$11M real estate buy a boon for city: analyst
Multimillion deal shows confidence in Edmonton’s economic recovery: official
A multimillion-dollar Edmonton property purchase is an indication investors are confident in the city’s ability to bounce back from the economic strain brought on by COVID -19, says one analyst.
Firm Capital, a boutique real estate capital bank based in Toronto, bought a two-building Edmonton portfolio on April 1 for $11 million. Included in the sale are warehouses at 5618 76 Ave. and 3921 81 Ave.
Firm Capital could not be reached for comment Wednesday. A transaction sheet for the sale states both properties will be 100 per cent leased at the sale date.
The agreement also shows plans for 3921 81 Ave. in Leduc to be divided into five bays. The sale encompasses 90,348 square feet of building area.
Keith Reading, director of research for national real estate company Morguard Corporation, said the purchase shows investors are confident in Edmonton.
“It is an indication that investors are confident in Edmonton’s longer-term economic outlook and that the property will continue to attract tenants that will pay their rent,” said Reading.
“They are looking for income security, they’re looking for basically full buildings or close-tofull buildings where they’re pretty confident that tenants will pay the rent.”
Reading said there remains a market in Edmonton for buying and selling industrial and rental properties during the ongoing COVID -19 pandemic.
Alberta was particularly hard hit during the pandemic-induced recession. The province’s economy was also hit in March by plummeting oil prices spurred by Saudi and Russian producers flooding the market.
With the first wave of the virus beginning to subside, Reading said Edmonton has a number of things going for it as the economy scales upwards. He said diversification and moving away from relying heavily on oil should help markets return to normal more quickly.
“Are we in as bad of a position as people think? I don’t think so,” said Reading. “I think Edmonton will eventually come back. It’s like a lot of things, it’s going to take time.”
Reading was unable to pull Edmonton specific data but a Morgaurd second-quarter update on Canada’s economy showed spending patterns across the country have improved and the national job market “came back to life.”