Windsor Ont - New Landlords Like Where Region Is Headed

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The Skyline Apartment Real Estate Investment Trust is investing heavily in Windsor and Tecumseh.

The Guelph-based company just purchased 23 properties for $136.2-million, to become one of the more dominant landlords in the area.

Skyline CEO Jason Castellan believes it’s a good time to invest in the region. “With the biggest trading partner being the US right on the border there, and their economy picking up, we see great opportunity,” he explains. “Windsor has a skilled work force, they have a new bridge, they have a lot of strength going and a lot of momentum in their direction.”

The Skyline Apartment REIT owns 15,000 units in 48 communities across six Canadian provinces.

Thanks for the update. I am not surprised considering the price of Windsor relative to the rest of Ontario. Great move, but hopefully this doesn't drive cap rates down in the city. 

We went though a round of that 5-6 years ago when Killiam properties was buying {& overpaying for} almost everything 40+-units in the area and a few things smaller.  The fall out has been, several neighbouring owners have it in their head that their properties are worth 90-100K/unit when the underlaying business supports 60 - 70K.

It's made it tough on the smaller independent investor ... unless you want to pay too much. ;-)

We own one 4-plex we bought about 4 years ago and I would have bought more if I could. The best deals were back in 2008-2009, particularly in the larger multi-family range. There are still deals to be had but you have to look much more closely. But, the risk is lower since vacancy rates have also dropped.

I personally have some concerns that the auto industry will continue to decline and diversification won't happen fast enough, so it might be a bumpy ride ahead but I'm still positive about the city. It's always bounced back when people write it off, and it will continue to do so I believe.  I'd certainly like to hear from others on this.

Finally, for supply, there are a lot of properties for sale in areas I would not personally touch (e.g. much of the downtown) and not as much in other areas. If you check out the Windsor crime map you will get a feel for trouble spots and I monitor it sometimes.

Windsor can be a goldmine for cash flowing properties....Properties can be had for $50k + 15k renos and start flowing $1600 mth (duplex)

The biggest issue I see is....

1) properties are worn out old and dated so if you do not have capital you can only rent them to tenants willing to accept that type of living condition  ....(Bad) 

2) You need capital !!!!! you need capital to modernize and bring the properties upto todays standard...

Then charge a premium rent and cater to the tenant willing to pay $800/mth for a 1 bedroom 

3) By improving the property, and getting a $800 mth tenant you are also making your tenant headaches much smaller, your operation will run much smoother .......True Story.....:)

Congrats on the Windsor purchases and smooth implementation! To continued success.

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