July 11, 2025 • 10 mins
In this episode, Sandy MacKay begins with an introduction before diving into Ottawa's Kanata North conversion project, emphasizing its sustainability focus. The discussion then shifts to Houston, where there's an apartment construction boom, exploring the market's outlook and potential for growth. Sandy highlights the sale and distinctive features of Level at Sixteenth in Phoenix, Arizona, providing insights into the property's appeal. The episode concludes with an examination of strategies employed by Marcus & Millichap and Institutional Property Advisors, offering listeners a comprehensive view of current trends and strategic approaches in the multifamily real estate market.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Have you ever wondered how a 10-storey officetower could transform into a thriving
residential community right in the heart ofCanada's largest tech park?
Welcome to the Multifamily Real Estate InsightsPodcast.
I'm your host, Sandy MacKay.
Let's get right to it.
(00:20):
In a fascinating development in Ottawa's KanataNorth business park, KRP Properties has
embarked on a noteworthy project to convert aformer office tower into a residential
apartment building.
According to RENX, this 10-storey structure,located at 535 Legget Drive, is being
reimagined into 115 high-end apartments,complete with four multi-level penthouse
(00:45):
suites.
This initiative is particularly intriguing asit sits in the midst of Canada's largest tech
research and development hub, which hosts over200 tenants and employs approximately 12,000
people.
The decision to convert the building,originally constructed around the year 2000,
was a response to the office sector slowdown,as stated by KRP president Terry Young.
(01:09):
The building's existing glass-metal curtainwall construction made it a perfect candidate
for this transformation.
With the help of trusted partners likeMontreal's NEUF architects and Ottawa's RECL
Contracting, KRP is poised to offer a uniqueliving experience by integrating cutting-edge
technology and leveraging its proximity to thefour-diamond Brookstreet Hotel for high-end
(01:31):
amenities.
Young highlighted the strategic advantage ofthis conversion, emphasizing the incorporation
of technology to attract tech-savvy residents.
The apartments will be linked to the hotel'sservice-on-demand platform, offering residents
conveniences such as on-demand meals, laundryservices, and apartment cleaning.
(01:52):
This service integration is expected to giveKRP a competitive edge in the market.
Sustainability is also a key focus for KRP,although the building won't pursue formal
environmental certifications.
The project aims to achieve the equivalent ofLEED gold or platinum standards by reusing and
repurposing building materials whereverpossible.
(02:15):
Impressively, 75 to 80 percent of materialsremoved during demolition will be diverted from
landfills, including recycling glass asasphalt.
The building will feature a state-of-the-artvariable refrigerant flow HVAC system,
enhancing energy efficiency and temperaturecontrol.
Looking ahead, KRP's project is part of abroader vision to cultivate a vibrant
(02:40):
residential community in Kanata North.
The development aligns with plans from othermajor players like Main + Main and Nokia, who
are also contributing to the area's growth withnew housing units and mixed-use projects.
Young envisions a "Main Street" evolution inthe coming years, with more restaurants, bars,
and retail spaces sprouting up to create alively urban environment.
(03:04):
Houston is experiencing a significant surge inapartment construction, with over 5,000
multifamily units proposed or underway inneighborhoods like Montrose, River Oaks, and
the Heights.
This development is part of a larger citywideeffort to meet the rising demand driven by
population and job growth.
According to Yardi Matrix, Houston has over29,000 multifamily housing units under
(03:27):
construction as of January, with an additional62,000 units in the planning stages.
Within the Heights, River Oaks, and Montrosesubmarkets alone, over 5,000 units are under
construction or proposed for 2025, as detailedin March submarket reports from MRI
ApartmentData.
(03:48):
The MRI reports indicate that 1,037 units havealready opened in early 2025 across three
different apartment complexes—Fairfield SawyerHeights, Fairfield Waugh, and Hanover Buffalo
Bayou.
Furthermore, 3,132 units are proposed for theHeights, Washington Avenue, and Montrose
(04:10):
submarkets, comprising 10 additionalmultifamily complexes in the coming years.
Additionally, 931 units are proposed withinLoop 610, specifically in Highland Village and
Upper Kirby.
The largest development will be phases II andIII of Hanover in Autry Park, which will
include 700 units.
