Nofada Immobilier has made the biggest acquisition in its 10-year history, purchasing the 214-unit Tours Chapdelaine in Quebec City from Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) for $35 million.

The company specializes in acquiring value-add multifamily residential in the Greater Montreal and Quebec City areas, president Julien Simard told RENX.

Nofada now has about 500 units that it either owns in full or in private partnerships.

Located at 2200-2220 Chapdelaine in the Sainte-Foy neighbourhood, Tours Chapdelaine features two 12-storey concrete buildings. 

“It’s really good quality, good condition property that was well-maintained by its former owner,” Simard said.

An added plus is its “exceptional” location, about a 15-minute walk from Laval University. Other academic institutions are nearby as well, Simard noted. As a result, tenants are primarily students and the building’s units are fully leased.

History of the Tours Chapdelaine

About 20 per cent of units are studios, 60 per cent are one bedroom and 20 per cent are two bedrooms.

Built in 1972, the Tours Chapdelaine were purchased by CAPREIT in 2006 for $10 million. It’s selling price of $35 million 18 years later “is the market price,” Simard said. 

The property was evaluated at $20.4 million by the City of Quebec in its last property evaluation, conducted in July 2020.

Nofada acquired Tours Chapdelaine in a bidding process handled by Avison Young.

The complex has two commercial spaces, one of which houses a hairdresser, while the other is vacant. The commercial space, formerly a convenience store, may be converted into a fitness centre for residents, Simard said, as the property currently has no such amenities.

Nofada also aims to modernize other common areas and improve WiFi and the energy efficiency in the buildings.

CAPREIT still owns eight apartment buildings in the Quebec City area.

Nofada's recent acquisitions

Tours Chapdelaine is Nofada’s second acquisition from CAPREIT. Last year, it acquired the nine-storey, concrete, 73-unit Le Victoria at 1620 Victoria Ave. in Greenfield Park on the South Shore from the trust.

Nofada has been steadily making acquisitions over the past couple of years.

Eight months ago, Nofada acquired 5830-5840 Place Decelles, in Montreal’s Cote des Neiges borough. The 40-unit property is near the Jewish General and Ste. Justine hospitals as well as the private Collège Jean de Brebeuf and the HEC business school.

Two years ago, the company purchased 12 multi-residential buildings containing 72 units in the Lebourgneuf sector of Quebec City. The buildings offer superior construction quality and excellent value-add potential, Nofada said.

Founded in 2014, Nofada specializes in the acquisition, optimization and management of multi-residential properties primarily in Montreal and the city’s South Shore and Quebec City.

Seeking new opportunities

Along with his real estate career, Simard owns Biscuiterie Oscar, a longtime family-owned candy and sweets shop on Ontario St. in Montreal’s Hochelaga Maisonneuve district.

Nofada seeks out quality buildings which “have to have good bones,” and is in full growth mode for residential properties. 

“We’re always looking for other opportunities,” Simard said. “We don’t know if we’ll be successful, but the goal is to continue to make acquisitions. We’re not ready to stop.”

The sweet spot for acquisitions is 50 units or more. “Everything we can buy, we’ll buy,” he said.

Simard said Nofada manages its own buildings. It is planning long-term ownership of its properties and “there’s no exit” strategy. The company has no plans to develop its own buildings, preferring to grow via acquisitions.

Although Nofada has looked at opportunities outside the Montreal and Quebec City areas, “ideally, we’ve got to concentrate on markets where we already are.”

However, if the company obtains enough scale to support acquisitions outside the province’s two major cities and is comfortable in doing so, it will go ahead: “We’re not closed to anything.” 

Simard added that Nofada is “pretty low profile,” and notes that “with what’s happening with renovictions and things like that, our goal isn’t to remove (tenants).”