InterRent buys Montreal, Hamilton apartment buildings

InterRent Real Estate Investment Trust (IIP.UN-T) will spend $65 million to buy two neighbouring high-rise apartment buildings in Montreal and a mid-rise apartment complex in Hamilton. 

InterRent REIT logo.“We are extremely pleased to announce these two acquisitions,” InterRent CEO Mike McGahan said in a release announcing the purchases. “In Montreal, one of the REIT’s core growth markets, this property is amongst the best locations, right in the heart of downtown.

“These buildings are well-situated within a highly desirable demographic node that will increase our visibility and branding opportunities within the Montreal market.

“Additionally, InterRent has made another acquisition in the Hamilton area, a market that has shown consistent success for the REIT.”

Montreal apartment acquisitions

The Montreal properties are located at 2121 and 2255 rue Saint Mathieu, in the historic borough of Ville-Marie and the vibrant neighbourhood of Shaughnessy Village in the heart of the downtown. Both are within 200 metres of the Guy-Concordia Metro Station, giving residents easy transit access.

In addition to also having Concordia and McGill Universities  close by, the surrounding area features amenities which include shopping, restaurants, parks, entertainment, colleges and more.

Additionally, the proximity to Montreal’s business core attracts business professionals to the affluent neighbourhood.

2121 rue Saint Mathieu is a 23-storey building, while 2255 rue Saint Mathieu consists of 13 storeys. Together they contain 249 suites and offer a wide variety of amenities including roof-top terraces, indoor penthouse-level pool, sauna and on-site laundry facilities. The buildings also offer views of Mont-Royal.

The two Montreal properties are being purchased for $53,753,725 or $215,878 per suite. The purchase is to close in mid-September.

Hamilton property expands portfolio

Additionally, InterRent said it has completed an agreement to purchase a 74-suite, mid-rise apartment at 3 East 37th Street in Hamilton.

The building is situated in the Mountain Area on the edge of the Niagara Escarpment, overlooking the city and Lake Ontario. The 1.2-acre property is located in the residential neighbourhood of Raleigh, a 10-minute drive from downtown Hamilton.

The building is located a block from Concession Street, which features shopping, restaurants, public transportation and entertainment. Additionally, the property is less than a kilometre from the Juravinski Hospital and Cancer Center and directly adjacent to Mountain Drive Park.

The property was purchased for $11,250,000 or $152,027 per suite. The sale was completed on Aug, 28 and financed in part with the assumption of an existing CMHC mortgage totalling $3,250,000.

The addition of 3 East 37th Street complements InterRent’s existing property at 775 Concession Street (108 suites), which is only 400 metres away.

“We look forward to capitalizing on the operational efficiencies created due to its proximity to our existing property on Concession Street, and the continued growth in the market in order (to) realize the full value of this property for our Unitholders,” said McGahan.

Bullish on Hamilton market

InterRent is bullish on Hamilton, which it says has seen a sharp increase in rental market fundamentals over the past two years. Expansion of GO Train service, which connects Hamilton to Toronto and other GTA cities, has also been a factor.

During the past two years, InterRent has acquired 1,026 suites in Hamilton.

Last month, InterRent announced it is partnering with Trinity Developments and PBC Real Estate Advisors Inc.  on a multi-use “transformational development” in downtown Ottawa.

InterRent paid $14.2 million for its share of the approximately 3.6-acre site at 900 Albert St. Each of the partners holds a one-third interest in the development. 

The site is approved for up to three towers with the initial concept design to potentially include 1,000 multi-family residential suites as well as retail and office space.

It will be situated at the link between the two major lines of Ottawa’s Light Rail Transit system, the Confederation Line (the east/west line, for which Phase I is currently under construction) and the Trillium Line (the north/south link to be built as Phase II).

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