One Firm. $500 Million. 1,000 Unsold Toronto Condos.

Montreal-based Jesta Group is making its biggest bet yet — snapping up developer inventory at deep discounts and turning it into rentals. Here's the story, and what it means for you.

3-minute read  ·  May 15, 2026

$500M

Total planned acquisitions over 12 months

1,000+

Condo units targeted in downtown Toronto

35-yr

Low in condo sales, Q1 2026 (Urbanation)

THE STORY

Toronto's condo market is having its worst year in a generation. Sales hit a 35-year low in Q1 2026. A record 4,295 newly completed units sat unsold — more than double last year, five times higher than 2024. Zero new condo projects broke ground in the entire Greater Toronto area. The market, in short, is frozen.

Into that freeze walked Jesta Group. The Montreal-based, family-owned real estate firm — founded in 1992 by Elliott Aintabi with operations spanning New York, London, Paris, Miami, and the Mediterranean — announced on May 13th that it had quietly purchased a bulk portfolio of condos near Toronto Metropolitan University for $30 million. That was just the opening move.

"We're approaching developers saying, 'Would you like to sell all of your inventory?'"

— Anthony O'Brien, Senior Managing Director, Jesta Group

Jesta's full plan: spend $500 million over 12 months to acquire more than 1,000 units, funded by $100 million in equity (including $20M of their own capital plus four to five outside investors) and $400 million in debt. The firm calls it one of the largest single-firm bulk residential acquisitions in Toronto's history.

The math makes sense on both sides. Developers are bleeding — sitting on finished product they can't sell. Jesta is buying at $700–$800 per square foot, well below the $1,189/sq ft asking average recorded by Urbanation in Q1. A key unlock: Ontario's HST rebate removes 13% in combined taxes for buyers of newly built homes intended for rental use, provided construction started before March 31, 2026. The deadline to complete qualifying purchases is March 31, 2027 — giving Jesta a tight but workable window. O'Brien said the rebate was the catalyst that made the first deal work.

Jesta's criteria are selective: downtown core only, minimum 30 unsold units per building, no interior bedrooms with glass walls ("We just don't see that as livable," O'Brien said), and units as small as 350 sq ft. The firm is not interested in peripheral markets like Vaughan Metropolitan Centre, even with its glut of inventory.

Once acquired, the units get rented out at roughly $4.25 per square foot — about $2,125/month on a 500 sq ft unit. The play is long-term: with virtually no new supply launching today, Jesta is betting on a supply crunch by 2030 as Toronto's population continues to grow.

WHAT IT MEANS FOR YOU

If you're a buyer

This story is a signal, not a threat. Jesta is targeting developer inventory, not resale units you'd be competing for. If anything, their entry validates the view that 2026 is one of the better buying opportunities in years — prices are soft, competition is low, and deals are being made. The caveat: if you have a pre-construction unit closing soon, get a mortgage broker who knows what's currently selling in your building. Appraisals are coming in below purchase prices. Don't assume yours won't.

If you're a seller (or developer)

For individual condo sellers, this is largely background noise — Jesta isn't buying your resale unit. For developers, it's a genuine lifeline. Jesta is actively approaching builders with unsold inventory blocks of 30+ units and offering to close the whole thing at once. That's liquidity in a market that has none. If you're a developer carrying finished product, this is worth a conversation. O'Brien said they're encouraging developers to reach out directly.

If you're a renter

This one's nuanced. More rental supply entering the market is generally good news for tenants — more choice, less upward pressure on rents. Jesta's pricing of ~$2,125/month for a 500 sq ft downtown unit is competitive for new construction. The longer-term concern some analysts raise: bulk institutional ownership of residential stock consolidates landlord power. But right now, with vacancy tight and new supply stalled, 1,000 new rental units hitting the downtown core isn't a bad thing for renters.

The bottom line

Jesta is making a counter-cyclical bet — buying distressed inventory cheap today, banking on a supply shortage tomorrow. Whether you're a buyer, seller, or renter, the underlying signal is the same: Toronto's condo market is at an inflection point, and smart money is starting to move. The question isn't whether things will recover. It's whether you're positioned for it.