Can you sell units separately, once a 4plex (or multiplex) is built?

"If I work with PolyPrime to build a multiplex, can I sell the units one by one?" ----this is often one of the first question a smart landlord friends would ask me, once I explain to him/her how PolyPrime Multiplex partnership development model works.

"Did you hear that earlier this year in Vancouver, some new built multiplex are selling units at $1.6~2.3M/unit? For those units, they are also about 1900 sqft each." So, I would cite the anecdote from west coast, where it is ahead of Toronto just a little bit.

"But, that is Vancouver!" my friends would say. Indeed, it is true, that even these two largest cities in Canada, they are different enough for their land supply, zoning control and also demographic structure and so on.

Now, with 319 Mortimer Ave., a 4plex (Garden suite included) now (April 6th, 2024) being listed on market, at a total price of $4.4M with 4 units combine, I believe would find it easier to believe in our pitch.

I would encourage you to go check this nice interesting property yourself, if you can. However, here is what I saw/understood:

• Location: It is within Greek town, with great accessibility to line 2 subway, nice rental potentials

• Square footage: The major caveat of the lot being chosen, was the frontage being only 31ft, which prevented the developer from making bigger/better units----Currently, units are relatively small/moderate size (comparing to PolyPrime's definition), ranging from 500-1500 sqft each

• Price competitiveness: Listed at $1000/sqft, it's cheaper than the condo price in that community. However, another benefit is that, the condo fees are 50% cheaper per sqft wise

• Design consideration: Developer did adopt ensuite bathroom concept (same as PolyPrime); Also separate HVAC.

• Garden suite: Priced at $1,299,900, I would consider it as the nicest one among all units for better privacy.
  

You can also reach The Star article for further details: https://www.thestar.com/real-estate/this-toronto-multiplex-has-four-units-including-a-garden-suite-theyre-all-for-sale-separately/article_d6a87fde-ed3f-11ee-a21c-6f3ddb7f18c6.html

Digging a bit deeper, you'll see current owner/developer bought it  (in year 2020) before 4plex is legalized, and had to spend probably 2-3 years to do rezoning. Now, with the new 4plex policy, he would have saved 2 years for sure, since no rezoning is required, therefore no risk associate with that.

It is also important to point out, that PolyPrime consider the lot size limitation was the major limitation to develop Multiplex opportunities. In general, we do not consider lots with frontage smaller than 35 feet.

In summary, even with all constrains, this Greektown 4plex, is one of the most recently built 4plex that would be closely monitored by the industry. By listing on sale on the market, it help test water for those of us, who are invested heavily in Multiplex/4plex topic!