A joint partnership between two Ontario-based investment firms will acquire 15 rental housing properties in Vancouver for a combined $292.5 million.
The deals were announced today, with InterRent Real Estate Investment Trust and Crestpoint Real Estate Investments each owning 50% of their newly acquired portfolio of 614 rental homes.
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Ten of these properties totalling 411 residential units are owned by Vancouver-based Hollyburn Properties, which listed the properties for sale on CBRE last fall. The remaining units are being acquired from five unnamed parties.
A release states InterRent will manage the properties, and the acquisitions will be financed by a combination of cash and new short-term debt of about $190 million. The acquisitions are slated to close before the end of this month.
This portfolio provides newcomer InterRent with critical mass in Metro Vancouver, where rental housing demand is exceptionally strong.
In Vancouver, the average vacancy rate over the last five years has been at or below 1.1%. Vacancies remain relatively high even during the COVID-19 pandemic.
“We are thrilled to enter the Vancouver market, with scale, through the acquisition of this institutional-quality portfolio that is extremely well-located. The Vancouver rental market continues to exhibit strong, sustainable market fundamentals, with exposure to a growing tech sector,” said Mike McGahan, CEO of InterRent, in a statement.
“We look forward to enhancing these properties with our best-in-class management platform, customer service and community-focused approach. This is a market we have targeted for a long time. We are very pleased to partner with a best-in-class team like Crestpoint for this portfolio.”
The release emphasized the forecast of continued strong rental housing demand from Vancouver’s expanding tech sector growth and the region’s “outsized proportionate share of immigration,” especially from the impact of the federal government’s updated ambitious immigration targets for 2021 and 2022.
Six of the properties are located in the West End, and several locations are in Marpole and Kitsilano. Most of the properties are older and carry future redevelopment potential.
Here are the properties under the acquisition:
- 1885 Barclay Street, West End (Hollyburn)
- 41 units, concrete
- 1924 Barclay Street, West End (Hollyburn)
- 42 units, concrete
- 1580 Haro Street, West End (Hollyburn)
- 61 units, concrete
- 855 Jervis Street, West End (Hollyburn)
- 48 units, concrete
- 1270 Nicola Street, West End (Hollyburn)
- 37 units, concrete
- 1461 Harwood Street, West End (Hollyburn)
- 38 units, concrete
- 1326 West 13th Avenue, South Granville (Hollyburn)
- 30 units, concrete
- 1355 West 14th Avenue, South Granville (Hollyburn)
- 28 units, concrete
- 2280 West 6th Avenue, Kitsilano
- 43 units, wood frame
- 2040 York Avenue, Kitsilano
- 54 units, wood frame
- 4640 West 10th Avenue, West Point Grey (Hollyburn)
- 14 units, concrete
- 8675 French Street, Marpole (Hollyburn)
- 72 units, concrete/wood frame
- 8740 Cartier Street, Marpole
- 35 units, wood frame
- 8790 Cartier Street, Marpole
- 35 units, wood frame
- 1373 West 73rd Avenue, Marpole
- 36 units, wood frame