AKELIUS CANADA
AKELIUS CANADA LTD - RENOVATIONS - INCREASE IN RENTS - AGI APPLICATIONS
AKELIUS CANADA LTD. - UPGRADING TO UPSCALE
Akelius Canada Ltd. is a subsidiary of Akelius Residential Property AB and has operated in Canada since 2011. The company is in the business of maximizing their investments into apartment properties by renovating apartments, increasing rents on average 39 %, cutting expenses by letting go of superintendents, passing on utility costs, charge for storage lockers and whatever else they can have the tenant pay for in other words repositioning their properties to attract a higher paying tenant.
LINK: Predatory Rent Practices in Toronto: The Akelius Model
BUILDING PERMITS
Akelius Canada Ltd has been performing renovations without building and electrical permits since entering the real estate market in 2011. By January 18, 2014, a total of 248 apartments were renovated within the city of Toronto come August 31 of the same year a total of 392 apartments of the then 2100 had been completed. The company was finally forced to start obtaining building permits in April of 2018 by then a total of 41.7% of the total portfolio had been renovated. Akelius owned 3645 apartments at the time in Toronto as mentioned in their year-end financial report December 2017. At the same time in Toronto, not a single electrical permit had been issued making it a total of four permits required for each apartment renovation The following questions need to be asked-
Why was Akelius Canada Ltd allowed by the city to perform this work without permits or any oversight for five years?
Why hasn't there been an audit by the city of Toronto, once they were notified this was going on, of all the buildings in Akelius Canada Ltd portfolio to ascertain the total number of renovations performed without permits and levied the appropriate fines and collection of the required fees for the permits for performing these renovations?
RENOVATIONS BEING PERFORMED WITHOUT BUILDING PERMITS
BUILDING PERMITS - FINALLY AKELIUS CANADA LTD HAVE BEEN ISSUED ORDERS TO COMPLY AND WORK STOPPAGE BY THE CITY OF TORONTO AFTER TENANTS COMPLAINED IN SIX OF THEIR BUILDINGS TO THE CITY DIRECTLY.
EXAMPLE
ELECTRICAL PERMITS
Where are the electrical permits and why hasn't there been an investigation by the ESA Electrical Safety Authority into these as the company has installed new washers, dryers, microwave units, countertop stoves, and ovens in each of these new renovations on buildings with electrical systems in most cases 30-60 years old? Have these buildings been inspected for this under the Ontario Electrical Safety Code? (Example 111 Lawton Blvd has had over seventy apartment units renovated and installed with these extra appliances into an electrical system from 1956 the year the building was built.) The company has now decided to add hanging outdoor air-conditioners on each new apartment renovation adding more to the electrical system load. We don't need another situation that occurred with the electrical system at 650 Parliament Street.
NOTE: These air conditioning units were not on the plans submitted by Akelius Canada Ltd to the city of Toronto when applying for renovation permits, units were installed after the inspection of the three apartments took place. Apartment 308, 606 and 610.
LOCATION: Outside 111 Lawton Blvd. Toronto Ontario - Imagine a potential 152 of these units installed and hanging from the building.
PROPERTY PLUMBING SYSTEM
Flooding has occurred in a number of apartment units within some of the Akelius buildings in the past few years. Part of the problem may be overloading the current plumbing systems (50-60 years old) by installing soaker tubs, dishwashers, and clothes washers in each of these newly renovated units where there hadn't been any before. Example: A building with 152 units has the potential of having the same number of dishwashers, soaker tubes and the same number of clothes washers installed. Another reason why the city of Toronto should have been more proactive in overseeing Akelius Canada Ltd and their renovations/gutting of apartment buildings.
