Firms Deepen Bet on Toronto Family Rentals With New Project

TORONTO, ON – March 06, 2026 – In a move signaling sustained confidence in Toronto's rental market, Tempus Capital Inc. (CSE: TEMP) and development partner TUK Group have announced the closing of another joint project set to deliver up to eighteen new residential units to the city. The announcement confirms the continued momentum of the partnership’s $100 million investment program, which aims to aggressively tackle the city’s shortage of purpose-built rental housing.

This latest development, coupled with the disclosure that several additional sites are already under contract, solidifies the duo's strategy of targeting well-located urban properties for conversion into mid-scale rental communities. The initiative directly confronts a critical gap in the market for working professionals and families who find themselves caught between compact downtown condos and increasingly unattainable single-family homes.

Addressing the "Missing Middle"

Toronto's housing crisis is a well-documented challenge, characterized by a critically low vacancy rate that has hovered below 2% and average rental prices that continue to climb. A significant part of this crisis is the scarcity of the "missing middle"—appropriately sized and priced housing for families who have outgrown condominium living but are priced out of the freehold market.

The partnership between Tempus and TUK is strategically positioned to address this specific demographic. Their first joint project, announced in April 2025, serves as a blueprint for their vision: a 10-unit luxury rental building with spacious, family-friendly layouts of approximately 1,100 square feet, each featuring three bedrooms and a den. This approach marks a deliberate departure from the micro-condo trend that has dominated Toronto's development landscape for the past decade.

"This project reflects the market reality we are seeing today," stated Russell Tanz, President and CEO of Tempus Capital Inc., in the official press release. "Families need attainable, well-designed rental options and municipalities need partners who can deliver responsibly."

This sentiment is echoed by the development team, who see a fundamental shift in urban living. "Toronto is experiencing a shift in how people choose to live," added Jordan Alexander King, Partner at TUK Group. "The growth of mid-sized purpose-built rentals gives families the space they need at a price point that works. These projects strengthen communities while also providing predictable, sustainable returns."

The Investment Case for Purpose-Built Rentals

While the community benefits are clear, the partnership's $100 million program is underpinned by a robust investment thesis. In an often-volatile real estate market, purpose-built rental (PBR) housing is increasingly viewed by institutional and private investors as a resilient and stabilizing asset class. Unlike build-and-sell condominium projects, PBRs are designed for long-term ownership, providing a steady and predictable stream of income.

This asset class demonstrates strong fundamentals driven by consistent, non-discretionary demand. With Toronto's population continuing to grow and housing supply lagging, the demand for quality rental units remains exceptionally high. This leads to stable occupancy rates and reliable income generation, insulating investors from the cyclicality of the for-sale market.

Evan Ungar, Partner at TUK Group, commented on this financial resilience. "Our development pipeline continues to grow as we secure strategic sites across the city. This project and the additional properties under contract reflect our confidence in the long-term strength of the Toronto rental market," he noted. "Purpose-built rentals remain resilient, support community growth and provide the steady income characteristics long-term investors are seeking."

For a publicly traded entity like Tempus Capital, this stability is paramount. Tanz emphasized that PBRs "revitalize neighbourhoods and create long-term value while providing reliable performance for shareholders."

A Partnership Forged for Growth

The collaboration between Tempus Capital and TUK Group represents a strategic fusion of capital and specialized expertise. TUK Group, co-founded by Jordan Alexander King and Evan Ungar, has built a reputation for identifying and transforming underutilized urban properties. Their portfolio spans numerous Ontario cities and is centered on a philosophy of creating functional, community-oriented housing through thoughtful renovation and what they term "forced appreciation"—generating value through construction and strategic upgrades rather than simply waiting for market lift.

Tempus Capital, a publicly traded real estate firm, provides the financial horsepower and access to public markets necessary to scale this vision. With a diverse portfolio of income-generating properties across Canada, Tempus brings a wealth of experience in acquisition, development, and asset management. The $100 million joint program, formally established in 2025, allows TUK's development acumen to be deployed at a much larger scale.

This synergy enables the partnership to act nimbly in acquiring strategic sites while having the long-term capital commitment to see complex redevelopment projects through to completion. The first joint project is expected to be completed by September 2026, with the newly announced 18-unit development slated for completion by the fall of 2027.

Navigating Toronto's Development Landscape

Developing any form of housing in Toronto is not without its hurdles, including complex zoning laws and lengthy permitting processes. However, the partnership's focus on the "missing middle" aligns directly with the stated goals of municipal and provincial governments, which are actively seeking ways to increase housing density and affordability beyond the downtown core.

By focusing on converting and intensifying existing under-used residential sites into multi-unit communities, the venture contributes to a more sustainable model of urban growth. These mid-scale projects are often more palatable to existing neighborhoods than massive high-rise towers, yet they deliver a meaningful increase in housing supply. The projects bring new life to streetscapes, increase local foot traffic for businesses, and foster a sense of sustained community engagement.

As Toronto continues to grapple with a housing deficit projected to require over a million new homes in the next decade, initiatives like this one are critical. With more sites already under contract and a clear strategy for execution, the Tempus-TUK partnership is positioning itself as a significant contributor to the city's evolving housing solution.