NexLiving Communities has announced its second significant acquisition during December, acquiring a two-property portfolio in Saint John, N.B., comprising 149 units plus future development land, for $34.3 million.
The Halifax-based firm (NXLV-X), which focuses on acquiring and operating multiresidential properties for the emerging 55-plus age sector, announced the pending purchase of two other properties comprising 150 apartments in Moncton earlier this month for $39.6 million.
The Saint John properties are at 50 Calabria St, and 5 Woodhollow Park.
The Calabria site features a newly constructed, four-storey luxury building with 82 apartments located in the east end of Saint John near the city's prime shopping district. This building has two elevators as well as underground and surface parking for residents.
Amenities include three fitness areas, a community room, walking trails, pickleball and basketball courts among others.
All units have a balcony, in-suite laundry, multi-zone air-conditioning and smart home features (including a resident's app, valet entrance, keyless entry technology, facial recognition entry, smart home water heater and EV charging stations).
Development land, acquisition financing
The property includes a separate parcel of land that is approved for future development of up to 85 additional units.
5 Woodhollow Park is also a four-storey building, with 67 suites, located in eastern Saint John with close proximity to transit and local amenities.
The building was constructed in two phases in 2013 and 2015 and is equipped with an elevator, one- and two-bedroom suites featuring walk-out patios, in-suite laundry and surface parking.
Including the land parcel, the blended capitalization rate is 4.75 per cent, NexLiving said in the announcement.
It will finance the acquisition with a combination of cash on hand and $25.7 million of mortgages with a weighted average interest rate of 3.06 per cent and a weighted average term to maturity of 3.5 years.
Northpoint Management acquisition
Earlier in December, NexLiving announced an agreement to wholly acquire Northpoint Management Inc. from Sheaco Holdings Inc. for $39.6 million.
Northpoint's main assets are two newly built multiresidential buildings comprising 75 units each located at 2251 Mountain Rd. and 2261 Mountain Rd. in Moncton.
NexLiving already had an agreement to acquire the properties, but amended the deal to include the full acquisition of Northpoint.
NexLiving plans to fund the purchase price via: the issuance of 37.5 million common shares at $0.20 per share (valued at $7.5 million); $2.5 million in cash; plus a $29.6 million CMHC-insured mortgage.
Subject to its diligence and various required approvals, it expects to close the transaction by the end of Q1 2023.
NexLiving would own 1,166 suites after all the transactions close.
NexLiving’s focus is to acquire recently built or refurbished, highly leased multiresidential properties in bedroom communities in Atlantic Canada. It is also active in Ontario.
For its recently acquired properties in Ontario, the company plans to undertake a targeted value-add capital program to modernize and reposition the large one- and two-bedroom suites.
NexLiving has also developed a robust pipeline of qualified properties for potential acquisition.
The company expects to continue building its portfolio by acquiring 500-plus additional suites during the next year, with a focus on secondary markets across Canada.