GTA Construction News staff writer
High Art Capital has announced the launch of a new $1.3-billion investment initiative aimed at converting unsold condominium units into long-term rental housing across the Greater Toronto Area (GTA), in a move expected to deliver roughly 2,200 units in the near term.
A submission portal is now open, with additional details available through High Art Capital.
The GTA Rental and Affordable Housing Initiative will focus on acquiring blocks of newly completed, unsold condo units and transitioning them into purpose-built rental supply. Approximately 550 of the units will be designated as affordable housing, with rents set at the lower of 25 per cent below market rates or 30 per cent of median gross household income across the region.
According to the firm, the affordable units will be protected in perpetuity through title-based mechanisms and related agreements. The housing is intended to serve middle-income workers who are priced out of market rents but do not qualify for traditional subsidized housing programs. A not-for-profit organization will be engaged to oversee eligibility and allocation of those units.
The initiative is anchored by up to $300 million in mezzanine debt financing and a nominal equity investment from the Building Ontario Fund (BOF), with the financing closing on Feb. 13, 2026.
“Timing matters in this market. There is a rare opportunity right now to convert newly completed but unsold housing into long-term rental supply at scale,” said Ryan Roebuck of High Art Capital. “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.”
Michael Fedchyshyn, CEO of the Building Ontario Fund, said the partnership highlights how public-private collaboration can address housing supply challenges.
“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,” he said. “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.”
High Art Capital said it will run an open, competitive process to acquire eligible units. Submissions must include blocks of at least 10 vacant units in registered residential or mixed-use condominium buildings completed on or after Jan. 1, 2023, and located in Toronto or the regional municipalities of Durham, Halton, Peel or York.
The company has reached agreements in principle with Del Condominium Rentals Inc., part of the Tridel Group of Companies, and Menkes Condominium Rentals to manage leasing and tenancies. Both firms will also work with a not-for-profit partner to support eligibility screening and allocation of affordable units.
