The Apartment Update: CMBs, Closings and the Fall Market

Good afternoon,

To our friends who observed Yom Kippur, I hope you had a meaningful day.

Fall is here. For apartment owners, that means locking in the snowplow contract and getting January's N1s ready. The [2027 guideline is 1.9%](https://www.ontario.ca/page/residential-rent-increases) for rent-controlled units, bearing in mind the 90 days' notice.

It's been a while since I sent one of these. Let's dig in.

A quick RTA update

Three changes that took effect yesterday, September 21, should help owners address unpaid and persistently late rent:

N4s: For new unpaid-rent notices, the minimum notice period is now seven days rather than 14, allowing owners to file an LTB application sooner if rent remains unpaid.

Arrears hearings: For applications filed from September 21, tenants generally must pay the landlord at least half the claimed arrears at least seven days before the hearing to raise additional issues.

Persistent late payment: Rent received more than seven days late, at least three times in six months, now expressly meets this test, subject to the rules on how payments are applied.

N12 compensation and renovation return-notice requirements also changed. Have your manager or paralegal review the [full LTB update and forms](https://tribunalsontario.ca/2026/09/21/ltb-operational-update-legislative-changes-at-the-landlord-and-tenant-board-effective-september-21-2026/).

What you may have missed since July 1

Three selected market transactions from our database:

BST Canada — Three-building Toronto portfolio: 487 suites, $143.8M ($295,329/suite)

Realstar — Wellington Towers, Aurora: 204 suites, $85.5M ($419,118/suite)

Lankin Investments — 1617 & 2275 Victoria Park Avenue: 128 suites, $31.4M ($245,313/suite)

Source: Altus

$260.7 million across those three transactions alone. Across the broader market, we continue to see a diverse mix of purchasers: private, institutional, non-profit and new entrants. The right opportunities are attracting competitive bids.

We've been busy too

A few recent closings by our team that we can talk about:

75 Spencer Avenue, Toronto: 72 units

49 St. Mary's River Drive, Sault Ste. Marie: 102 units

56 South Forster Park Drive, Oakville: 15 units

160–200 Chalkfarm Drive, North York: 1,212 units

165 Colborne Avenue, Richmond Hill: 40 units

Where the market stands

The recent increase in bond yields has created some apprehension, particularly among buyers working through financing. The five-year CMB is approximately 3.70% this morning, and the speed of the increase has caught some people off guard. That said, financing remains in a relatively good position compared with fall 2023, when the same benchmark was approaching 4.8%.

We continue to see strong interest and competition for the right opportunities. Bid depth is property-dependent, but new buyers are coming to the table across different asset types. The breadth of that interest remains encouraging.

Market rents are also moderating. Many of our clients are reporting an uptick in interest from prospective tenants versus a few months prior.

The federal government's [push to attract infrastructure capital and improve incentives for business investment](https://www.pm.gc.ca/en/news/news-releases/2026/09/15/first-canada-investment-summit-unleashes-nearly-500-billion-new) is also encouraging. For apartment owners, I see the longer-term benefit in where those commitments translate into projects, employment and rental demand.

We're scheduling meetings with institutional and private groups over the next few weeks to discuss our Q3 market analysis. If you'd like a more detailed view of recent transactions, buyer activity and what it means for your portfolio, reach out to my team and me. We'd be happy to arrange a time.

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