InterRent purchases $24M Burlington property

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An Ottawa-based real estate investment trust is continuing a streak of acquisitions with the purchase of a $24-million residential property in Burlington, Ont.

InterRent REIT (TSX:IIP.UN) said it has entered into an agreement to acquire a 127-suite high-rise apartment building overlooking Lake Ontario. The property, located on Lakeshore Road in Burlington, consists of one, two and three-bedroom suites.

The acquisition is expect to be completed by mid-April at a purchase price of $23.92 million, which represents a cap rate – a common commercial real estate metric used to measure return – of 5.2 per cent.

Adding to other Burlington properties in InterRent’s portfolio, the Lakeshore building is set to become a marquis asset for the REIT when renovations have been completed within the next two years, according to the trust. Those renovations include the addition of further amenities, upgrading the suites on turnover, landscaping, utility savings measures as well as upgrading and branding common areas, according to a press release.

The acquisition will be financed through a conventional first mortgage during renovations.

Other recent acquisitions by InterRent include the purchase of 118 homes in Gloucester for $15.65 million as well as a St. Catherines building for $6 million earlier this month and two properties in the Crystal Beach area in Ottawa’s west end for $18.35 million in February.

In its most recent quarterly results published last month, InterRent grew its profits by nearly 442 per cent because of higher average rent charged at its properties and lower expenses.