(04:32):
LaTisha Grant, a real estate professional withthe Houston Association of Realtors, attributes
the growing demand for multifamily housing tothe city's recent population and job growth.
Houston is projected to add 408,000 residentsby 2029, according to a 2025 Houston
multifamily market report by Newmark.
(04:52):
Additionally, the city recorded a monthly jobgain of 15,200 in February, marking the highest
nonfarm payroll figure in Houston's historybefore September 2024.
Chris Yuko, managing director of development atMarquette Companies, notes that Houston's
ability to generate jobs attracts people to thecity.
(05:13):
Yuko highlights the importance of understandingHoustonians' living preferences, such as their
commuting habits and proximity to entertainmentand dining options.
He emphasizes that neighborhoods close todowntown, like the Heights, are particularly
attractive due to their accessibility tooffices, entertainment, and restaurants.
(05:34):
Despite the population growth, the cost of rentin Houston has also increased.
A 2025 housing study by the Kinder Institutefor Urban Research noted a 9 percent rise in
rent from 2022 to 2023, widening theaffordability gap.
However, Scott Evans, director of businessdevelopment at Hoar Construction, points out
(05:55):
that living in Houston remains relativelyaffordable compared to other major cities.
For instance, the average rent for aone-bedroom apartment in Houston is $1,362,
significantly lower than cities like LosAngeles and New York City.
Looking ahead, Evans anticipates themultifamily housing market will stabilize with
(06:16):
the numerous apartment projects planned orunder construction.
The market is expected to thrive as newergenerations, including millennials and Gen Z,
continue to grow older and seek these types ofliving environments.
However, Chris Yuko cautions that there may bea slowdown in new apartment projects due to
concerns over tariffs and foreign affairs,which could make investors apprehensive.
(06:41):
In a notable transaction that underscores thestrength of the multifamily sector,
Institutional Property Advisors, a division ofMarcus & Millichap, announced the sale of Level
at Sixteenth, a 240-unit midrise multifamilyasset located in the Biltmore neighborhood of
Phoenix, Arizona.
The property fetched a remarkable $61.5million, equating to $256,250 per unit, as
(07:08):
reported by Yield PRO.
This sale highlights the ongoing demand forhigh-quality multifamily assets in prime
locations, especially within affluentneighborhoods like Biltmore.
The Level at Sixteenth is strategicallypositioned within the Valley's premier
financial district, the Camelback Corridor.
(07:28):
According to Steve Gebing, IPA executivemanaging director, this area has seen limited
new multifamily development over the past 25years, with only five multifamily assets of 100
or more units being constructed.
This scarcity adds to the property's appeal,ensuring a competitive edge in the market.
The previous ownership, Sares Regis MultifamilyInvestment Management, maintained the
(07:53):
property's allure through extensive capitalimprovements, enhancing apartment interiors,
the clubhouse, leasing office, and fitnesscenter.
The property boasts a prime location on thecorner of 16th Street and Campbell Avenue,
providing easy access to major thoroughfareslike Camelback Road and Arizona State Route 51.
(08:13):
It is also conveniently close to populardestinations such as The Arizona Biltmore, The
Phoenician, The Shops at Town & Country, andScottsdale Fashion Square.
Completed in 2010, Level at Sixteenth spansfour acres and features temperature-controlled
interior corridors, a resort-inspired swimmingpool and spa, a two-story fitness center, and a
(08:34):
parking garage.
Apartments are equipped with stainless-steelappliance packages and oversized walk-in
closets, with an average unit size of 794square feet.
Marcus & Millichap, the parent company ofInstitutional Property Advisors, is a leading
national brokerage firm specializing incommercial real estate investment sales,
(08:54):
financing, research, and advisory services.
As of December 31, 2023, the firm employed1,783 investment sales and financing
professionals across over 80 offices,facilitating investment brokerage and financing
services for commercial real estate sellers andbuyers.
In 2023 alone, Marcus & Millichap closed 7,546transactions, achieving a sales volume of
(09:20):
approximately $43.6 billion.
This robust performance underscores the firm'sexpertise in navigating the complexities of the
real estate market and delivering value to itsclients.
Institutional Property Advisors, a prominentplayer in commercial real estate services
across North America, leverages its real estateinvestment and capital markets expertise,
(09:44):
industry-leading technology, and acclaimedresearch to provide tailored solutions for the
acquisition, disposition, and financing ofinstitutional properties and portfolios.
