Two properties totalling 608 units in Calgary’s South Central market (image courtesy: VCM Branding Inc.)

Colliers is pleased to present the opportunity the acquire The Pinnacle and Wyldewood Estates (the “Portfolio”); a collection of two high-profile, institutionally owned and managed multi-residential properties located in Calgary, Alberta, Canada.

The Portfolio offers a total of 608 rental suites that include a 278-suite concrete high-rise building and a 330-suite concrete garden-style property. The two prominent, complimentary assets create a commanding presence in the south Calgary rental market, and together, The Pinnacle and Wyldewood Estates represent Calgary’s single largest (concrete) multi-residential offering in almost 20 years.

The Pinnacle and Wyldewood Estates are located in south central Calgary and straddle either side of Macleod Trail, Calgary’s main north/south commercial thoroughfare. The locations are within desirable and established neighbourhoods characterized by single and multi-family residential development. The garden-style low-rise, suite mix and large suite sizes of Wyldewood Estates lend itself favourably to the area’s family-style demographic while the sophisticated high-rise nature of The Pinnacle attracts a more affluent client base.

Each property offers immediate access to the retail, commercial, dining, and shopping offerings along Macleod Trail including a short drive to CF Chinook Mall and Southcentre Mall and walking distance to the Real Canadian Superstore. Access to downtown is a short drive directly north on Macleod Trail or via the Southland LRT Station located 300 meters from The Pinnacle and 600 metres from Wyldewood Estates.

Investment highlights

High-profile assets

• • The Portfolio represents the largest (100% concrete) apartment offering in Calgary in almost 20 years providing critical mass and immediate scale.
  • The two complementary assets straddle Macleod Trail, creating a commanding presence in the desirable and established south Calgary rental market.

Portfolio quality & construction

• • Offering sweeping views of the Rocky Mountains, The Pinnacle is Calgary’s tallest suburban multi-residential rental tower with a valuable underground parking component.
  • At ~14.9 acres, Wydlewood Estates represents the largest single multi-residential rental site along the Macleod Trail corridor.
  • The Portfolio is institutionally owned and managed with extensive recent common area and suite upgrades.

Substantial revenue growth potential

• • The two properties each have an excellent operating history with an opportunity for substantial rental income growth in the near term.
  • With current low vacancy rates and a rapidly tightening rental market, current rental rates are significantly below “market levels”.
  • Further revenue growth is achievable through the continuation of a suite renovation program for each property.

Robust market fundamentals

• • Calgary is projected to lead the nation in key metrics that drive multi-residential real estate: GDP growth, employment growth, CPI, population growth and net in-migration.
  • Alberta is expected to be the only major province projecting a 2022 budget surplus with significant upside surplus potential.
  • Calgary’s multi-residential market currently offers attractive relative valuations and is poised to benefit from the robust economic resurgence.

The Pinnacle

Rising 27 storeys, The Pinnacle is currently Calgary’s tallest suburban multi-residential rental tower offering tenants sweeping views of the Rocky Mountains, the downtown and over the Bow River valley. Built in 1981, the concrete high-rise property is situated on 1.17 acres and includes 278 rental suites and a (rare) 294 stall secure and heated underground parkade.

The Pinnacle offers an attractive suite mix of 2 bachelors, 111 one-bedroom and 165 two-bedroom suites including 6 penthouse units. The net rentable area totals 242,388 square feet translating into a generous average suite size of 872 square feet. Each unit offers a spacious exterior balcony, fully equipped kitchens with dishwashers, one full bathroom and in-suite laundry. The property includes a rental office and security room and tenant amenities including The Pinnacle Club social room, patio and BBQ, a fully-equipped fitness centre, mailroom, rentable storage rooms, bike rack room, and a designated guest suite for short term tenant-guest visits.

The Pinnacle has undertaken significant recent upgrades including building, common area, amenity space and suite improvements with a total of 217 suites (78%) have undergone upgrades.

Wyldewood Estates

At ~14.9 acres, Wyldewood Estates occupies the largest purpose built rental site along the Macleod Trail corridor and offers an attractive garden-style rental development. Built in 1968, the property includes a collection of 11 three storey rental buildings each containing 30 suites along with a total of 402 surface parking stalls.

Wyldewood Estates caters well to its rental demographic by offering a desirable suite mix of 1 one-bedroom, 254 two-bedroom and 75 three-bedroom units. The net rentable area totals 334,400 square feet translating into amongst the largest suites sizes in the sub-market averaging 1,013 square feet. Each suite offers an exterior balcony or patio, fully equipped kitchens with dishwasher, one full bathroom and common area laundry servicing each floor of each building. The property includes a rental office, tenant lounge, and fully-equipped fitness centre within a spacious park-like setting that includes a gazebo and playground.

Wyldewood Estates has undertaken significant recent upgrades including building, common area, grounds, amenity space and suite improvements. Within the past five years, a total of 139 suites (42%) have undergone substantial renovations including new flooring, kitchen and bathroom upgrades.