The Economics of Apartment Construction with Andrew Joyner of Tricon Residential
Andrew Joyner is our returning guest in this episode. He is the Managing Director at Tricon Residential and head of their Canadian apartment platform, tasked with trying to create thousands of brand-new apartment units in the Greater Toronto Area.
We hear about what elements Andrew looks for when considering a new area to invest in and why there is little need to do new research on what amenities tenants want. He also gets into different types of financing and tells us why relationships are so important in this space.
Topics covered include:
- How Tricon determines the areas that they want to invest in.
- Focusing on long-term trade relationships to avoid becoming too passive.
- Inclusionary zoning and how it will affect Toronto.
- The Rental Construction Financing Initiative (RCFi) and how it improves the bottom line.
- What matters more than rates and proceeds in a loan deal to Andrew.
- How partnerships helped Andrew when COVID-19 first hit.
- An example of the importance of relationships in real estate from the 1990s recession.
- Creative loans in Canada compared to other parts of the world.
- The loan process of CMHC.
- Looking at loans from banks and CMHC to decide which one is right for the situation.
- How Andrew views cash flow and amortization.
More about our guest….
Andrew Joyner leads Tricon Residential’s Canadian multi-family rental business. In this role, he designs and implements strategy, sources investment opportunities, and oversees teams responsible for business plan execution, including development, construction, and ongoing asset management. In addition, Mr. Joyner manages senior relationships with joint venture partners.
Prior to joining Tricon in 2016, Mr. Joyner worked at Canada Pension Plan Investment Board in Toronto, where he focused on real estate transactions across a number of asset classes throughout North America. Prior to that, he worked at Hines in London, UK, where he was responsible for property acquisitions and investment management of core, core-plus and opportunistic real estate strategies throughout Western Europe. In addition, Mr. Joyner previously worked at Goldman Sachs in New York in the investment banking division.
Mr. Joyner has a Master of Business Administration degree from Columbia University and an undergraduate degree in Economics from Queen’s University, from which he graduated with distinction, and is a CFA Charter holder. Mr. Joyner is a member of the Multi-Family Council of the Urban Land Institute.
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