This strategic approach ensures that clientsreceive comprehensive and effective support
throughout their real estate transactions.
(10:04):
Thank you for listening to the Multifamily RealEstate Insights Podcast.
I'm your host, Sandy MacKay.
See you on the next one.
Have you ever wondered how a 10-storey officetower could transform into a thriving
residential community right in the heart ofCanada's largest tech park?
Welcome to the Multifamily Real Estate InsightsPodcast.
I'm your host, Sandy MacKay.
Let's get right to it.
(00:20):
In a fascinating development in Ottawa's KanataNorth business park, KRP Properties has
embarked on a noteworthy project to convert aformer office tower into a residential
apartment building.
According to RENX, this 10-storey structure,located at 535 Legget Drive, is being
reimagined into 115 high-end apartments,complete with four multi-level penthouse
(00:45):
suites.
This initiative is particularly intriguing asit sits in the midst of Canada's largest tech
research and development hub, which hosts over200 tenants and employs approximately 12,000
people.
The decision to convert the building,originally constructed around the year 2000,
was a response to the office sector slowdown,as stated by KRP president Terry Young.
(01:09):
The building's existing glass-metal curtainwall construction made it a perfect candidate
for this transformation.
With the help of trusted partners likeMontreal's NEUF architects and Ottawa's RECL
Contracting, KRP is poised to offer a uniqueliving experience by integrating cutting-edge
technology and leveraging its proximity to thefour-diamond Brookstreet Hotel for high-end
(01:31):
amenities.
Young highlighted the strategic advantage ofthis conversion, emphasizing the incorporation
of technology to attract tech-savvy residents.
The apartments will be linked to the hotel'sservice-on-demand platform, offering residents
conveniences such as on-demand meals, laundryservices, and apartment cleaning.
(01:52):
This service integration is expected to giveKRP a competitive edge in the market.
Sustainability is also a key focus for KRP,although the building won't pursue formal
environmental certifications.
The project aims to achieve the equivalent ofLEED gold or platinum standards by reusing and
repurposing building materials whereverpossible.
(02:15):
Impressively, 75 to 80 percent of materialsremoved during demolition will be diverted from
landfills, including recycling glass asasphalt.
The building will feature a state-of-the-artvariable refrigerant flow HVAC system,
enhancing energy efficiency and temperaturecontrol.
Looking ahead, KRP's project is part of abroader vision to cultivate a vibrant
(02:40):
residential community in Kanata North.
The development aligns with plans from othermajor players like Main + Main and Nokia, who
are also contributing to the area's growth withnew housing units and mixed-use projects.
Young envisions a "Main Street" evolution inthe coming years, with more restaurants, bars,
and retail spaces sprouting up to create alively urban environment.
(03:04):
Houston is experiencing a significant surge inapartment construction, with over 5,000
multifamily units proposed or underway inneighborhoods like Montrose, River Oaks, and
the Heights.
This development is part of a larger citywideeffort to meet the rising demand driven by
population and job growth.
According to Yardi Matrix, Houston has over29,000 multifamily housing units under
(03:27):
construction as of January, with an additional62,000 units in the planning stages.
Within the Heights, River Oaks, and Montrosesubmarkets alone, over 5,000 units are under
construction or proposed for 2025, as detailedin March submarket reports from MRI
ApartmentData.
(03:48):
The MRI reports indicate that 1,037 units havealready opened in early 2025 across three
different apartment complexes—Fairfield SawyerHeights, Fairfield Waugh, and Hanover Buffalo
Bayou.
Furthermore, 3,132 units are proposed for theHeights, Washington Avenue, and Montrose
(04:10):
submarkets, comprising 10 additionalmultifamily complexes in the coming years.
Additionally, 931 units are proposed withinLoop 610, specifically in Highland Village and
Upper Kirby.
The largest development will be phases II andIII of Hanover in Autry Park, which will
include 700 units.
(04:32):
LaTisha Grant, a real estate professional withthe Houston Association of Realtors, attributes
the growing demand for multifamily housing tothe city's recent population and job growth.
Houston is projected to add 408,000 residentsby 2029, according to a 2025 Houston
multifamily market report by Newmark.
(04:52):
Additionally, the city recorded a monthly jobgain of 15,200 in February, marking the highest
nonfarm payroll figure in Houston's historybefore September 2024.
