Ottawa-based InterRent Real Estate Investment Trust (REIT) announced this week it will acquire a three-building apartment complex near Algonquin College in a $55.7-million deal.
“We feel strongly about this Ottawa rental node,” said CEO of InterRent Mike McGahan, adding the area would be improved thanks to “the long-term benefits the future LRT at Algonquin College will bring.”
The Parkway Pak apartment complex spans 17.2 acres and is only 600 metres from the bus station at Algonquin college. The location is currently slated to become the southernmost LRT station. The introduction of rail transit to the area will also provide easier access to the City of Ottawa offices, Ontario Provincial Court offices, College Square shopping centre, and Centrepoint Theatre for non-residents.
The purchase works out to $133,253 per suite with a going in cap rate of 5.3%. The purchase is scheduled to close in May and will be financed through a conventional first mortgage.
"This is an exciting opportunity for the REIT as we continue to grow and add scale in one of our core markets. We are also extremely pleased with ... new repositioning opportunities within our core markets, for continued long term growth and value for our unitholders," Mr. McGahan said.