For the past five years, Société immobilière Bélanger has built one of Quebec’s most stable multifamily portfolios: nearly 4,000 rental units with a vacancy rate below 1%. The company is now expanding into Ottawa, Gatineau, Edmonton, and Calgary, with plans to achieve significant volume in each city.
This move comes as elevated interest rates and market uncertainty have sidelined many institutional investors. But for Evguenia Kapchii, Head of Acquisitions at Société immobilière Bélanger, these conditions create opportunity.
“When nobody moves, you move,” Kapchii says. “This is the best way to seize opportunities.”
The push into new markets is driven by limited growth prospects in Quebec’s largest cities. Montreal is crowded with buyers chasing fewer deals, while Quebec City offers limited scale for acquiring 100-plus-unit buildings.
“Montreal is becoming a saturated market,” Kapchii explains. “We want to go to places where there are still great opportunities.”
Ottawa, Gatineau, Edmonton, and Calgary share characteristics that make them appealing for multifamily investment: strong employment rates, expanding infrastructure, and healthy rental demand. They also have less institutional competition than Toronto or Vancouver, where large REITs dominate.
“We go where there are good employment rates and where vacancies are getting lower,” Kapchii says.
The company expects 2025 and 2026 to mark a period of market adjustment, as sellers become more realistic about pricing and buyers with capital can secure better deals. Kapchii anticipates increased competition by 2027, based on economist forecasts, but believes the current environment offers a rare window for acquisition.
Société immobilière Bélanger targets multifamily buildings with at least 100 units, constructed before 2010 or 2015. The focus is on stabilized, older assets—brick, concrete, wood-frame, or townhomes—with existing tenant pools.
Newer construction does not fit the company’s strategy. Across Quebec, new apartment towers are struggling with high vacancy rates, forcing landlords to offer incentives such as free rent or parking to attract tenants. Older buildings, typically more affordable, rent quickly at full price.
“New builds now, most of them are empty,” Kapchii says. “They’re too expensive.”
Instead, the company invests in repositioning older properties with energy-efficient upgrades—new boilers, improved insulation, and modern thermostats—rather than luxury finishes or high-end amenities. This year, they are investing $5 million to retrofit 60% of their portfolio for energy efficiency.
“People are not after aesthetics,” Kapchii explains. “You have to make sure the bones and muscles are solid.”
This approach delivers stable cash flow, lower vacancy risk, and access to favorable financing through programs like CMHC’s MLI Select, which rewards affordability, accessibility, and energy efficiency.
The expansion comes as many institutional players have stepped back. REITs, once aggressive buyers, are now focused on optimizing existing portfolios and reducing vacancies. With lower stock prices, selling assets has become more attractive than acquiring new ones.
“REITs right now are in a big pause,” Kapchii says. “They’re all about optimizing their NOI and reducing their vacancies.”
This pause has created opportunities for private investors with capital. Two years ago, as interest rates began rising, Société immobilière Bélanger sold select assets to pay down debt and strengthen its balance sheet. The company now has cash on hand and the flexibility to move quickly on acquisitions.
“We do not have investors to report to,” Kapchii says. “It’s much simpler to do acquisitions for a private company. You have one phone call to make.”
Speed is crucial in a market where off-market deals often offer better terms than public listings. Kapchii’s team builds relationships with building owners, sometimes spending years developing trust before a deal is finalized. One recent Montreal acquisition took 2.5 years to close due to family involvement.
“Sometimes a deal is not going to work out, but because you appreciated it, they’ll come back,” she says.
The expansion highlights a trend in Canadian multifamily investment: while Toronto and Vancouver remain dominated by institutional capital, secondary markets are attracting increased attention from private investors seeking less competition and better value.
Edmonton and Calgary offer strong population growth, diversified economies, and rental demand exceeding new supply. Ottawa and Gatineau benefit from stable government employment and proximity to Quebec, making them logical targets for a Quebec-based investor.
For sellers, the message is clear: buyers with capital are active but selective. Overpriced properties will linger, while well-maintained buildings with solid cash flow and reasonable expectations will transact.
“Prices right now do not follow suit,” Kapchii says. “Sellers are going to ask crazy prices. But I think it needs a period of stabilization.”
Expanding into four new markets during a period of uncertainty is a calculated move for Société immobilière Bélanger. With institutional buyers sidelined and market conditions stabilizing, the company aims to acquire quality assets before competition intensifies.
“You have to seize the opportunities while everyone is staying static,” Kapchii says. For investors watching from the sidelines, the lesson is clear: sometimes the best time to act is when others are waiting.
This article provides insights into Canadian multifamily investment trends. It is not legal, financial, or investment advice.
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