- What Hazelview has sold Capilano Tower in Edmonton
- Why Federico Berloni of Ferrovia Capital is the buyer
- What next Below-market rents provide upside potential
Investor Federico Berloni has bought his second Edmonton property in two months, this time paying Hazelview Investments $18.8m for a high-rise, Green Street News can reveal.
The $194,000/unit sale price for Capilano Tower will generate a roughly 5% initial annual yield. Marcus & Millichap’s IPA division sold the building for Toronto-based Hazelview, a major investor nationally. CMHC’s MLI Select helped finance the deal, which closed on Tuesday.
It’s unclear whether Berloni bought the building for himself, or via Ferrovia Capital, the Montréal-based firm where he serves as president. In late May, Berloni/Ferrovia purchased Brintnell Landing from Skyline Apartment REIT for $35m, and the firm has been active in recent years in Western Canada.
The 15-storey Capilano Tower property, which totals 89,000 sq ft of net rentable area, has one-, two- and three-bedroom suites. It was built in 1973 and has seen some $5m in upgrades in the past six years, according to marketing materials. Despite the work, in-place rents are below market, so Berloni likely will look to boost those as units roll over.
The building, at 6205 101 Avenue NW, is 5km east of downtown Edmonton and 2km south of the North Saskatchewan River. The sales pitch touted proximity to major roads connecting to the Edmonton River Valley.
The sale of Capilano Tower continues a busy stretch for Edmonton apartment sales. Year to date, nine transactions worth a combined $393m have sold, according to Green Street’s Sales Comps Database.
