Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) has paid $281 million to acquire six luxury modern, recently constructed apartment buildings in Greater Montréal.
CAPREIT (CAR-UN-T) has also recently acquired two properties in Victoria and Kelowna for $36.7 million.
The Quebec portfolio comprises 516 residential suites including 44 bachelor, 236 one-bedroom, 211 two-bedroom and 25 three-bedroom apartments as well as three commercial units. They are located in the City of Montreal as well as in Laval, Côte Saint-Luc and Saint Hyacinthe.
The properties were constructed between 2017 and 2021.
CAPREIT seeking newer buildings
“This acquisition fits perfectly with our asset allocation strategy to enhance the average age and quality of our portfolio while adding large and well-appointed luxury suites in demand by today’s discerning market,” commented Mark Kenney, CAPREIT president and CEO.
“Additionally, the new energy-efficient heating, air conditioning and lighting systems, low-flow bathroom fixtures, electric vehicle charging stations and resident self-metering all meet our goal of improving our environmental performance and long-term sustainability.”
The acquisitions have been funded by CAPREIT’s acquisition and operating facility and the assumption of $55.5 million in mortgages with a weighted average interest rate of 2.75 per cent and 6.5-year term to maturity.
CAPREIT says the suites range between 687 and 1,056 square feet and include modern designs with open-concept kitchens, quartz countertops, stainless steel appliances and private terraces.
Resident amenities include gyms, outdoor pools terraces and rooftop patios. They are close to shopping, transit, parks, recreational facilities and schools.
There is currently an active lease-up program for these properties
British Columbia acquisitions
On Feb. 25, CAPREIT bought a 24-suite apartment property in Victoria for $7.2 million in cash.
The property is located in the James Bay neighbourhood and is 100 per cent occupied. It is close to downtown Victoria with access to shopping, libraries and local attractions including the Royal BC Museum and the B.C. Parliament House.
Earlier this year, the trust completed the purchase of a six-storey, 59-suite apartment and townhouse property in downtown Kelowna.
Completed in the spring of 2021, it was acquired for $29.5 million, funded by the acquisition and operating facility and a $17.1 million mortgage.
Occupancy was 94.9 per cent at closing, with three townhomes previously used as short-term rentals vacant. CAPREIT planned to rent these suites.
The property consists of 12 two-bedroom townhome units with an average size of 1,094 square feet, 20 one-bedroom apartment suites and 27 two-bedroom suites with an average size of 793 square feet.
Located near the city’s Cultural District, the property is close to schools, grocery stores and transit.
Suite features include air conditioning, hydro sub-metering, quartz countertops, stainless steel appliances, in-suite laundry and nine-foot ceiling heights.
Building amenities include 94 parking stalls, bicycle racks and a large rooftop resident area with a built-in barbecue, fire pit and expansive green space with seating and planter boxes.
CAPREIT owns or has interests in approximately 67,000 residential apartment suites, townhomes and manufactured housing community sites across Canada and the Netherlands with approximately $17 billion of assets under management.