InterRent Real Estate Investment Trust and Crestpoint Real Estate Investments Ltd., both of Toronto, have acquired 15 rental properties in Metro Vancouver for $292.5 million in what may be the 2021 multi-family deal of the year.
Under the arrangements, InterRent and Crestpoint will each own a 50 per cent interest in the acquisition portfolio. InterRent will manage the portfolio and collect industry standard fees. The acquisition will be financed with a combination of cash and new short-term debt of approximately $190.1 million, according to a release.
The acquisition, announced January 11, is expected to close on January 28, 2021.
The portfolio consists of 15 properties, from six vendors, comprising of 614 residential suites. Nine of the properties are concrete mid-rise apartments and six of the properties are wood frame apartments.
Based on addresses provided, most of the properties were owned by Hollyburn Properties, which listed a 10-building Vancouver portfolio in 2020 in a bid process stick handled by CBRE of Vancouver, which acted as the broker for the entire acqisitiion.
"I can confirm the CBRE National Apartment Group is the broker on record for all 15 properties. Due to confidentiality I can not make any comments or provide any further statements at this time," said Lance Coulson, executive vice-president of CBRE's National Apartment Group in Vancouver.
The acquired buildings are located in Vancouver’s West End, Point Grey, Kitsilano and Marpole neighbourhoods.
To put this $292.5 million deal in perspective, it represents more than 40 per cent of the total multi-family sales volume through the first three quarters of 2020 across all of Metro Vancouver.
InterRent’s stated strategy is to expand its portfolio primarily “to attain the critical mass necessary to implement an efficient portfolio management structure and offer opportunities for accretive acquisitions,”, according to the company.
“We are thrilled to enter the Vancouver market, with scale, through the acquisition of this institutional-quality portfolio that is extremely well-located. The Vancouver rental market continues to exhibit strong, sustainable market fundamentals, with exposure to a growing tech sector, “said Mike McGahan, CEO of InterRent.
“The multifamily space has been an area of interest for Crestpoint and to enter this sector for the first time through a well-diversified portfolio in one of the most sought-after cities in the world is a tremendous opportunity,” said Kevin Leon, president and founder of Crestpoint.
Leon added that the Vancouver acquisition should provide “a springboard to accumulate numerous properties in the multifamily sector, across Canada.”
