"If you want people to stay, you fix what they touch." That's how Carl Dumont, president and CEO of Laval-based Groupe Dumont, summed up the plan for his company's first Toronto apartment purchase.[1] The quote is a good starting point for understanding a deal type that is becoming more common in Ontario: buying large, older towers where the value comes from running and repairing the buildings, not from turning over tenants.

The asset

Groupe Dumont bought The Oaks on the Green, a four-tower, 1,212-suite complex at 160–200 Chalkfarm Drive in North York, from Greenwin. The price wasn't disclosed. The towers, which range from 23 to 28 storeys, were built in 1972 and sit near Jane Street and Wilson Avenue. Greenwin will keep managing the property for five years.[1]

The operating figures Dumont shared with RENX describe a stable, mature building:[1]

  • Rents range from about $1,600 to $2,700.
  • Vacancy is under 2%.
  • Annual turnover is about 5% to 7%.

Why low turnover changes the math

In Ontario, most existing tenancies are subject to an annual guideline increase. For 2026 the guideline is 2.1%.[2] When a unit turns over, the landlord can generally reset the rent to market. In older buildings where in-place rents are well below market, turnover is therefore one of the main ways income grows.

At 5% to 7% turnover, that lever is small. On 1,212 suites, it implies roughly 60 to 85 units changing hands a year. The rest of the rent roll grows at or near the guideline. So the investment case has to rest mostly on other things:

  • Expense control. Dumont describes the plan as putting capital in, running the buildings more efficiently, and holding for a long time.[1]
  • Retention. If tenants stay longer because the buildings improve, vacancy and leasing costs stay low.
  • Land value. Dumont called the site "a piece of land in Toronto you simply cannot reassemble today," and said the price was well below replacement cost.[1]

The company says it has no plans to add another rental building on the site, so near-term returns don't depend on new density.[1]

Capex as the core of the plan

Dumont said the company looked first at what residents were saying about the buildings and what it would cost to fix them, before looking at rents. The plan calls for several million dollars of work over 12 to 24 months on elevators, common areas, lighting, heating, laundry, corridors and grounds, plus new outdoor amenities such as a lounge and barbecue area.[1]

That list is typical of 1970s concrete towers. Elevators, heating plants and building envelopes all reach the end of their life on similar timelines, and deferring them affects both tenant satisfaction and operating costs. The work also has a regulatory side. Under Ontario's rules, landlords can apply to the Landlord and Tenant Board for an above-guideline increase tied to eligible capital expenditures. Dumont didn't say whether the company plans to use that process, and it is a separate decision from the capital program itself.

Outsourced management, private capital

Two features of the deal set it apart from a typical institutional purchase.

First, the management arrangement. Groupe Dumont self-manages its other properties, and Dumont called the Greenwin partnership a first for the company.[1] Keeping the incumbent manager gives continuity for tenants and staff while the new owner learns the market.

Second, the capital structure. Groupe Dumont is wholly owned by Dumont, with about $1.3 billion in assets. Dumont said having no investment committee and no outside equity lets the company underwrite complex files and close quickly, and that higher vacancy in Toronto is creating openings for private buyers, particularly for older assets.[1] He also said the main constraint on growth isn't capital but how many buildings the company can run well at once.[1]

What the deal says about older stock

Ontario has a large inventory of 1960s and 1970s rental towers, and many will need major reinvestment in the next decade. This purchase points to a few things about how that stock may trade:

  1. Buyers are pricing operations, not just rent upside. Where turnover is low, the plan has to work at near-guideline rent growth.
  2. Capex programs are a selling point. Sellers of tired assets can attract buyers who see repairs as the value-creation plan.
  3. Replacement cost is the floor in the argument. With new construction expensive, well-located older towers bought below replacement cost become easier to justify.

How the capital program performs over the next two years, and whether tenant retention holds, will be the real test of this approach.

Sources

[1] Groupe Dumont moves into Toronto with 1,200-unit multifamily acquisition, RENX (Aug. 26, 2026): https://renx.ca/groupe-dumont-moves-into-gta-market-with-multifamily-acquisition

[2] Ontario Capping Rent Increases at the Rate of Inflation, Ontario Newsroom: https://news.ontario.ca/en/release/1006132/ontario-capping-rent-increases-at-the-rate-of-inflation