InterRent REIT buying Ottawa, St. Catherines properties for $21.64M

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An Ottawa-based real estate investment trust has announced its second local acquisition this week, saying Friday that it is buying 118 townhomes in Gloucester for $15.65 million.

InterRent REIT said the properties are located at 1901-1917 Ogilvie Rd. and 1910-1922 Elmridge Dr. The purchase price reflects a capitalization rate - a commonly used real estate metric used to gauge an investor’s return - of 5.7 per cent.

Also on Friday, InterRent said it is buying a 64-suite building in St. Catherines, Ont., for  $5.99 million with a going in capitalization rate of six per cent.

Both purchases are expected to close by the end of March.

InterRent said short-term financing will be put in place for the newly acquired properties during a “repositioning” program. Once complete, the properties will be financed through long-term Canada Mortgage and Housing Corp. insured mortgages.

Earlier this week, InterRent purchased two residential properties in the Crystal Beach neighbourhood of Ottawa.