- What Mondev has sold three apartment properties
- Why The deals comprise 355 suites
- What next The price works out to a capitalization rate of 4.2%
Mondev has sold a three-property rental portfolio in Montréal’s Ville-Marie neighbourhood to Canadian Apartment Properties REIT at a capitalization rate of 4.2%, Green Street News can reveal.
Capreit closed on the latest building, a 102-suite apartment building known as Glo 2, on April 11 for $39.7m. The first two properties, which together have 253 residential suites, were acquired last November for $104.3m.
The price for all three properties comes to $144m, which works out to roughly $406,000/suite.
The concrete, purpose-built rental properties, constructed from 2016 to 2020, are between René Lévesque Boulevard and Sainte-Catherine Street. They’re within 1.5 km of each other.
Capreit assumed $63.6m of mortgage debt at a 2.2% blended interest rate for the first two properties, with about two years remaining on the term. For the third property, the company assumes $22.9m of debt at 2.8% with approximately two-and-a-half years remaining.
CORRECTION: This article was revised to clarify the closing date on the third property.
