REIT Bets $102M on Windsor’s Multifamily Skyline

Primecorp Commercial Realty Inc. (CNW Group/PRIMECORP COMMERCIAL REALTY INC.)

By Adriana Pop, Associate Editor

Ontario, Canada – In an approximately $102 million ($136.2 million CAD) deal, Skyline Apartment REIT has finalized the acquisition of a 23-property, 1,685-unit multifamily portfolio in Windsor and Tecumseh, Ontario.

The privately held Guelph, ON-based company purchased the properties from Calgary-based Boardwalk REIT, the largest public residential landlord in Canada.

The transaction, which marks the largest multifamily sale in the history of Windsor, was brokered by The Primecorp Group of Companies. The brokerage firm’s National Multi-Residential Investment Sales Group led by Aik Aliferis and Sam Firestone completed the deal.

The assets consist of a mix of high-rise and low-rise apartment buildings and townhouses, featuring 1,685 residential rental units and six commercial units.

Many of the buildings offer excellent opportunities for value enhancing capital improvements and green initiatives which are expected to improve the overall building quality and portfolio income levels over time. Furthermore, Windsor’s economy is expected to grow by two per cent this year, while employment is expected to rise three per cent, thanks in part to the recovering auto industry and the falling Canadian dollar, which benefits manufacturers.

“I believe the market will continue to be strong in the apartment sector for many years to come.  The stability ‎of the Multi-res sector will provide the safe and consistent investment sought after by both domestic and international investors. This Windsor transaction is a perfect example of this type of strong opportunity” Sam Firestone, COO & managing partner, Primecorp, said.

According to Primecorp’s CFO Nick Pantieras, the area’s high demand in the multifamily sector coupled with an undersupply of available properties makes it difficult for investors to grow their portfolios.

“This strategic sale is an example of the complex transactions that we are able to efficiently execute to create long term value for our clients,” added Pantieras.

Founded in 2006, the Skyline Apartment REIT seeks income-producing residential properties in Ontario’s secondary and tertiary markets, where supply is essentially fixed due to the high cost of building apartments.

In Windsor, the company now owns 26 multifamily properties, plus three in Tecumseh, with a total of 2,209 apartment suites. On a national level, the entity controls about 14,134 apartment units and is paying out a 7.4 per cent distribution rate to its unit-holders.

The REIT is fully-managed and operated by the Skyline Group of Companies, which also manages several commercial and retail assets in Windsor, within its Skyline Commercial REIT and Skyline Retail REIT private portfolios, including an 111,000 square foot retail plaza at 4115 Walker Road. Across Canada, the Skyline Group currently manages nearly $1.5 billion ($2 billion CAD) in real estate assets within its three private REIT portfolios, with over 250 properties and 5.5 million square feet of commercial space.

Photo credits: Skyline Apartment REIT