking place in Canadian real estate,” said Punn, who expects capitalization rates to compress significantly in 2028 and 2029. 

“It’s a great sign when institutional guys show up, but now it's more competitive for players like us.”

Lankin doesn’t buy new assets in Ontario because their rents are already at market rates so it focuses on properties built from the 1960s to the 1980s that are subject to rent controls but have a 30 to 50 per cent gap to market rents. With its buildings having an annual 15 to 20 per cent turnover, it can profitably capture that gap.

Punn said multifamily transaction activity has picked up this year and well-located, well-underwritten assets are finding buyers.

“Lankin takes a disciplined, criteria-driven approach to acquisitions and is always evaluating opportunities that fit our investment mandate: strong fundamentals, clear value-add potential and markets with resilient rental demand,” said Punn.

“We're not chasing volume, we're pursuing acquisitions that meet our investment criteria and make sense for our portfolio's long-term goals.”

Development activity

Lankin has more than 2,500 units planned for development in Ontario, including more than 1,000 in Brampton, in a pipeline valued at more than $1 billion.

While Punn wouldn’t disclose details, he said Lankin is “actively developing purpose-built rental communities as part of our broader strategy, and we continue to look for development opportunities that make sense.”