InterRent Real Estate Investment Trust announced that it has entered into an agreement to acquire a multi-family portfolio in Hamilton that will add 618 suites to the REIT.
The property is located in the east end of Hamilton and includes four high rise apartment buildings: 77 Delawana Dr.; 11 & 40 Grandville Ave.; and, 11 Violet Dr. There is a total of 2 bachelors; 104 1- bedroom; 509 2-bedrooms; and, 3 3-bedrooms suites in the portfolio. The property is situated in a predominantly residential area and is within a short walking distance to several parks, schools, and the Eastgate Square shopping mall.
Currently serviced by several bus routes, the property is ideally located in relation to the recently announced extension of the GO Lakeshore West train to a new stop at Centennial Parkway. The provincial government has indicated that they are also speaking with the city of Hamilton to extend the announced Light Rail Transit project so that it would continue past the last stop, currently planned for Queenston Circle, and continue on to the Eastgate Square.
The property is being purchased for a total purchase price of $50,985,000 or $82,500 per unit. The acquisition will be financed through a conventional first mortgage while the property undergoes a significant re-positioning program in order to reduce utility and long-term operating costs, increase occupancy and achieve the market rents that the REIT has been able to capture at its other properties in Hamilton. The acquisition is expected to close on or before November 30, 2015.
With this acquisition, InterRent has purchased 1,577 suites in 2015 for a total purchase price of $167,395,000, or $106,148 per door. All of the acquisitions in 2015 have been in line with the REIT’s stated strategy of expanding within InterRent’s core markets of Ottawa, the Greater Montreal Area and the Greater Toronto Area.
“We believe the Hamilton market is well positioned for excellent growth and this portfolio is located in a strong rental node. This acquisition is a strong addition to the REIT’s value creation strategy. With our experience in the Hamilton market and the team we have assembled in this region, we believe that our repositioning program for this property will create value for our Unitholders, similar to what we are experiencing with our previous Hamilton acquisitions,” said Mike McGahan, CEO.