Webinar: Meet our Multiplex Builder Partner
Toronto multiplex investing is one of the few active real estate strategies that still makes sense in today's market. In this webinar, Apollo Realty Group and our building partner, Hawk Property Developments (The Nest by Hawk), show how investors use a Toronto multiplex builder to turn one lot into several rental homes, including how Hawk's fixed-price contracts protect your budget.
Why Toronto multiplexes
About 70% of Toronto falls within Neighbourhoods ("Yellow Belt") zones, which are mostly single-family.
As-of-right zoning updates now allow a 4-plex plus an ADU, up to a 6-plex plus an ADU.
Less competition: multiplexes don't compete with large-scale developments or end users, and investors who act early face fewer rivals.
Looking ahead, many real estate investors will either shift toward passive options like REITs and funds, or invest in the knowledge and resources needed to keep investing actively. As the number of active investors declines, those who remain stand to benefit from reduced competition and some of the most lucrative incentives and policies in decades.
Toronto multiplex incentives investors need to know
As-of-right zoning: 4-plex and 6-plex, each with an ADU.
No development charges ($200K+ in savings).
HST construction rebate.
Accelerated depreciation.
CMHC MLI Select: the government's top tool to incentivize the development of rental units (details below).
Incentives and program terms can change, so confirm current details with your advisors before investing.
What a Toronto multiplex builder does
Hawk's team handles the process from property selection to leasing. The Nest by Hawk follows a five-step path, with about 15 months from closing to refinancing:
Hunt: find or assess a site where the numbers work.
Organize: coordinate design, zoning, committee of adjustment approvals, permits and budget.
Make: manage construction while you stay informed, with progress updates and your approval on key decisions.
Earn: lease and stabilize the building, with leasing and property management coordinated for you.
Scale: hold it for rental income, or refinance and reinvest in the next project to build long-term wealth.
Builder credentials: 15+ years of building experience, 500+ completed projects across the GTA, 100+ vetted trades, and Tarion-approved builder status.
Fixed-Price Multiplex Construction in Toronto: Hawk's Safety Net
Once your detailed quote is agreed, the price is fixed.
Hawk offers fixed-price contracts on its multiplex builds. After the detailed quote is agreed, the quote stays fixed as long as there are no client changes and no major site-specific issues that arise during the project.
Detailed quote first: the full project budget is planned and confirmed with the trades before construction begins.
Price certainty: once the quote is agreed, it is fixed, which protects you against one of the biggest risks in any construction project: cost overruns.
What can change it: only changes requested by the client, or major site-specific issues that arise.
Hawk owns its mistakes: as founder Dane Hawkins puts it, if they break a tile, that's on them.
A fixed price is a major safety net for investors, and one of the biggest differentiators when you're choosing a Toronto multiplex builder.
The right property comes first
A great multiplex starts with the right site. Three things matter most:
Location: tenants, comparable rents and transit.
Buildable space: zoning, access, trees and servicing.
A workable price: land cost that fits within the full project budget.
Already own a property? Hawk assesses what you could build. Looking to buy? They help you find a site where the numbers work. Every site is tested with HouseStacker, Hawk's proprietary feasibility app.
Apollo's ideal multiplex buy box
Detached lots at least 25' × 120'.
Purchase price less than 30% of final value.
Premium areas with the strongest rents.
Areas with structural supply barriers.
Land that can be severed into two lots.
Bonus: existing 3- or 4-plexes with ADU potential.
Rental homes tenants want
A front door of their own, not a hallway of apartments.
Space for everyday life, with a focus on 2- and 3-bedroom units.
In-suite laundry and modern, energy-efficient construction.
Close to mass transit with strong walkability scores.
Toronto multiplex investing: a real example
The example is a Branstone project: a 6-unit main building plus a garden suite on a 25' × 138' lot. An existing home on an underused lot becomes seven rental homes built for long-term ownership.
Purchase price: $840,000
Total project cost: about $2.95M
As-if-complete appraised value: $3.54M
Projected development spread: roughly $590K (completed property value less total project cost)
Where the $2.95M goes
Land and closing: $871,000
Construction (hard costs): $1,775,000
Design and fees (soft costs): $120,000
Financing: $184,000
Hard costs are planned at $275–$295 per sq. ft., or about $476 per sq. ft. all-in including land. These are illustrative figures, not guarantees.
Multiplexes Hawk owns and manages
Hawk doesn't only build for clients. It owns and manages multiplexes too, so it brings an owner's perspective to every project it builds.
Lisgar St, Toronto 4-plex: $2.0M property value, converted to four units and leased within one month, with a 23% first-year ROI.
Holwood Ave, Toronto 4-plex: $1.75M property value, a four-unit conversion in a transit-focused location leased within one month, with an 18% first-year ROI.
Hurontario St 6-plex: $2.0M mixed-use property with owner-occupied space plus rental income, at a 7% cap rate.
Past results are not a guarantee of future performance.
How much capital do you need?
Private construction financing: plan for roughly 25–30% of the project cost, or $750K–$900K on an illustrative $3.0M project, to cover acquisition equity, deposits and working capital.
CMHC-insured construction financing: for qualifying rental projects this can mean lower upfront capital, though the extra approvals can extend the project timeline.
The goal is to match the financing plan to your capital and timeline.
CMHC MLI Select multiplex financing at a glance
Who it's for: commercial residential loans for projects of 5+ units that address affordability, accessibility or energy efficiency.
Leverage: up to 95% loan-to-value (85% is more common in Toronto and the GTA).
Amortization: up to 50 years.
Construction financing: up to 95% loan-to-cost.
Qualification: the property qualifies for the loan, not your income. It is net-worth based, with limited recourse and no limit on the number of properties.
Terms vary by lender and change over time. Confirm current program details before you invest.
Your Toronto multiplex team
Apollo Realty Group: property acquisition, MLI financing support, construction and architectural support, legal and corporate structure, and leasing and property management, with access to on- and off-market opportunities.
Hawk Property Developments (The Nest by Hawk): our building partner, handling design and construction.
NHDS: recognized as one of Toronto's leading authorities in multiplex and "missing middle" housing, with deep expertise in feasibility, approvals strategy and complex zoning and municipal processes.
Foremost: our private lending partner, providing first and second mortgage loans of up to $20 million for construction projects in Ontario.
CMLS: our commercial lending partner, a full-service commercial mortgage provider.
Managing the risks of multiplex investing
Every investment carries risk, and multiplexes are no exception. In the webinar, we educate investors on the main risks and how best to plan for each one, so you can make informed decisions. The points below are general education, not guarantees.
Construction cost overruns: start with a detailed budget that is confirmed before construction begins, and ask your builder about fixed-price terms.
Construction delays: plan a realistic schedule. The example project allows about 15 months from closing to refinancing, and approvals can add time, especially with CMHC-insured financing.
The wrong financing strategy: compare private construction financing with CMHC-insured options and match the plan to your capital and timeline.
Falling rents or rising vacancy: underwrite conservatively (our models assume rents 5% below market) and build the homes tenants want, such as 2- and 3-bedroom units near transit.
Access to cash and capital: know your all-in numbers before you buy, including the 25–30% planning range for private financing.
Lower-than-expected refinancing: test the numbers up front with a feasibility tool and target projects where the completed value is worth more than the total cost to deliver.
Liquidity: real estate is not fully liquid, so plan your time horizon and cash reserves before you commit.
Take the next step
Whether you already own a lot or want help finding one, book an intro call with Apollo Realty Group (financing, acquisition and strategy) or Hawk (design and construction).
Apollo Realty Group · 416-570-0063 · blair@apollorealestate.ca
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