FINAL COMMENT ON PERMITS
Part of the problem with the building permits has been the approach Akelius Canada Ltd. has taken with the city of Toronto in their application process. Now that Akelius Canada has started to apply for permits they apply for permits apartment unit by apartment unit. This is misleading as the city is not receiving accurate information as to what Akelius Canada Ltd. is wanting to do with the properties they purchase. The city of Toronto should be asking representatives of Akelius Canada Ltd. are you renovating just one apartment or are your intentions to renovate the complete building from the inside out, your company has purchased, and if so the city should review the entire building specs and make sure what the company is doing when it comes to renovations is acceptable.
INCREASED BUILDING RENTS - WHY IS AKELIUS ALLOWED TO FILE ABOVE GUIDELINE APPLICATIONS? THERE IS ALSO A TREND WITH AKELIUS CANADA LTD. IN THE EXAMPLE BELOW INDICATING A SUBSTANTIAL INCREASE IN RENT FROM THE END OF 2017 TO 2018. AS THE VACANCY RATE GOES DOWN IN TORONTO THEIR RENTS GO UP ON NEW VACANCIES. INCREASING RENT REVENUE AND INCREASING THE VALUE OF THEIR BUILDINGS.
EXAMPLE OF RENT INCREASES BY AKELIUS - POSTED ON WEBSITES BY DATE
EXAMPLE OF PROPERTY VALUE INCREASE AKELIUS CANADA LTD WILL REALIZE FROM THE DATE OF PURCHASE AUGUST 10, 2015 USING THE RENTAL INCREASES AT 111 LAWTON BLVD. YEARLY INCREASE IN RENTAL REVENUE SO FAR $400,000.00 SINCE TAKING OVER OWNERSHIP OF 111 LAWTON BLVD. AUGUST 10, 2015.
INCREASED PROPERTY VALUE - WHY IS AKELIUS ALLOWED TO FILE ABOVE GUIDELINE APPLICATIONS?
EARLY EXAMPLES OF THE INCREASE IN PROPERTY VALUE BY RENOVATING AND INCREASING RENTS THROUGH AGI APPLICATIONS:
798-800 Richmond Street Purchased on August 29, 2012, for $75,000,000.00 and after renovating 87 of the 556 apartment units the building was valued by CBRE in March 31,2014 for $97,110,000.00. How much is it worth today with further apartment renovations, increased rents and why was Akelius Canada Ltd. allowed to file above guideline applications? Every year Akelius Canada Ltd performs an in house valuation of all properties based on expenses, apartment renovations, and increased rental revenue. CBRE also does a valuation of a selected number of buildings to verify that Akelius Canada Ltd is valuing their properties properly. CBRE 2016 valued 19 properties and in 2017 valued 29. How much has your building increased in value by way of increased rents since the purchase by Akelius Canada Ltd?
127 Broadway Avenue purchased on October 22, 2012, for $7,000,000.00 and after renovating and increasing the rents of some of the apartment units the building was sold for $16,854,900.00 in May 2015. Why was Akelius Canada Ltd. allowed to file above guideline applications?
The bottom line here is Akelius Canada Ltd has increased the value of their real estate portfolio in the city of Toronto by multi-millions of dollars by renovating but most importantly increasing the rents substantially. Example: On average per year, the new rents for the newly renovated apartments increase by 39%. From the end of 2015 to the end of 2016 in the city of Toronto, the Akelius property portfolio increased by 23% in value on the same number of buildings year to year (12 month period).
HOW DOES THEIR BUSINESS MODEL WORK?
Fire the superintendent and the assistant increasing the value of the property. No longer have to pay salaries. Rent out their apartments at Akelius Canada Ltd higher rents adding upwards of a million dollars or more to the value of the property on the first day of taking over the building.
Increase all rents substantially on each new vacant apartment. Example $600.00 - $700.00 per one bedroom unit has a potential of adding $180,000.00 - $210,000.00 to the increasing value of a property. The value could be higher depending on the current rents at the time of purchase. Multiply this figure by the number of units. (See above rent samples)
Charge more for parking, extra for storage lockers $210.00 per year. transfer the cost of utilities over to the new tenants adding more value to the building when it comes to selling.
