Northview Apartment REIT announced it has agreed to acquire a 1,250-unit portfolio from independent third-party vendors and affiliates of Starlight Group Property Holdings Inc. for an aggregate purchase price of $196.8 million, with a weighted average capitalization rate of 4.4%.

In addition, Northview has agreed to sell a 216-unit non-core asset located in Kitchener, ON, for $37.7 million. Following these transactions, which are expected to close in early December 2017, Northview’s multifamily portfolio will increase to over 25,000 units.

“These transactions represent continued progress to our 2017 strategic priorities supporting the strategic capital redeployment and non-core asset sales,” commented Todd Cook, President and CEO. “These high-quality assets are located in strong markets with an average occupancy level of 97.5%. It will further improve the overall geographic diversification and quality of our portfolio with a meaningful increase in the Ontario portfolio. This transaction also increases strong organic growth opportunities for our proven high-end renovation program.”

In total, Northview is buying 10 properties in four provinces, several of which were operated by Timbercreek Communities. The properties include:

• 2837 Yonge Street in Toronto, the Metropolitan Apartments, 67 units;
• 320-342 Avenue Road in Toronto, 109 units;
• 2920 Fairlea Crescent in Ottawa, 113 units;
• 340 Colborne Street in London, 132 units;
• 204 Hespeler Road in Cambridge, 146 units;
• 24-28 Helen Avenue in Brantford, 284 units;
• 939-959 Boulevard de la Cote Vertu in Saint Laurent, Que., 89 units;
• 105 Milton Street in Montreal, 112 units;
• 7840 Lochside Drive in Saanichton, B.C., 126 units;
• 9-54 Paige Plaza in Lower Sackville, N.S., 72 units.

“The acquisition is expected to be leverage neutral following future non-core asset sales,” Cook concluded. In an extremely competitive market landscape, these off-market transactions demonstrate the benefits of Northview’s strategic relationship with Starlight and our continued focus on driving sustainable value creation for Unitholders.”

Funding for the purchases will be through $121.9 million of insured mortgage debt, the issuance of $52 million in shares to the vendors and $22.9 million in cash funded by its existing credit facilities and proceeds from the Kitchener sale.