Prestigious Properties Sells 108 Unit Multifamily Property in Abbotsford, BC for $10.3M to Mainstreet Equity Corp

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[{"type":"text","content":"Prestigious Properties Sells 108 Unit Multifamily Property in Abbotsford, BC for $10.3M to Mainstreet Equity Corp(via Thenewswire.ca)\n \n \nCANMORE, AB / TNW-ACCESSWIRE / May 20th, 2014 - Prestigious Properties has completed the sale of its 108 unit apartment building complex in Abbotsford, BC to Mainstreet Equity Corp. (\"Mainstreet\") (TSX: MEQ) of Calgary, AB for $10.3M. The property was acquired in 2009 from Transglobe for $8.5M. \n\n\n \n\"This transaction strengthens our balance sheet and allows us to focus and expand our portfolio in Alberta,\" stated President Thomas Beyer. \"We identified Alberta as a market with significant long-term upside potential long ago and it has since become our core focus. The economic fundamentals have played out well over a decade and a half, with 43,000 people moving to Alberta last year just from other provinces, not even counting international migrants. This surge in inter-provincial migration is the biggest in 23 years and bumped Alberta's population up by almost 3%; lowered vacancy rates to approximately 1% in major cities, and resulted in significantly higher rents with no end in sight.\" \n\n\n \n\"We look forward to continuing to create value for our investors by positioning them well in this wave of economic growth while optimizing asset performance through re-focusing.\"\n\n\n \n Scotty Grubb, Senior VP Business Development Prestigious Properties, adds: \"Echo-boomer demand, in-migration, tightening credit requirements, and higher down payments translates into stronger demand for rental accommodation, lower vacancies and ultimately results in higher rents. We can currently buy apartment buildings for far less than replacement cost, with relatively predictable rental growth and very inexpensive financing. With all the ingredients for a long-term boom in place, we are expanding our proven buy, upgrade and cash-flow model in our core market, which is larger Alberta urban centers where the majority of our Canadian assets are located.\"\n\n\n\n \n\n\n\nClick Image To View Full Size\n\n \n\nBob Dhillon, CEO of Mainstreet states that \"This was a smooth close and allows us to accumulate in one of our core holding areas, namely Abbotsford, BC and generate investor returns with operational efficiencies, super low mortgages and rental upside. We are also bullish on small- to medium sized ap...

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