Fengate Asset Management and Address Acquire Leslieville Site for 250-Plus Toronto Rental Homes

TORONTO — Fengate Asset Management ("Fengate") and Capital Developments, through its purpose-built rental platform Address, announced the acquisition of a mid-rise development site at 880 Eastern Avenue and 80 Knox Avenue in Toronto's Leslieville neighbourhood. Fengate is managing the investment on behalf of the LiUNA Pension Fund of Central and Eastern Canada ("LiUNA").

The partners plan to build more than 250 purpose-built rental homes on the site, including affordable rental units. Construction is expected to begin in late 2027, and the project will target LEED certification.

Fengate Asset Management and Address Form New Joint Venture

The acquisition marks a new joint venture between Fengate and Address, which will serve as co-development managers. Fengate's role includes managing the investment for the LiUNA Pension Fund of Central and Eastern Canada, the capital partner on the deal.

The transaction expands Fengate's purpose-built rental portfolio into Toronto's east end, where supply remains limited.

"Toronto's population continues to grow, and the supply of high-quality rental housing has not kept pace," said Jaime McKenna, President, Fengate Real Estate. "We are thrilled to be partnering with Address, a team that shares our commitment to delivering more housing for our city. Together, we are unlocking new rental supply in Leslieville and creating a connected community where people can live and work, with convenient access to transit, the waterfront and everyday amenities."

Jordan Dermer, Co-Founder, CEO of Capital Developments, said: "We're proud to launch this new partnership with Fengate and LiUNA. Fengate's institutional strength, combined with the residential development experience we've built at Capital Developments, gives us a strong foundation to deliver purpose-built rental at scale. 880 Eastern is an exceptional first project together, and a chance to add high-quality rental homes to one of Toronto's most loved neighbourhoods."

LiUNA Pension Fund Investment in East-End Rental Housing

Joseph Mancinelli, Chair of LPFCEC, LiUNA International Vice President and Canadian Director, said the investment aligns with the fund's objectives. "LiUNA is committed to investments that create long-term value for our members and strengthen the communities where we work, live and build," Mancinelli said. "880 Eastern will add purpose-built rental homes in Toronto's east end and reflects LiUNA's leadership in supporting stronger, more connected and vibrant communities."

Transit Access Near Leslieville and East Harbour

The site has access to existing streetcar and bus routes. The future Ontario Line Leslieville and East Harbour stations are expected to further improve connectivity to downtown Toronto and across the city. The Ontario Line is currently scheduled for completion in 2031, and excavation at the Riverside-Leslieville and Gerrard-Carlaw station sites was expected to begin in spring 2026. A late-2027 construction start for the project would precede the line's opening, leaving the development exposed to construction disruption and timing risk in the interim.

The site's proximity to downtown, transit, Queen Street East, the waterfront, Woodbine Beach and neighbourhood amenities is expected to support demand among young professionals and downsizers seeking rental housing in an established east-end community.

Toronto Rental Market Context

The deal comes as Toronto's rental market has loosened from the tightest post-pandemic conditions. The Toronto census metropolitan area's purpose-built rental vacancy rate reached 3.0% in 2025, up from 2.5% in 2024, according to CMHC data. Urbanation data put the Greater Toronto and Hamilton Area's vacancy rate at 5.4% in the first quarter of 2026, roughly twice its level two years earlier. Landlords have responded with lower rents and incentives, including offers of up to two months of free rent.

CMHC forecasts Toronto purpose-built rental vacancy to rise to 3.5% in 2026 before easing to 3.4% in 2027, as new supply arrives and population growth moderates. Urbanation data also indicate that purpose-built units built after 2000 in the GTHA rent for approximately $350 per month more on average than comparable broader-market rental stock.

Outlook for the 880 Eastern Project

The project adds a development pipeline asset to Fengate's purpose-built rental platform and gives LiUNA exposure to Toronto's east-end rental market. The project's economics will depend on securing approvals and construction pricing before work begins in late 2027. For Capital Developments, 880 Eastern is the first project undertaken with Fengate and LiUNA through the Address platform.

Sources

• Fengate, on behalf of LiUNA, and Address acquire Leslieville site for new purpose-built rental community