- What Norgate Apartments has traded for $197.5m
- Why A trio of investors has bought the property from KingSett and Starlight
- What next Average rents are well below market rates, providing significant upside
An investor group has paid $197.5m for Norgate Apartments in Montréal, marking the largest multi-residential deal in Québec so far this year, Green Street News can reveal.
KingSett Capital and Starlight Investments sold the 1,108-unit property, in the St-Laurent borough, to Frederic Aubry, Jean-Philippe Claude and William Lande for roughly $178,000/unit. The price translates to a 5% capitalization rate. JLL brokered the deal, which closed on Dec. 3.
The buyers received $140.8m of CMCH-insured debt. The loan, which bears interest at 3.9% and has a 45-year amortization schedule, expires in March 2034.
Built in the 1950s, the 20-acre property comprises 74 buildings at 1200-1595 Décarie Street and 1205-1595 Ouimet Street.
Norgate has 651 two-bedroom apartments, 306 one-bedroom units, 148 three-bedroom apartments and three studio apartments. The average unit size is 788 sq ft. Average rent of $1,006 is 62% below market rates, providing the opportunity to boost net operating income as units turn over.
There are 198 surface parking spaces and 115 underground stalls.
The property is adjacent to the Galeries Norgate shopping centre and is less than a kilometre from Les Galeries St-Laurent.
