Chartwell Retirement Residences has entered into a definitive agreement to acquire The Grenadier Retirement Residence in Toronto, Ontario.
The Grenadier occupies an entire city block at 2100 Bloor Street West, directly across from Toronto’s High Park and adjacent to the popular Bloor West Village. The property consists of 257 retirement suites in four towers and 66,880 square feet of commercial space. Currently, the retirement suites are 84 per cent occupied and the commercial space is 100 per cent occupied. The complex was built in 1985 and has recently undergone significant upgrades to common areas and suites.
The purchase price before transaction costs is $85 million and will be settled in cash. The closing of the transaction, subject to normal closing conditions, is expected on August 1, 2015. Chartwell estimates the blended stabilized capitalization rate to be 7.1 per cent.
“We are pleased to add this premier residence to our portfolio and will rebrand it as Chartwell Grenadier Retirement Residence. We believe that this complex has a lot of potential given its excellent location and strong reputation in the community and we are confident that it will provide a growing contribution to our earnings,” commented Brent Binions, Chartwell’s President and CEO. “We welcome The Grenadier’s residents and staff to the Chartwell family.”