Chris Yuko, managing director of development atMarquette Companies, notes that Houston's
ability to generate jobs attracts people to thecity.
(05:13):
Yuko highlights the importance of understandingHoustonians' living preferences, such as their
commuting habits and proximity to entertainmentand dining options.
He emphasizes that neighborhoods close todowntown, like the Heights, are particularly
attractive due to their accessibility tooffices, entertainment, and restaurants.
(05:34):
Despite the population growth, the cost of rentin Houston has also increased.
A 2025 housing study by the Kinder Institutefor Urban Research noted a 9 percent rise in
rent from 2022 to 2023, widening theaffordability gap.
However, Scott Evans, director of businessdevelopment at Hoar Construction, points out
(05:55):
that living in Houston remains relativelyaffordable compared to other major cities.
For instance, the average rent for aone-bedroom apartment in Houston is $1,362,
significantly lower than cities like LosAngeles and New York City.
Looking ahead, Evans anticipates themultifamily housing market will stabilize with
(06:16):
the numerous apartment projects planned orunder construction.
The market is expected to thrive as newergenerations, including millennials and Gen Z,
continue to grow older and seek these types ofliving environments.
However, Chris Yuko cautions that there may bea slowdown in new apartment projects due to
concerns over tariffs and foreign affairs,which could make investors apprehensive.
(06:41):
In a notable transaction that underscores thestrength of the multifamily sector,
Institutional Property Advisors, a division ofMarcus & Millichap, announced the sale of Level
at Sixteenth, a 240-unit midrise multifamilyasset located in the Biltmore neighborhood of
Phoenix, Arizona.
The property fetched a remarkable $61.5million, equating to $256,250 per unit, as
(07:08):
reported by Yield PRO.
This sale highlights the ongoing demand forhigh-quality multifamily assets in prime
locations, especially within affluentneighborhoods like Biltmore.
The Level at Sixteenth is strategicallypositioned within the Valley's premier
financial district, the Camelback Corridor.
(07:28):
According to Steve Gebing, IPA executivemanaging director, this area has seen limited
new multifamily development over the past 25years, with only five multifamily assets of 100
or more units being constructed.
This scarcity adds to the property's appeal,ensuring a competitive edge in the market.
The previous ownership, Sares Regis MultifamilyInvestment Management, maintained the
(07:53):
property's allure through extensive capitalimprovements, enhancing apartment interiors,
the clubhouse, leasing office, and fitnesscenter.
The property boasts a prime location on thecorner of 16th Street and Campbell Avenue,
providing easy access to major thoroughfareslike Camelback Road and Arizona State Route 51.
(08:13):
It is also conveniently close to populardestinations such as The Arizona Biltmore, The
Phoenician, The Shops at Town & Country, andScottsdale Fashion Square.
Completed in 2010, Level at Sixteenth spansfour acres and features temperature-controlled
interior corridors, a resort-inspired swimmingpool and spa, a two-story fitness center, and a
(08:34):
parking garage.
Apartments are equipped with stainless-steelappliance packages and oversized walk-in
closets, with an average unit size of 794square feet.
Marcus & Millichap, the parent company ofInstitutional Property Advisors, is a leading
national brokerage firm specializing incommercial real estate investment sales,
(08:54):
financing, research, and advisory services.
As of December 31, 2023, the firm employed1,783 investment sales and financing
professionals across over 80 offices,facilitating investment brokerage and financing
services for commercial real estate sellers andbuyers.
In 2023 alone, Marcus & Millichap closed 7,546transactions, achieving a sales volume of
(09:20):
approximately $43.6 billion.
This robust performance underscores the firm'sexpertise in navigating the complexities of the
real estate market and delivering value to itsclients.
Institutional Property Advisors, a prominentplayer in commercial real estate services
across North America, leverages its real estateinvestment and capital markets expertise,
(09:44):
industry-leading technology, and acclaimedresearch to provide tailored solutions for the
acquisition, disposition, and financing ofinstitutional properties and portfolios.
This strategic approach ensures that clientsreceive comprehensive and effective support
throughout their real estate transactions.
(10:04):
Thank you for listening to the Multifamily RealEstate Insights Podcast.
I'm your host, Sandy MacKay.
See you on the next one.
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