- What Capreit has closed the acquisition of three residential properties and signed a deal to purchase another
- Why The acquisitions are part of the REIT’s strategy to upgrade its apartment portfolio
- What next A $39.7m deal for a 102-unit property is expected to close next year
Canadian Apartment Properties REIT purchased three apartment properties in November and has one deal more in the works.
The Toronto-based company bought B&C apartments and Dominik apartments, at 1255 Rue De Bullion and 1255 Saint-Dominique in Montréal, for $104.3m. The properties have a total of 253 units, and the price works out to $412,000/unit. The seller was developer Mondev.
The deal was partly funded through the assumption of $63.6m of mortgage debt, which bears interest at 2.2% per year for two years.
The REIT has also agreed to buy the 102-unit GLO 2 apartments, at 1050 René-Lévesque Est, for $39.7m, or $389,000/unit. As part of the deal, Capreit would assume a $22.9m mortgage, bearing interest at 2.8% per year for two and a half years.
The deal, also with Mondev, is expected to close in the first quarter of 2025.
In Toronto, Capreit closed on the purchase of the 61-unit Strada apartments, at 555 College Street, for $48m, or $787,000/unit. The firm assumed $29.7m of mortgage debt, carrying a 4.3% interest rate for eight and a half years.
The deals are part of Capreit’s strategy to upgrade its Canadian apartment portfolio through the sale of noncore properties and using the proceeds to acquire new assets.
