Richmond Asset Management Enters Niagara With Apartment Acquisition

ST. CATHARINES, ON – February 10, 2026 – Richmond Asset Management has made a significant entry into the Niagara Region with the acquisition of a 79-unit apartment building, a move that signals growing investor confidence in Southwestern Ontario's secondary rental markets. The firm confirmed it has purchased the Capri Apartments at 20 Bradmon Drive in St. Catharines, marking its first asset in the region and a strategic expansion beyond its established portfolios in Windsor-Essex and Sarnia-Lambton.

The transaction places a new institutional landlord in a city grappling with evolving housing affordability dynamics. While the firm brings a promise of investment and property improvements, its arrival highlights a broader trend of capital flowing into smaller Ontario cities, raising questions about the future for local renters and the character of the housing market.

A New Landlord's Regional Ambitions

Richmond Asset Management, which officially launched its current platform in 2024 after years of acquisitions dating back to 2016, has rapidly scaled its operations. The firm now manages a diverse portfolio valued at $125 million, comprising 528 residential units and 100,000 square feet of retail space, primarily concentrated in Southwestern Ontario.

The acquisition of Capri Apartments is a key milestone in its stated objective to expand across the region. The building, located in the desirable Port Weller neighbourhood, consists of 48 two-bedroom and 31 one-bedroom units. Its proximity to green space and a waterfront path makes it an attractive property, aligning with the company's investment criteria.

"The property aligns with our strategy of acquiring properties in great locations, well below replacement cost and with an ability to add value," said David Barry, Managing Partner at Richmond, in a press release. The firm’s leadership also pointed to the region's underlying economic strengths as a key motivator.

"The Niagara region is well positioned for long-term economic growth, benefiting from a diversified economy, an attractive quality of life, and easy access to the GTHA and the US border," added Managing Partner Aly Somani. The firm has expressed its intention to be a long-term owner and a positive contributor to the community.

'Value-Add' Meets a Strained Rental Market

Central to Richmond's strategy is its "value-add" program. In the real estate investment world, this term typically involves renovating units, upgrading common areas, and improving building management to increase a property's value and rental income potential. While this can lead to an enhanced living experience, it often coincides with significant rent increases, particularly when units turn over.

This strategy is being deployed in a St. Catharines-Niagara market that is already a pressure point for many tenants. While the region's rental vacancy rate rose to 3.8% in 2024—a moderation from previous lows, partly due to a decline in international students—affordability remains a critical issue. Recent data shows the average rent for a one-bedroom apartment in St. Catharines hovers around $1,585, with two-bedrooms averaging $1,895.

The most significant financial impact for renters often occurs during tenant turnover. Across the St. Catharines-Niagara metropolitan area, rents for two-bedroom units that changed tenants in the last year were, on average, 27.6% higher than rents in units with long-term tenants. This turnover premium provides a powerful financial incentive for landlords to invest in renovations that may encourage tenant departure, a practice that concerns housing advocates.

Organizations like the Niagara Community Legal Clinic and other provincial tenant advocacy groups are actively involved in addressing issues of rent hikes, maintenance standards, and so-called 'renovictions.' The arrival of a new, well-capitalized investor with an explicit value-add strategy at Capri Apartments will be closely watched by these groups and the building's current residents.

The Investment Case for Secondary Cities

Richmond's move is emblematic of a larger investment trend where firms are looking beyond the saturated and high-priced markets of Toronto and Vancouver. Secondary markets like St. Catharines, London, and Windsor offer a compelling combination of lower acquisition costs and strong potential for growth, driven by fundamental economic and demographic shifts.

The Niagara Region has long been attractive due to its robust tourism sector, thriving wine and agricultural industries, and growing educational and healthcare institutions. Its relative affordability compared to the Greater Toronto and Hamilton Area (GTHA) has fueled population growth through migration, bolstering demand for housing.

However, the economic landscape is not without its complexities. Recent reports from the Canada Mortgage and Housing Corporation (CMHC) note that a recent dip in the international student population has slightly softened rental demand, contributing to the modest rise in vacancy. Despite this, investors like Richmond are making a long-term bet, seeing past short-term fluctuations to focus on the region's sustained growth trajectory and the persistent undersupply of quality rental housing across the province.

The acquisition underscores a continued confidence in Southwestern Ontario, a region characterized by steady rental demand and favourable demographic trends. By pairing local property management with its hands-on asset management approach, Richmond aims to capitalize on these fundamentals while, as it states, delivering an enhanced experience for tenants. How that balance between investor returns and tenant stability plays out at Capri Apartments may serve as a bellwether for the broader Niagara rental market.