Killam Apartment REIT recently acquired two new properties in Edmonton and Moncton for a combined total of $41 million, continuing its ongoing expansion into new markets.
The Link is an eight-storey, newly-constructed concrete apartment building located in the growing southwest portion of Edmonton. Comprised of 105 units, the building features 163 underground parking stalls and a large rooftop patio. The average unit size is 830 square feet and features condo-quality finishes. Now in its initial lease-up phase, it is currently 88 per cent occupied. The acquisition cost for The Link was $31.5 million ($300,000 per unit), bringing Killam’s Edmonton portfolio up to 579 rental units.
Valued at $9.5 million, 145 Canaan Drive in Moncton is a new four-storey, wood-frame apartment building featuring 48 units with high-quality finishes and 38 underground parking stalls. This property is well-located and shares a parking lot with Killam’s existing 155 Canaan apartment building. The property is currently 100 per cent occupied. This acquisition increases Killam’s Moncton portfolio to 1,804 rental units.
“We are pleased to grow our apartment portfolios in Edmonton and Moncton,” said Philip Fraser, President and CEO. “The acquisition of The Link builds on our base of high-quality, newly-constructed assets in the Edmonton market and the Moncton asset is a strong complement to our portfolio in the growing Dieppe market. We have an active acquisition pipeline and continue to seek opportunities to accretively grow our portfolio across Canada.”
Both acquisitions were funded with cash-on-hand from Killam’s recent equity offering. Killam completed $186.2 million in acquisitions year-to-date, achieving its 2019 targets to grow the portfolio to over $3.0 billion, with a minimum acquisition target of $100 million.