If that isn't enough Akelius Canada Ltd. then goes to the landlord and tenant board and files an above-guideline rent increase application to increase the revenue and value of their property further. Also, the Ontario government has on an annual basis helped the landlords to increase their property value by allowing them to increase rents from all tenants with a annual guideline each year. 2019 1.8%. Every dollar increase in revenue and every dollar decrease in property expenses increases the property value.
INFILL PROPOSAL FOR 230 OAK STREET
AKELIUS CANADA AND THE PROBLEM WITH THEIR BROWNFIELD PROPERTY LOCATED AT 230 OAK STREET AND THE FUEL LEAKING INTO THE DON RIVER
LINKS TO FURTHER INFORMATION:
230 Oak Street Fuel Leak into the Don Valley
March 5, 2018 Meeting
OMB - 230 Oak Street Application to erect a 32 storey apartment building onsite
November 7, 2018 Meeting
OMB - 230 Oak Street meeting to erect a 32 storey apartment building
May 27, 2019 Meeting is scheduled if the parties cannot agree on a major problem the brownfield property and the past leak that wasn't looked after before it got out of hand and not properly taken care of by the Akelius Canada personnel. Who was keeping the records of the site and logging any changes with the land as required by law? They were also informed by the previous owner to the matter of keeping records.
Tenants of 230 Oak Street should be looking at compensation from Akelius Canada Ltd for the future construction of a new apartment tower in front of theirs and the inconvenience it will cause for two-three years.
LINK: TENANTS WIN BIG
FINAL COMMENTS:
SEE LANDLORD AND TENANT BOARD SECTION FOR FINAL THOUGHTS OF ABOVE GUIDELINE APPLICATIONS AND HOW THEY ARE BEING MISHANDLED BY THE LANDLORD AND TENANT BOARD AND ALSO BY TENANTS
LINK: Landlord and Tenant Board Comments
AKELIUS CANADA LTD. - UPGRADING TO UPSCALE
Akelius Canada Ltd. is a subsidiary of Akelius Residential Property AB and has operated in Canada since 2011. The company is in the business of maximizing their investments into apartment properties by renovating apartments, increasing rents on average 39 %, cutting expenses by letting go of superintendents, passing on utility costs, charge for storage lockers and whatever else they can have the tenant pay for in other words repositioning their properties to attract a higher paying tenant.
LINK: Predatory Rent Practices in Toronto: The Akelius Model
BUILDING PERMITS
Akelius Canada Ltd has been performing renovations without building and electrical permits since entering the real estate market in 2011. By January 18, 2014, a total of 248 apartments were renovated within the city of Toronto come August 31 of the same year a total of 392 apartments of the then 2100 had been completed. The company was finally forced to start obtaining building permits in April of 2018 by then a total of 41.7% of the total portfolio had been renovated. Akelius owned 3645 apartments at the time in Toronto as mentioned in their year-end financial report December 2017. At the same time in Toronto, not a single electrical permit had been issued making it a total of four permits required for each apartment renovation The following questions need to be asked-
Why was Akelius Canada Ltd allowed by the city to perform this work without permits or any oversight for five years?
Why hasn't there been an audit by the city of Toronto, once they were notified this was going on, of all the buildings in Akelius Canada Ltd portfolio to ascertain the total number of renovations performed without permits and levied the appropriate fines and collection of the required fees for the permits for performing these renovations?
RENOVATIONS BEING PERFORMED WITHOUT BUILDING PERMITS
BUILDING PERMITS - FINALLY AKELIUS CANADA LTD HAVE BEEN ISSUED ORDERS TO COMPLY AND WORK STOPPAGE BY THE CITY OF TORONTO AFTER TENANTS COMPLAINED IN SIX OF THEIR BUILDINGS TO THE CITY DIRECTLY.
