InterRent REIT announced that it has entered into an unconditional agreement to acquire two properties, totaling 123 suites, within the city of Burlington, Ontario.
The two properties, which are being acquired from the same vendor, consist of a 57-unit mid-rise building located at 455 Maple Avenue, and a 66-unit townhouse complex located at 1259-1275 Brant Street. The acquisition is expected to be completed by the middle of December at a purchase price of $21,000,000 and with a capitalization rate of 4.1 per cent.
455 Maple Avenue rests on a large downtown lot and has recently undergone capital upgrades, including balcony restoration, new windows and parking lot paving. The building offers scenic views of Lake Ontario and is just steps away from the Waterfront Trail along the lake. Located in a desirable residential neighbourhood and one block away from Joseph Brant Hospital, the property is surrounded by parks, schools, shopping, and restaurants. There is convenient access to public transportation, the QEW and the Burlington Skyway Bridge.
1259-1275 Brant Street contains various-sized townhomes that have been well maintained and have private backyards. The large 3.8 acre site is ideally located on Brant Street with direct access to the region’s main highways including highway’s 403, 407 and the Queen Elizabeth Way. The property is located in a predominantly residential neighbourhood and within close proximity of several big-box retailers, restaurants and services including Costco, Sobeys, Best Buy, SilverCity Burlington Cinemas and Milestones.
InterRent views this as an opportunity to acquire two properties well maintained properties in a strong market. The REIT believes that further unit-holder value will be created once the property is repositioned to InterRent’s standards. The properties also increase synergies with InterRent’s current Burlington portfolio.
“Burlington is a market that the REIT has targeted for growth and we look forward to rolling out InterRent’s repositioning program at these properties in order to realize their full potential and create value for our Unitholders,” said Mike McGahan, CEO.
