Groundbreaking at 270 Sheppard Avenue: A Swift Move in Toronto's Rental Market

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ELM Developments and Fiera Real Estate have initiated construction on a new rental project at 270 Sheppard Avenue West, aiming to address the pressing need for family-sized rental units in Toronto.

On January 29, ELM Developments and Fiera Real Estate finalized the acquisition of the site located at 270 Sheppard Avenue West. The project saw significant progress as they broke ground on June 17. In a real estate market where rental developments often endure lengthy rezoning processes, moving from purchase to construction in less than five months is a notable achievement, one that ELM and Fiera strategically planned for this site. The forthcoming building will stand nine storeys tall and will comprise 205 rental suites, conveniently situated just steps away from Sheppard–Yonge Station, which serves as the interchange for Lines 1 and 4 and ranks as the fourth-busiest stop in Toronto’s subway system.
The joint venture is structured with ELM as the developer and Fiera as the institutional equity partner. The rapid progress of this project can be attributed to a pivotal decision made by ELM to retain the existing nine-storey zoning of the site instead of pursuing a taller structure. Opting for a larger building would have necessitated a rezoning process, public hearings, and potentially a lengthy appeal to the Ontario Land Tribunal—pathways that can consume years and have stalled numerous valuable projects. Instead, ELM opted to redesign the previously approved “wedding-cake” style into a more streamlined mid-rise configuration, which was successfully approved through a minor variance, resulting in approximately 15% more rental units and garnering support from the City in a matter of months rather than years.
The timeline for demolition was also expedited, with permits for the six houses on the site being issued on June 4. The building permit was applied for and accepted in the same week. Shoring work is scheduled to commence in mid-July. The rental suites are specifically designed with families in mind, addressing a significant gap in Toronto’s housing market. Approximately two-thirds of the 205 units will feature two- and three-bedroom configurations, including 15 three-bedroom suites—these larger family-oriented spaces have become increasingly difficult for renters to find, as the market has predominantly focused on smaller studio and one-bedroom units that are quicker to finance.
The timing of this project is critical as national housing starts fell to their lowest level since 2009 in 2025, according to the Canada Mortgage and Housing Corporation (CMHC). Given that it takes years for a building to become occupied, the current shortfall in housing supply will inevitably lead to future shortages. Each family-sized unit that is initiated now will be available when the demand is at its peak. "Families are renting by choice and necessity, and the market hasn’t kept pace," stated Elliot Steiner, CEO and President of ELM Developments. "We move quickly when a site is de-risked. The faster we build, the sooner those homes become available."
Fiera Real Estate is backing the project based on its strong fundamentals and ELM’s reputation as a capable developer. Henryk Gelbert, Managing Director of Real Estate Financing at Fiera, commented, "We’re investing institutional capital into transit-oriented rental developments because the demand is robust and the supply hasn’t kept up. The 270 Sheppard project is a perfect example of that—it’s in the right location, features the right mix of unit types, and is partnered with a developer who can execute it effectively."
The construction will be managed by ELM Forward, ELM’s in-house development and construction management team, ensuring that all aspects of development, construction, and asset management are handled under one roof. The building will incorporate a geothermal heating and cooling system, which will reduce both emissions and utility costs for tenants. Parking will primarily be situated underground, with around 6,500 square feet designated for street-level retail, which is expected to include a café and a specialty grocery store. Amenities will feature a fitness room, co-working spaces, a pet washing area, and a rooftop terrace equipped with a barbecue and lounge area. Additionally, the project is designed to meet the Toronto Green Standard and aims for Fitwel Level 2 certification.
Nearby, Earl Bales Park offers 127 acres of trails, gardens, and an outdoor amphitheatre, enhancing the appeal of the location. The architectural design is being spearheaded by Studio JCI, and the first residents are anticipated to move in by late 2028.

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