High Art Capital & the Building Ontario Fund
Province-backed fund buys unsold Toronto condos · Briefing, September 23, 2026
High Art Capital paid $22.3 million for 43 unsold units at Line 5, a condo tower at Yonge and Eglinton, about $518,000 per unit. It is the first disclosed purchase by a $1.3 billion fund anchored by up to $300 million from the Building Ontario Fund (BOF), a provincial Crown agency. The fund plans to buy about 2,200 unsold GTA condos and rent them out, with 550 kept affordable permanently.
How the fund works
| Term | Detail |
| Capital | Min. $1.3B: up to $300M BOF mezzanine debt (~23%), ~$1B private and institutional |
| Units | ~2,200 rentals; ~550 affordable in perpetuity |
| Affordable rent | Lower of 25% below market or 30% of GTA median gross household income |
| What it buys | Blocks of 10+ vacant units, one building, completed 2023 or later; Toronto, Durham, Halton, Peel, York |
| Exit | Most market units sold after a minimum five-year hold |
| Operators | Tridel (Del Condominium Rentals) and Menkes |
Figure 1. Capital stack and target unit mix
Why the units are for sale
Finished, unsold condos held by developers doubled in a year to a record 5,001 units in Q2 2026, and no new projects launched in either Q1 or Q2 2026.
Figure 2. Completed, unsold new condo inventory, GTHA
High Art’s price is below every market benchmark, including the average resale condo.
Figure 3. Price per unit vs. market benchmarks
What to watch
- The subsidy question. BOF says no direct subsidy was needed, but its loan rate and terms are not public, so the claim can’t be tested.
- Who takes the risk. The province’s money has capped returns; private investors keep the upside from selling ~1,650 units after 2031, when new supply is forecast to dry up.
- Rental demand. GTHA rental vacancy hit 5.4% in Q1 2026 and two-thirds of rental buildings offered incentives, so leasing up may be slow.
- A new price benchmark. ~$518K per unit is a public bulk price that lenders and appraisers can now use against other unsold units.
Open item: one listing site shows Line 5 finishing in 2022, before the fund’s 2023 cutoff. Check the registration date.
Sources: Building Ontario Fund – High Art initiative · High Art Capital press release, Mar. 10, 2026 · Urbanation – Q2 2026 GTHA condo market · Urbanation – Q1 2026 rental market · The Globe and Mail – High Art pays $22.3M for 43 units · The Globe and Mail – fund and Ontario tax break (Mar. 2026)