The property type continues its reign as one of the market’s strongest investment vehicles
A 79-suite apartment complex in downtown Calgary has changed hands for $19.5 million, Canadian Apartment Properties Real Estate Investment Trust announced.
Late last week, CAPREIT acquired The Carrington in the Beltline area through its Acquisition and Operating credit facility.
“We are pleased to be adding this high-quality property to our portfolio in a well-located area of downtown Calgary,” president and CEO Mark Kenney said.
The Carrington, which was built in 1999, boasts of an average area of 970 sq. ft. in its suites. It is situated in close proximity to an elementary school, multiple retail locations, and the city’s Light Rail Transit system.
Apartments continue to reign as the city’s superstar assets, as increased investment in these (as well as in industrial spaces) helped make up for some of the market losses in the weaker office and residential segments, according to an Altus Group analysis.
The apartment sector’s roughly twofold increase and the industrial market’s 24% growth (with a vacancy rate of 7%) were among the positives in an otherwise modest 2019.
On an annual basis, Calgary investment was quieter, posting a 26% decline in overall activity from the first half of 2018.
“Almost all submarkets saw a decline in total new multi-family home sales (combines townhouse and apartment) for the first half of 2019 compared to the same period in 2018, with sales during the first quarter markedly slower than the year before,” Altus stated in its market report.