EXAMPLE
Akelius Canada Ltd has now started to take out permits after five years performing renovations without them. How many apartments were renovated without permits?
ELECTRICAL PERMITS
Where are the electrical permits and why hasn't there been an investigation by the ESA Electrical Safety Authority into these as the company has installed new washers, dryers, microwave units, countertop stoves, and ovens in each of these new renovations on buildings with electrical systems in most cases 30-60 years old? Have these buildings been inspected for this under the Ontario Electrical Safety Code? (Example 111 Lawton Blvd has had over seventy apartment units renovated and installed with these extra appliances into an electrical system from 1956 the year the building was built.) The company has now decided to add hanging outdoor air-conditioners on each new apartment renovation adding more to the electrical system load. We don't need another situation that occurred with the electrical system at 650 Parliament Street.
NOTE: These air conditioning units were not on the plans submitted by Akelius Canada Ltd to the city of Toronto when applying for renovation permits, units were installed after the inspection of the three apartments took place. Apartment 308, 606 and 610.
LOCATION: Outside 111 Lawton Blvd. Toronto Ontario - Imagine a potential 152 of these units installed and hanging from the building.
PROPERTY PLUMBING SYSTEM
Flooding has occurred in a number of apartment units within some of the Akelius buildings in the past few years. Part of the problem may be overloading the current plumbing systems (50-60 years old) by installing soaker tubs, dishwashers, and clothes washers in each of these newly renovated units where there hadn't been any before. Example: A building with 152 units has the potential of having the same number of dishwashers, soaker tubes and the same number of clothes washers installed. Another reason why the city of Toronto should have been more proactive in overseeing Akelius Canada Ltd and their renovations/gutting of apartment buildings.
FINAL COMMENT ON PERMITS
Part of the problem with the building permits has been the approach Akelius Canada Ltd. has taken with the city of Toronto in their application process. Now that Akelius Canada has started to apply for permits they apply for permits apartment unit by apartment unit. This is misleading as the city is not receiving accurate information as to what Akelius Canada Ltd. is wanting to do with the properties they purchase. The city of Toronto should be asking representatives of Akelius Canada Ltd. are you renovating just one apartment or are your intentions to renovate the complete building from the inside out, your company has purchased, and if so the city should review the entire building specs and make sure what the company is doing when it comes to renovations is acceptable.
INCREASED BUILDING RENTS - WHY IS AKELIUS ALLOWED TO FILE ABOVE GUIDELINE APPLICATIONS? THERE IS ALSO A TREND WITH AKELIUS CANADA LTD. IN THE EXAMPLE BELOW INDICATING A SUBSTANTIAL INCREASE IN RENT FROM THE END OF 2017 TO 2018. AS THE VACANCY RATE GOES DOWN IN TORONTO THEIR RENTS GO UP ON NEW VACANCIES. INCREASING RENT REVENUE AND INCREASING THE VALUE OF THEIR BUILDINGS.
