Urbanfund has completed the acquisition of 10 per cent of a 1,870 unit multi-family residential portfolio located in Quebec City and Montreal.

The total purchase price was $7,197,498. The average “going in” capitalization rate of this transaction is estimated at 6.4 per cent. Most of the properties included in the transaction have existing mortgages at competitive market rates. Of the 1,870 units, 312 are located in Montreal, with the remainder in Quebec City.

The remaining 90 per cent of the multi-family residential portfolio continues to be owned by Westdale Construction Co. Ltd.

Urbanfund has entered into a joint venture agreement with Westdale with regard to their respective interests in the property portfolio. Property management will be performed by La Corporation Headway Ltee, which is owned by Urbanfund (10 per cent) and Westdale (90 per cent).

Satisfaction of the purchase price will be through a combination of $4 million cash and $3,197,498 vendor take-back mortgage at 4.5 per cent.