Killam Apartment REIT (TSX: KMP.UN) has completed the $29.6 million acquisition of Forrest Green Apartments, a 13-storey, 109-suite apartment building located in the Clayton Park section of Halifax, Nova Scotia.
Forrest Green was constructed in 1973 and is comprised of large suites units – two-thirds of the apartments are three-bedroom, 1,400 square foot suites, and the remaining one-third are two-bedroom, 1,150 square foot suites. The average in-place monthly rent is $1,860.
The going-in capitalization rate on the purchase is 5.0%, and Killam anticipates placing a new Canadian Mortgage and Housing Corporation-insured mortgage on the property.
“This acquisition represents a strong addition to our Halifax portfolio and aligns directly with our long-term strategy for growth in our core markets. The large suites and affordable in-place rents position us well to meet the strong demand for this product,” noted Philip Fraser, president and CEO of Halifax-headquartered Killam. “This is a well-located property that has been well-maintained and which offers additional opportunities to reduce operating costs through energy-efficiency upgrades. With these enhancements, we see potential to strengthen the asset’s performance within our portfolio.”
