Halifax-based Killam Properties (TSX: KMP) has acquired two apartment buildings in Vanier.
The residential landlord says it paid $12.5 million for the 75-unit building at 50 Selkirk Street and the adjacent 61-unit building at 350 Mayfield Avenue. That puts the purchase price at $92,000 per unit.
The average rent in the buildings is $723 per month but the company says it plans to conduct capital upgrades that lead to higher rents.
While Killam says it paid cash for the two buildings, it now plans to take out a $7.8-million mortgage on the properties.
The company’s president and CEO Philip Fraser says the acquisitions will contribute to the company’s growth in the Ottawa market and increase the number of local rental units it holds to 628.