Today, High Art Capital and the Building Ontario Fund revealed that they had partnered to introduce the GTA Rental and Budget Friendly Housing Effort, a fund that will “acquire blocks of newly finished, unsold condominium systems throughout the Greater Toronto Area and transform them into long-lasting rental real estate.”
The partners stated the fund is anticipated to be capitalized with a minimum of $1.3 billion, anchored by as much as $300 million in mezzanine debt funding and a nominal equity investment from Structure Ontario Fund (BOF)– the arms-length board-governed Crown firm established by the Government of Ontario in 2024.
High Art Capital, a Toronto-based personal investment that says it likes to “release disciplined capital where structural chances satisfy functional know-how” and “where objective basics satisfy subjective insight,” said the dedication from BOF closed on February 13.
The GTA Rental and Cost Effective Real Estate Effort has a target of 2,200 units, in the near-term, that it wants to transform into rental units, consisting of around 550 economical rentals that will be offered at the lower of 25% below-market rent or 30% of average gross home income across the GTA. The tenure would be protected in perpetuity through agreements and titled-based protections.The partners state that the inexpensive units”are planned for the GTA’s labor force, who may be priced out of market leas, yet do not receive rent-geared-to-income or other subsidized programs.”The effort will be led by Classicism Capital, which has now introduced a submission portal for designers/ suppliers. Eligible submissions should fulfill the following requirements: Residential condo units (including stacked towns )in registered domestic or mixed-use condominium buildings; Blocks of a minimum of 10 uninhabited systems in the exact same building; New develops just(completed on or after January 1, 2023); and Located within: City of Toronto, Durham, Halton, Peel
the leasing and occupancies. A not-for-profit organization will then be engaged to designate the economical units to qualified candidates, with support from Tridel and Menkes.”Timing matters in this market,”stated High Art Capital Managing Partner Ryan Roebuck in a press release.”There is a rare opportunity today to transform freshly completed but unsold housing into long-lasting rental supply at scale. This initiative is developed to develop real housing availability in the near term, protect a meaningful inexpensive element and help stabilize a crucial section of the GTA real estate market, all of which has actually become possible through our partners at BOF.”” This collaboration shows the power of partnership in between the public and economic sectors to resolve real estate difficulties, “added Structure Ontario Fund CEO Michael Fedchyshyn.”
By interacting with High Art Capital and our provider, we’re developing rental housing alternatives in the near-term, and securing budget-friendly homes for generations to come. This job was made possible by BOF’s participation, needing no development charge, tax waivers, or direct aids to realize its cost goals. This kind of ingenious technique, a very first of its kind at this scale, is exactly why BOF was produced.”According to a report published by realty assessment company Urbanation Inc. earlier this year, the Greater Toronto and Hamilton Area was resting on 3,897 finished and unsold apartment units at the end of 2025– a 131% year-over-year boost and
5 times greater than levels seen in 2023. Urbanation likewise kept in mind that roughly 10 %of pre-sold condominiums that were registered in 2025 were reclaimed by developers after buyers stopped working to close on the purchase, representing approximately 3,000 systems.