investor - Appartement de Ville

02/05/2024

Rental housing investor Starlight hit by rising real estate supply in U.S., compounding pain from higher rates

One of Canada’s largest owners of apartment buildings and multifamily properties is struggling to turn around two funds that bet on U.S. rental housing, with higher rates and an oversupply of new units eating into profits.

Starlight Investments, run by Canadian real estate magnate Daniel Drimmer, launched two funds that invested in U.S. rental properties during the COVID-19 pandemic with hopes that rising rents and low interest rates would keep sending property values soaring.

By November, 2022, however, the two publicly traded funds, known as the Starlight U.S. Residential Fund and the Starlight U.S. Multi-Family (No. 2) Core Plus Fund, faced some significant headwinds, and both halted their distributions because higher interest rates had sent their mortgage costs soaring.

The pain has only worsened since, and this week both funds reported negative funds from operations in 2023, which is a measure of profit for real estate investment funds. Not only

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24/03/2024

Investor dominance in Ontario real estate and the Home of the Week: Canadian real estate news for March 23

Home of the Week, 79 Amelia St., HamiltonMichael Goencz Photography

Here are The Globe and Mail’s top housing and real estate stories this week and one home worth a look.

Try The Globe’s business and investing news quiz

Banks to face new limits on mortgage loans above 4.5 times a homebuyer’s annual income

The Office of the Superintendent of Financial Institutions is capping the number of highly leveraged loans in the banks’ residential mortgage portfolios, instructing lenders they will have to limit the number of mortgages that exceed 4.5 times the borrower’s annual income, write James Bradshaw, Rachelle Younglai and Stefanie Marotta. The new income limit, which is expected to take effect in the first quarter of next year, comes on top of existing mortgage qualification rules. In markets like Toronto and Vancouver, prospective homebuyers often have to borrow more than 4.5 times their

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08/03/202408/03/2024

Ottawa real estate investor found guilty on 27 counts of fraud

A judge ruled that James Edward “Jim” Pellerin made false representations to his lenders about the security interest of their loans, then paid himself about $150,000 in salary — plus other personal fees and expenses — with funds withdrawn from their investments.

Published Mar 01, 2024 • Last updated 6 days ago • 4 minute read

A social media photo of James Edward “Jim” Pellerin. The fraud case against him involved 17 different lenders of $30,000 each on a failed house-flipping scheme in Carleton Place. Photo by @jim_pellerin/Instagram

A prominent Ottawa real estate investor who has authored multiple books on the subject has been found guilty of defrauding 17 different lenders of $30,000 each on a failed house-flipping scheme in Carleton Place.

James Edward “Jim” Pellerin was found guilty on 27 counts of fraud by Superior Court Justice Robert J. Smith after

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20/12/2023

Real estate investor warns US is entering the ‘greatest’ correction of his lifetime

One real estate investor is bearing witness to the start of the industry’s “greatest” correction he’s ever seen.

“I just want to say that we’re entering the greatest real estate correction in my lifetime,” private equity fund manager Grant Cardone told “FOX & Friends” on Thursday while discussing the state of the industry.

“It’s [real estate correction] going to be a great opportunity for individuals, regular, everyday people to actually grab trophy real estate from institutions. This has never happened in the country,” Cardone said.

“It’s going to be at epic levels,” he expressed.

MILLENNIALS FEEL THEY MISSED ‘GOLDEN OPPORTUNITY’ TO BUY A HOME

Despite Cardone’s claim that the industry is entering new territory, the current housing market poses significant issues for any buyer or seller as interest rates and housing costs remain heightened. With sellers staying out of the market, low inventory exacerbates the problem, and results in rising

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21/06/2023

Private real estate investor Hazelview sees surge in requests to cash out of $1.2-billion Four Quadrant fund

Toronto’s Financial District on Dec 2, 2022.Fred Lum/the Globe and Mail

Hazelview Investments, a private money manager that specializes in commercial real estate, is experiencing a surge of investor requests to cash out of its Four Quadrant fund – a common problem for private investment managers as interest rates rise.

In a memo to clients obtained by The Globe and Mail, Toronto-based Hazelview said investors have requested $188-million in redemptions this quarter, amounting to 16 per cent of the fund’s $1.2-billion in assets under management. Hazelview currently limits redemptions to roughly 5 per cent of the fund each quarter, which means a number of investors will get only some of their money out, and will have to try again for the rest next quarter.

The Four Quadrant fund, which Hazelview has managed for 12 years, offers investors exposure to a mix of private and

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Banks to face new limits on mortgage loans above 4.5 times a homebuyer’s annual income

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