Real estate joint ventures usually pair money with expertise: one partner brings capital, the other builds. The partnership Stafford and DBS Developments announced this month is different. Both are developers, they own the projects 50-50, and each brings a different operating skill.[1]
The two projects
Together, the projects would add 744 rental units in Toronto:[1]
- 11–21 Johnston Avenue, Yonge and Sheppard. A 48-storey, 524-unit tower designed by Turner Fleischer, on a site assembled from former single-family lots about 130 metres from Sheppard-Yonge station. The partners are in the late stages of municipal approval and expect to start construction within a year.
- 429 Walmer Road, South Forest Hill. A 27-storey building with more than 220 suites, designed by BDP Quadrangle, with a nine-storey podium and terraces. It has Committee of Adjustment approval and is seeking site plan approval. Demolition of the former retirement home on the site is about to start, with completion expected in spring or summer 2030.
Stafford originated both projects. Ownership is split evenly.[1]
Why the pairing works
Stafford president Jonathan Goldman said his company mostly handles construction, and that DBS brings expertise in rental design, property management and related areas. The two work on regulatory and financing matters together.[1]
DBS CEO Bryan Levy described the fit from the other side. DBS normally uses a third-party construction manager, so having an equity partner with construction capability was ideal. Once DBS completes a building, it stays on and manages it.[1]
That points to a few advantages of this kind of structure:
- Aligned construction risk. When the builder is also a 50% owner, cost overruns and delays hit its own equity, not just a client's.
- Operator input from the start. A partner that will run the building for years has a strong interest in getting unit layouts, amenities and building systems right during design.
- Shared equity load. Splitting ownership spreads the equity needed across two balance sheets, which matters when lenders and government programs expect significant equity in rental construction.
A focus on larger units
The Walmer Road building stands out for its unit mix. It will have no studios. A significant share of suites will be two-bedroom-plus-den or three-bedroom, and some will be larger than 1,500 square feet.[1] The partners say family-sized rentals are increasingly hard to find in the area.[1]
That choice matches what the rent data has shown this year. In July, Rentals.ca reported that three-bedroom purpose-built rents were essentially flat from a year earlier, while studio condo rents fell 9.6%.[2] Larger units have held their value better in a soft market, and new supply of them has been limited.
DBS also has a track record nearby. Its 177-suite rental at 215 Lonsdale Road, 2Fifteen, is now stabilized at 95% occupancy, and Levy said its lease-up taught the company a lot about the local market.[1]
Different locations, different bets
The two sites target different renters. Johnston Avenue is a transit-oriented, high-density location near two subway lines, Highway 401 and the shops and services around Mel Lastman Square. Goldman described the area as underserved for purpose-built rental.[1] Walmer Road is in prestigious South Forest Hill, within walking distance of Forest Hill Village and close to St. Clair West station and the St. Clair streetcar.[1]
Running both through one partnership spreads location risk while using the same complementary skills.
What the structure doesn't solve
A well-matched partnership doesn't remove the main risks of Toronto rental development. The Johnston Avenue tower still needs final municipal approval, and Walmer Road still needs site plan approval.[1] Walmer Road's expected completion in 2030 means the partners are committing to a building that will lease into a market several years from now, with rents, rates and costs that can't be known today. Even 50-50 partnerships also need clear rules for decisions where the partners disagree, especially if market conditions change midway through construction.
What it shows about the market
Stafford's recent work nearby has been condominiums: it developed condo towers at 500 and 530 St. Clair Avenue West with partners, and a 186-unit condo at 181 Sheppard Avenue East with Greybrook.[1] A condo-focused builder teaming up with a rental operator to build rentals in the same neighbourhoods reflects where Toronto development economics have moved.
For investors watching the sector, partnerships like this suggest a model for getting rental built in a market where no one firm wants to carry all the risk: split ownership, divide responsibilities by skill, and design for the renters most in short supply.
Sources
[1] Stafford and DBS launch partnership for 744 rental units in Toronto, RENX (Oct. 9, 2026): https://renx.ca/stafford-and-dbs-are-partnering-on-two-toronto-apartment-developments
[2] National Rent Declines Slow as Toronto Shows Signs of Turnaround as Supply Tightens, Rentals.ca and Urbanation (Aug. 6, 2026): https://press.rentals.ca/467345-national-rent-declines-slow-as-toronto-shows-signs-of-turnaround-as-supply-tightens