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policyenthusiast said:
A private equity fund (I think it's called Twenty8 capital) buying up majority interests in Edmonton condo corporations which are struggling to maintain fiscal health. They can use the majority interest to force the remaining owners to sell, even at a loss. They can also dissolve the condo corporation (after liquidating the held capital) and turn it into rentals. This is mostly happening with low-rises and in Downtown, from capital being redirected out of Toronto and Vancouver, and into Edmonton and Winnipeg.
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This is who I mentioned was behind the recent acquisition of Hillside Estates on 104 street a few weeks back. Not going to go too much into details, but some shady **** went on there.

These guys are clowns
 
VaultBoy said:
Yes, sorry I was referring to this one. I grabbed @StoneCutter099 pic from the Norquest thread:
View attachment 703253
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Screenshot 2025-12-17 at 10.10.17 AM.png
 
^ 'O that massing concept is already outdated by recent developments -- the TRCCC building is more southerly than shown and is an entirely different form; also the entry park on 109th street has also shifted more southerly (its current built form) and is now pretty much centered between 102 Ave. and 103 Ave.
 
policyenthusiast said:
A few updates. A rent-to-own company from Ontario is coming to Edmonton, with plans to buy a large amount of our affordable homes and then sell them at a premium through a rent-to-own model. Appreciation of 5% annually is added regardless of market shifts.

A private equity fund (I think it's called Twenty8 capital) is buying up majority interests in Edmonton condo corporations which are struggling to maintain fiscal health. They can use the majority interest to force the remaining owners to sell, even at a loss. They can also dissolve the condo corporation (after liquidating the held capital) and turn it into rentals. This is mostly happening with low-rises and in Downtown, from capital being redirected out of Toronto and Vancouver, and into Edmonton and Winnipeg.

Downtown's overall market is still in a decline (or more optimistically, stable), as of Q3.
View attachment 703187

Mark my words, in 3 years we will lament the loss of the current prices you see in Edmonton's market. Many more Edmonton residents will be tenants of Ontario landlords, and it will be much harder to own a home in the City as a young professional. I am concerned, and I don't expect any legislation will come forward to stop the change on the horizon.
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Not a finance guy at all, but could it be possible they're leveraging private capital to buy out enough units to take control of a building, convert to rentals, then refinance it via favorable (high LTV, long amortization) CMHC lending to take out equity while generating steady cash flow? These older buildings might not score well on energy efficiency BUT would likely score major points in affordability, given their generally far below average market rents.
 
northlands said:
Not a finance guy at all, but could it be possible they're leveraging private capital to buy out enough units to take control of a building, convert to rentals, then refinance it via favorable (high LTV, long amortization) CMHC lending to take out equity while generating steady cash flow? These older buildings might not score well on energy efficiency BUT would likely score major points in affordability, given their generally far below average market rents.
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That is exactly what they are doing. It’s actually a great business plan when CMHC insurance is involved. 28 capital bought my condo unit last year. I was the 3rd last to sell so I got a little higher than most of my neighbors.

There are at least 4 groups in Edmonton that I know of that are actively doing this. From what I think I know, 28 capital is the largest with the most units.
 
FrankRizza said:
That is exactly what they are doing. It’s actually a great business plan when CMHC insurance is involved. 28 capital bought my condo unit last year. I was the 3rd last to sell so I got a little higher than most of my neighbors.

There are at least 4 groups in Edmonton that I know of that are actively doing this. From what I think I know, 28 capital is the largest with the most units.
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Anyone know where there is more information available about this? It seems like very few people know it's happening, but it's kneecapping Edmonton's affordable housing stock.
 
policyenthusiast said:
Anyone know where there is more information available about this? It seems like very few people know it's happening, but it's kneecapping Edmonton's affordable housing stock.
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There were some reddit threads on people mentioning condos being bought out over the last few months, but this forum is the first place where I got anything close to a "story" regarding any of this. I wouldn't have known until you brought it up.

I'm sure we have some CBC or CTV staffers who lurk here who might want to give this a look lol
 
Hm, a small 4-storey building across the alley from us (bottom of the stairs on 104 St, down the hill from Hillside) has recently been completely revamped. New windows, painted walls, total demolition inside from what we could see of the dumpster. I was sure that had been a condo and now there's nobody in it. I wonder if it's a similar situation.
 
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