Canadian JV to Pay $293M for Vancouver Portfolio
- Jan 12, 2021
A partnership of InterRent Real Estate Investment Trust and Crestpoint Real Estate Investments will acquire 15 multifamily properties in Vancouver for $292.5 million, the companies announced. The communities will be purchased from six different sellers, none of which were disclosed by the real estate firms.
The purchase will be financed with a combination of cash and new short-term debt of $190.1 million. Ottawa-based InterRent and Toronto-based Crestpoint will each own a 50 percent interest in the apartment portfolio once the deal closes, which is expected to be later this month. InterRent will serve as property manager for the 15 apartment buildings.
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The multifamily communities are located in Vancouver neighborhoods with high walkability and within close proximity of downtown Vancouver and public transit. The neighborhoods include the West End, South Granville, Kitsilano, West Point Grey and Marpole.
InterRent CEO Mike McGahan said in prepared remarks that the Vancouver rental market is one that the company has targeted for a long time. According to McGahan, the expanding tech sector and robust population growth in the city have led to an average vacancy rate at or below 1.1 percent over the past five years.
The acquisition marks the first foray into the multifamily space for Crestpoint, a company that has been active in the commercial sector in Canada in recent years. Back in 2018, the firm partnered with Crown Realty Partners to purchase a 416,603-square-foot office development in downtown Toronto for $129 million. The deal was the second purchase made by the joint venture, following a similar office purchase two year prior.
One of Canada’s biggest investment firms, QuadReal Property Group, acquired a 50 percent interest in its U.S. partner CA Ventures’ $4 billion student housing business in October of last year. The $1.6 billion commitment converted the firm’s existing entity-level investments into an ownership stake in CA Student Living, the student housing operating company.