EXAMPLE OF RENT INCREASES BY AKELIUS - POSTED ON WEBSITES BY DATE
| 95 Jameson Avenue | Bachelor | 1 Bedroom | 2 Bedroom |
| GREENWIN June 19, 2013 | $850 | $1,010 | |
| AKELIUS June 23, 2016 | $1,350-$1,400 | $1,550-$1,650 | |
| AKELIUS September 22, 2017 | $1,445 -to $1,460 | $1,675 -to $1,690 | |
| AKELIUS August 27, 2018 | $1,795 -to $1,900 | $1,995 -to $2,800 | |
| 81 and 83 Isabella Street | Bachelor | 1 Bedroom | 2 Bedroom |
| GREENWIN August 14, 2013 | $1,050 | ||
| AKELIUS October 07, 2016 | $1,425 -to $1,550 | ||
| AKELIUS January 23, 2018 | $1,500 -to $1,550 | ||
| Akelius August 27, 2018 | $1,600 -to $1,700 | ||
| 77 Spencer Avenue | Bachelor | 1 Bedroom | 2 Bedroom |
| BRIARLANE MGMT 2013 | $1,000 | $1,350 | $1,600 |
| AKELIUS May 07, 2015 | $1,095-$1,195 | $1,395-$1,495 | $1,595-$1,695 |
| AKELIUS December 20, 2017 | $1,325 -to $1,400 | $1,575 -to $1,625 | $1,995 -to $2,025 |
| Akelius August 27, 2018 | $1,475 -to $1,600 | $1,795 -to $1,900 | $1,995 -to $2,800 |
| 25 Eccelston Drive | Bachelor | 1 Bedroom | 2 Bedroom |
| GREENWIN February 14, 2014 | $825.00 | $890.00 | $1,075.00 |
| AKELIUS July 15, 2015 | $1,025-$1,100 | $1,130-$1,400 | $1,500-$1,550 |
| AKELIUS September 22, 2017 | $1,025 -to $1,100 | $1,295 -to $1,425 | $1,525 -to $1,595 |
| Akelius August 27, 2018 | $1,195 -to $1,250 | $1,500 -to $1,595 | $1,800 -to $1,850 |
| 111 Lawton Blvd | Bachelor | 1 Bedroom | 2 Bedroom |
| MLT PROP. LTD August 9, 2015 | $1,000 | $1,200 | $1,600 |
| AKELIUS May 8, 2016 | $1,250-$1,350 | $1,625-$1,695 | $2,050-$2,150 |
| AKELIUS December 11, 2017 | $1,250 -to $1,350 | $1,695 -to $1,750 | $2,150 -to $2,300 |
| Akelius August 27, 2018 | $1,550 -to $1,650 | $1,800 -to $1,900 | $2,400 -to $2,700 |
BACHELOR
|
RENT INCREASE
|
ADDED VALUE INCREASE
|
MLT PROP. LTD August 9, 2015
|
$1,000
|
|
AKELIUS May 8, 2016
|
$1,250-$1,350
|
$75,000.00 - $105,000.00
|
AKELIUS December 11, 2017
|
$1,250 -to $1,350
|
|
Akelius August 27, 2018
|
$1,550 -to $1,650
|
$90,000.00 - $90,000.00
|
VALUE INCREASE PER UNIT
|
$165,000.00 - $195,000.00
|
|
ONE BEDROOM
|
RENT INCREASE
|
ADDED VALUE INCREASE
|
MLT PROP. LTD August 9, 2015
|
$1,200
|
|
AKELIUS May 8, 2016
|
$1,625-$1,695
|
$127,500.00 - $148,500.00
|
AKELIUS December 11, 2017
|
$1,695 -to $1,750
|
$21,000.00 - $16,500.00
|
Akelius August 27, 2018
|
$1,800 -to $1,900
|
$31,500.00 - $45,000.00
|
VALUE INCREASE PER UNIT
|
$180,000.00 - $210,000.00
|
|
TWO BEDROOM
|
RENT INCREASE
|
ADDED VALUE INCREASE
|
MLT PROP. LTD August 9, 2015
|
$1,600
|
|
AKELIUS May 8, 2016
|
$2,050-$2,150
|
$121,500.00 - $165,000.00
|
AKELIUS December 11, 2017
|
$2,150 -to $2,300
|
$30,000.00 - $45,000.00
|
Akelius August 27, 2018
|
$2,400 -to $2,700
|
$75,000.00 - $120,000.00
|
VALUE INCREASE PER UNIT
|
$226,500.00 - $330,000.00
|
INCREASED PROPERTY VALUE - WHY IS AKELIUS ALLOWED TO FILE ABOVE GUIDELINE APPLICATIONS?
