Morguard North American Residential Real Estate Investment Trust (REIT) has completed the purchase of six multi-unit residential properties from an institutional fund sponsored by Pearlmark Real Estate Partners for $218 million US (excluding closing costs).

The acquisition was previously announced Jan. 9, 2013.

“These investments are strategic to the REIT’s ongoing success of acquiring institutional quality assets resulting in dependable income for unit holders,” says Rai Sahi, CEO of Morguard. “We are on a clear path to execute our U.S. growth strategy in 2013.”

The six properties acquired are residential apartment and townhome complexes comprised of 1,793 suites located in Denver, Colo., Tampa, Fla., Cary, N.C., and Atlanta, Ga. The properties are best-in-class lowrise, enclave assets with structured and surface parking, modern leasing centres and amenity packages, with a weighted average age from construction of 11 years.

In connection with the purchase of four of the six acquired properties, the REIT assumed in-place mortgage financing of $81.8 million US (weighted average interest rate of 4.86 per cent with a weighted average term to maturity of 4.6 years). For the remaining two properties, the REIT (at closing) entered into first mortgage financing arrangements in an aggregate amount of $57.7 million US (weighted average interest rate of 3.51 per cent) for terms of 10 years.

The REIT is expected to complete the acquisition of an additional six multi-unit residential assets, from Pearlmark, by the end of May 2013. With the closing of the initial six properties from Pearlmark, the REIT owns interests in 9,201 suites in Canada and the U.S., valued at approximately $1.2 billion. After closing of the final portion of the Pearlmark acquisition, the REIT will own interests in 11,160 units in Canada and the U.S., valued at approximately $1.4 billion.