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The year’s largest single asset I believe this is a result of many factors. One is new entrants or non-regional
investment sale of 2017 was the players either coming into or expanding their businesses in our market. We
acquisition of Fort Garry Business worked on the financing of a larger residential building in the downtown core that
Centre being a multi-tenant saw a partnership with a local partner and two non-local groups transact on one
commercial property located at of, if not the largest residential transaction of the year. This is simply one example
1100-1146 Waverley Street by yet of deals that show the underlying drive for firms to get more access to product
again a private local investment in our city as they realize its ability to weather economic headwinds and provide
group in September. The fully leased, a stable place for quality, long term growth.
institutional grade asset enjoys a Secondly, I think that with the risk in rising interest rates, groups were looking to
premium location in Fort Garry and buy new assets and lock in long term interest rates so they can take that risk of a
had been extensively renovated transaction off the table. Several clients we deal with purchased assets that have
in 2010-2012. Other meaningful medium term upside, but locked in seven or ten-year money to capitalize on a
single asset investment trades in stable rental rate increase program and pay off a sizeable portion of debt over the
2017 included the sale of 400 Tache term of the loan so that a potentially low capitalization rate today would correlate
Avenue directly across from the doors to good long term value once the term of the mortgage comes up for renewal.
of the St. Boniface Hospital, the sale
of 200 Portage Avenue being the Any big surprises from the pension funds and
Scotia Bank Building at the corner REITs? New market entrants?
of Portage and Main, and the sale of
100 Princess Street being the largest
multi-family transaction. DW: Both pension funds and REITs made net dispositions over the course of
2017 with the most significant transaction again being Allied Properties REIT’s exit
Without question given the smaller
from the Winnipeg marketplace and Investors Group’s sale of Fort Garry Business
pool of offerings in Winnipeg in 2017, Centre. The largest institutional purchase of 2017 was made by Timbercreek Asset
the intensity of demand for premium Management based in Toronto with their acquisition and planned redevelopment
investment properties was either of the Medical Arts Building at 233 Kennedy Street.
maintained or likely even increased Moving into 2018 we expect pension funds, REITs, and institutional investors
suggesting competition for top to remain very interested in Winnipeg’s real estate investment offerings and do
tier investment listings is certain expect more typical sale volumes in 2018 as a number of larger scale assets are
to remain high as we move into currently being marketed.
2018. It is also important to note that CA: Nothing that happened in 2017 surprised us per se. All the major Pension
not a single asset or portfolio traded Funds and REITs that are active in our region remained active. However, the
over $50 million in 2017 also helping recent entrants to the market continue to have a very large appetite for more
product in Winnipeg as a continued sense of portfolio balancing seems to be
to explain the decline in overall
prevalent among both new entrants and local player.
transaction activity.
CA: It sure felt like there was an
increase in transactional volume in
2017. Although we are not a real
estate brokerage that tracks resale
numbers as we focus on financing,
our office in Winnipeg did close to
$650 million in financing transactions
last year, which was an improvement
on our 2016 volume. This number
was on deals done throughout
Western Canada, but the Winnipeg-
only volume was a little more than
half of the total volume done by our
team here.

62 Manitoba 2018 Commercial Building Directory