New $1.3B Fund To Buy Unsold GTA Condos, Convert To Rental

This week, High Art Capital and the Building Ontario Fund announced that they had partnered to launch the GTA Rental and Affordable Housing Initiative, a fund that will “acquire blocks of newly completed, unsold condominium units across the Greater Toronto Area and convert them into long-term rental housing.”

The partners said the fund is expected to be capitalized with a minimum of $1.3 billion, anchored by up to $300 million in mezzanine debt financing and a nominal equity investment from Building Ontario Fund (BOF) — the arms-length board-governed Crown agency established by the Government of Ontario in 2024.

High Art Capital, a Toronto-based private investment that says it likes to “deploy disciplined capital where structural opportunities meet operational expertise” and “where objective fundamentals meet subjective insight,” said the commitment from BOF closed on February 13.

The GTA Rental and Affordable Housing Initiative has a target of 2,200 units, in the near-term, that it hopes to convert into rental units, including around 550 affordable rental units that will be provided at the lower of 25% below-market rent or 30% of median gross household income across the GTA. The tenure would be secured in perpetuity through agreements and titled-based protections.

The partners say that the affordable units “are intended for the GTA’s workforce, who may be priced out of market rents, yet do not qualify for rent-geared-to-income or other subsidized programs.”

The initiative will be led by High Art Capital, which has now launched a submission portal for developers / vendors. Eligible submissions must meet the following criteria:

Residential condominium units (including stacked towns) in registered residential or mixed-use condominium buildings;
Blocks of at least 10 vacant units in the same building;
New builds only (completed on or after January 1, 2023); and
Located within: City of Toronto, Durham, Halton, Peel, or York (Ontario, Canada).

High Art Capital says it has reached an agreement with prominent Toronto-based developers Tridel and Menkes to manage the leasing and tenancies. A not-for-profit organization will then be engaged to allocate the affordable units to eligible applicants, with support from Tridel and Menkes.

“Timing matters in this market,” said High Art Capital Managing Partner Ryan Roebuck in a press release. “There is a rare opportunity right now to convert newly completed but unsold housing into long-term rental supply at scale. This initiative is designed to create real housing availability in the near term, preserve a meaningful affordable component and help stabilize a critical segment of the GTA housing market, all of which has become possible through our partners at BOF.”

“This partnership demonstrates the power of collaboration between the public and private sectors to address housing challenges,” added Building Ontario Fund CEO Michael Fedchyshyn. “By working together with High Art Capital and our service providers, we're creating rental housing options in the near-term, and securing affordable homes for generations to come. This project was made possible by BOF's participation, requiring no development charge, tax waivers, or direct subsidies to realize its affordability objectives. This type of innovative approach, a first of its kind at this scale, is exactly why BOF was created.”

According to a report published by real estate consultation firm Urbanation Inc. earlier this year, the Greater Toronto and Hamilton Area was sitting on 3,897 completed and unsold condo units at the end of 2025 — a 131% year-over-year increase and five times higher than levels seen in 2023.

Urbanation also noted that approximately 10% of pre-sold condos that were registered in 2025 were taken back by developers after purchasers failed to close on the purchase, representing approximately 3,000 units.

Renting

New $1.3B Fund Launched To Buy Unsold GTA Condos, Convert To Rental

​The "GTA Rental and Affordable Housing Initiative" is a partnership between High Art Capital and the Building Ontario Fund.

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The "GTA Rental and Affordable Housing Initiative" is a partnership between High Art Capital and the Building Ontario Fund.

The sale of 34-70 Montgomery Avenue was completed last year, and Graywood has since submitted a new application for the site.

"This is not about architectural indulgence. It is about aligning policy incentives with outcomes the city already claims to want: stable communities with affordable quality housing that supports residents through multiple life stages."

The proposal would see Onni Group redevelop the Regency Gardens apartment complex near Whalley Athletic Park into five mid-rise buildings and seven high-rise buildings.

LJM Developments completed the LJM Tower at 2782 Barton St E last year, but many buyers did not close on their presales. LJM has also defaulted on several other loans.