Boardwalk REIT (BEI-UN-T) has acquired two multiresidential properties, in Canmore, Alta., and Brampton in the Greater Toronto Area, adding 300 rentals to its portfolio for a combined price of $117.5 million.
The announcement was made Tuesday in a brief operational update from the Calgary-based trust, which also reported increased rental traffic in March.
Boardwalk acquired Peak Estates at 1451 Palliser Trail in Canmore, which consists of three class-A, four-storey multiresidential buildings which were built in 2018.
The property totals 148 units and features large unit sizes, modern finishes and six in-suite appliances. The acquisition compliments Boardwalk’s existing Elk Valley Estates and Mountainview Estates communities in the nearby Town of Banff and increases the its portfolio in the region to over 300 rental units.
Ardglen Place, Boardwalk in Brampton
Ardglen Place is located at 51 to 67 Ardglen Dr. in Brampton, comprises 152 townhouse units and offers what Boardwalk says is “significant value-add potential.”
The property features large unit sizes and offers residents low-density housing in the rapidly growing Peel Region, just north of Toronto.
The community establishes an operational foothold in the area for Boardwalk ahead of the completion of Tower 1 of the trust’s $215-million 45 Railroad redevelopment in Brampton.
The mixed-use project, which is expected to come online in Q4 2022, is being built at the site of the former Dominion Skate Building, a heritage site which has been incorporated into the design.
The 25- and 27-storey tower development will contain 365 units ranging from 600 to 1,600 square feet when it is complete. There is also a townhome component to the site.
The buildings will also contain about 10,700 square feet of retail space.
More leasing activity
On the leasing front, Boardwalk reported a slight uptick in occupancy across its portfolio as of April 1, up to 95.8 per cent from 95.4 per cent a month earlier.
“After a slower January and first two weeks of February, we have seen a strong increase in rental traffic in March with higher occupancy and lower availability as we head into the strong spring leasing season,” said Boardwalk CEO and chairman Sam Kolias in the release.
Year-over-year, occupied rents have increased slightly from $1,189 in February 2021 to $1,206 in February 2022.
Inflation, however, is driving up costs.
“Our team is committed to further optimize our rentals and occupancy while finding innovative ways to best manage controllable operating costs during a high inflation period,” he said.
“We are anticipating some higher non-controllable costs in the first quarter, such as utilities, due to a combination of colder weather in the trust’s Western markets, an increase in residents being in their homes during the onset of the Omicron variant and utility cost inflation driven by energy shortages.”
Boardwalk will release its Q1 2022 financial results on May 9.
The trust was established in 1984 and as of Dec. 31, 2021 it owned more than 200 properties, with over 33,000 residential units totalling over 28 million net rentable square feet.