Business
Mainstreet announces a 26% portfolio growth (YTD), and increases its presence in Vancouver's Lower Mainland with the strategic acquisition of 288 multi-family residential units
Mainstreet announces a 26% portfolio growth (YTD), and increases its presence in Vancouver's Lower Mainland with the strategic acquisition of 288 multi-family residential units.
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\n\nCALGARY, May 2 /CNW/ - Continuing its strategy of consolidating the \nmid-market rental apartment sector in select Canadian markets, Mainstreet\nEquity Corp. (TSX: MEQ) is pleased to announce the acquisition of 288\nresidential rental units in Surrey, BC. This strategic acquisition increases\nMainstreet's holdings in Vancouver's Lower Mainland to 594 rental residential\nunits. Mainstreet now owns 3,433 apartment units across Canada in the key\ntarget markets of Vancouver Lower Mainland, Calgary, Edmonton, Red Deer and\nToronto.\nThe apartment building acquired known as Pacific Park Apartments, is\nlocated at 9450, 9460, 9470, 9480 - 128 Street, Surrey, BC. This building was\npreviously targeted by Mainstreet and is located directly across from an\nexisting Mainstreet asset and augments the Company's clustering strategy. This\nconcentration of ownership enables Mainstreet to maintain its objective of\ncontinually improving economies of scale in operating and leasing its\nportfolio.\nWith this acquisition, Mainstreet will own 3 complexes with 594 rental\nunits in Vancouver's Lower Mainland. The total purchase price of $17,070,000\n($59,270 per unit) was satisfied by new first mortgage debt of approximately\n$13,736,000, at a floating interest rate for an 18 month term. The balance was\npaid in cash. The going-in cap rate on this acquisition was approximately\n8.0%.\nThis complex contains a very favourable suite mix of 8 bachelor units,\n150 one-bedroom units, 117 two-bedroom units and 13 three-bedroom units. In\naddition, 46 of the existing units offer amenities such as an ensuite\nfireplace. The average in-place rent for this complex is approximately\n$630/unit/month and based on a survey of comparable market rents, the average\nmonthly rent in this area is approximately $730.\nBob Dhillon, Mainstreet's President and Chief Executive Officer noted \"We\nare very pleased with the purchase of Pacific Park Apartments. This was an\nasset we had previously targeted and due to its proximity to our existing\nSurrey assets will provide synergies in management, advertising, landscaping,\nand maintenance. In addition, the property has 9.2 acres of land, which offers\ngood upside potential. The rental market in Surrey is very unique due to the\nlimited supply of rental apartments, and the economy in this region remains\nstrong. We ...