Alliance REIT has launched a targeted acquisition initiative to expand its portfolio of missing-middle housing across Toronto.

The Toronto-based REIT said the effort will focus on acquiring underutilized properties—such as century-old single-family or mixed-use buildings—and converting them into boutique multi-unit rental housing in high-demand neighbourhoods.

The initiative builds on more than a decade of activity by Alliance, which has converted about 30 properties into hundreds of units and maintains near-full occupancy with a waitlist for new residents, said the REIT.

In a market marked by uncertainty, the REIT said its strategy centres on delivering housing that remains in demand across economic cycles.

“Rather than trying to predict the market, we focus on delivering a product that is in demand in any environment,” said Hooman Tabesh, CEO of Alliance. “We are creating housing at the intersection of location, livability, and scarcity—and that is what drives our long-term performance.”

Toronto continues to face a structural imbalance between strong demand and a limited supply of well-located, attainable rental housing, the REIT said. While much of the industry has focused on high-rise development or single-family housing, Alliance remains focused on the “missing middle”—typically three- to eight-unit buildings integrated into established neighbourhoods.

Through the new initiative, the REIT will target transit-oriented locations and pursue projects that densify existing properties into multi-unit residences aligned with current renter preferences.

Alliance said its vertically integrated platform—covering acquisition, development, and property management—supports consistent execution, design quality, and sustained resident demand.

The REIT also sees current market conditions as favourable for expansion, citing softened asset values, reduced competition, and increased availability of underutilized properties.

“Periods like this tend to create the best opportunities for long-term investors,” added Tabesh. “We’ve spent the past several years strengthening our platform and balance sheet. This initiative is about deploying that strength—and partnering with aligned capital—into a market that is setting up for the next phase of growth.”

As part of the initiative, Alliance is seeking acquisition and partnership opportunities with private property owners, real estate professionals, and potential joint-venture partners.

“Our approach is long-term and relationship-driven,” said Tabesh. “We care deeply about the neighbourhoods we operate in. Every project we undertake is designed to enhance the community and create homes that people genuinely value.”