CALGARY, May 2 /CNW/ - Continuing its strategy of consolidating the mid-market rental apartment sector in select Canadian markets, Mainstreet Equity Corp. (TSX: MEQ) is pleased to announce the acquisition of 288 residential rental units in Surrey, BC. This strategic acquisition increases Mainstreet's holdings in Vancouver's Lower Mainland to 594 rental residential units. Mainstreet now owns 3,433 apartment units across Canada in the key target markets of Vancouver Lower Mainland, Calgary, Edmonton, Red Deer and Toronto. The apartment building acquired known as Pacific Park Apartments, is located at 9450, 9460, 9470, 9480 - 128 Street, Surrey, BC. This building was previously targeted by Mainstreet and is located directly across from an existing Mainstreet asset and augments the Company's clustering strategy. This concentration of ownership enables Mainstreet to maintain its objective of continually improving economies of scale in operating and leasing its portfolio. With this acquisition, Mainstreet will own 3 complexes with 594 rental units in Vancouver's Lower Mainland. The total purchase price of $17,070,000 ($59,270 per unit) was satisfied by new first mortgage debt of approximately $13,736,000, at a floating interest rate for an 18 month term. The balance was paid in cash. The going-in cap rate on this acquisition was approximately 8.0%. This complex contains a very favourable suite mix of 8 bachelor units, 150 one-bedroom units, 117 two-bedroom units and 13 three-bedroom units. In addition, 46 of the existing units offer amenities such as an ensuite fireplace. The average in-place rent for this complex is approximately $630/unit/month and based on a survey of comparable market rents, the average monthly rent in this area is approximately $730. Bob Dhillon, Mainstreet's President and Chief Executive Officer noted "We are very pleased with the purchase of Pacific Park Apartments. This was an asset we had previously targeted and due to its proximity to our existing Surrey assets will provide synergies in management, advertising, landscaping, and maintenance. In addition, the property has 9.2 acres of land, which offers good upside potential. The rental market in Surrey is very unique due to the limited supply of rental apartments, and the economy in this region remains strong. We continue to have a very active acquisition pipeline and our team expects to close a number of accretive acquisitions over the next few months." Mainstreet is a publicly-traded real estate company focused on the acquisition, redevelopment and management of mid-market multi-family residential rental properties across Canada.