EARLY EXAMPLES OF THE INCREASE IN PROPERTY VALUE BY RENOVATING AND INCREASING RENTS THROUGH AGI APPLICATIONS:
798-800 Richmond Street Purchased on August 29, 2012, for $75,000,000.00 and after renovating 87 of the 556 apartment units the building was valued by CBRE in March 31,2014 for $97,110,000.00. How much is it worth today with further apartment renovations, increased rents and why was Akelius Canada Ltd. allowed to file above guideline applications? Every year Akelius Canada Ltd performs an in house valuation of all properties based on expenses, apartment renovations, and increased rental revenue. CBRE also does a valuation of a selected number of buildings to verify that Akelius Canada Ltd is valuing their properties properly. CBRE 2016 valued 19 properties and in 2017 valued 29. How much has your building increased in value by way of increased rents since the purchase by Akelius Canada Ltd?
127 Broadway Avenue purchased on October 22, 2012, for $7,000,000.00 and after renovating and increasing the rents of some of the apartment units the building was sold for $16,854,900.00 in May 2015. Why was Akelius Canada Ltd. allowed to file above guideline applications?
The bottom line here is Akelius Canada Ltd has increased the value of their real estate portfolio in the city of Toronto by multi-millions of dollars by renovating but most importantly increasing the rents substantially. Example: On average per year, the new rents for the newly renovated apartments increase by 39%. From the end of 2015 to the end of 2016 in the city of Toronto, the Akelius property portfolio increased by 23% in value on the same number of buildings year to year (12 month period).
HOW DOES THEIR BUSINESS MODEL WORK?
Fire the superintendent and the assistant increasing the value of the property. No longer have to pay salaries. Rent out their apartments at Akelius Canada Ltd higher rents adding upwards of a million dollars or more to the value of the property on the first day of taking over the building.
Increase all rents substantially on each new vacant apartment. Example $600.00 - $700.00 per one bedroom unit has a potential of adding $180,000.00 - $210,000.00 to the increasing value of a property. The value could be higher depending on the current rents at the time of purchase. Multiply this figure by the number of units. (See above rent samples)
Charge more for parking, extra for storage lockers $210.00 per year. transfer the cost of utilities over to the new tenants adding more value to the building when it comes to selling.
If that isn't enough Akelius Canada Ltd. then goes to the landlord and tenant board and files an above-guideline rent increase application to increase the revenue and value of their property further. Also, the Ontario government has on an annual basis helped the landlords to increase their property value by allowing them to increase rents from all tenants with a annual guideline each year. 2019 1.8%. Every dollar increase in revenue and every dollar decrease in property expenses increases the property value.
INFILL PROPOSAL FOR 230 OAK STREET
AKELIUS CANADA AND THE PROBLEM WITH THEIR BROWNFIELD PROPERTY LOCATED AT 230 OAK STREET AND THE FUEL LEAKING INTO THE DON RIVER
LINKS TO FURTHER INFORMATION:
230 Oak Street Fuel Leak into the Don Valley
March 5, 2018 Meeting
OMB - 230 Oak Street Application to erect a 32 storey apartment building onsite
November 7, 2018 Meeting
OMB - 230 Oak Street meeting to erect a 32 storey apartment building
May 27, 2019 Meeting is scheduled if the parties cannot agree on a major problem the brownfield property and the past leak that wasn't looked after before it got out of hand and not properly taken care of by the Akelius Canada personnel. Who was keeping the records of the site and logging any changes with the land as required by law? They were also informed by the previous owner to the matter of keeping records.
Tenants of 230 Oak Street should be looking at compensation from Akelius Canada Ltd for the future construction of a new apartment tower in front of theirs and the inconvenience it will cause for two-three years.
LINK: TENANTS WIN BIG
FINAL COMMENTS:
SEE LANDLORD AND TENANT BOARD SECTION FOR FINAL THOUGHTS OF ABOVE GUIDELINE APPLICATIONS AND HOW THEY ARE BEING MISHANDLED BY THE LANDLORD AND TENANT BOARD AND ALSO BY TENANTS
LINK: Landlord and Tenant Board Comments