Retirement residence provider adds three properties to its portfolio
Chartwell Retirement Residences, a real estate investment trust (REIT) focused on senior housing, has agreed to buy three retirement residences on Vancouver Island for $226.9 million.
The three properties include the Vista Retirement Residence in Victoria, the Nanaimo Memory Care facility, and The Edgewater Retirement Residence, which is currently under construction in Nanaimo. Together, these residences will add 384 suites to Chartwell’s growing portfolio of senior living communities.
This acquisition will expand Chartwell's presence in the Vancouver Island market, where demand for senior housing continues to grow. The company plans to fund these purchases through a combination of cash on hand, proceeds from the sale of non-core assets, and existing credit facilities.
"These acquisitions of high quality, newly developed residences will positively contribute to the overall quality of Chartwell's portfolio and expand our presence in the strong British Columbia market," Chartwell chief investment officer Jonathan Boulakia said in a media release. “These transactions will create meaningful scale on Vancouver Island, which provides operating and management synergies.”
The Vista Retirement Residence, an upscale facility located in the Victoria suburb of Esquimalt, was completed in 2023 and offers a range of care options, from independent living to memory care. With 152 suites, the Vista is a modern, well-appointed facility, although it is currently only 28% occupied. Chartwell has agreed to acquire the Vista for $103.9 million, with a portion of the price held in escrow as part of a 24-month Net Operating Income (NOI) guarantee from the seller.
In Nanaimo, Chartwell is purchasing the Nanaimo Memory Care facility, which provides specialized care for seniors with memory-related conditions. Built in 2018, this residence features 77 suites and is currently 88% occupied. The purchase price for this property is $20.3 million.
The third property, The Edgewater Retirement Residence, is still under construction and will be acquired by Chartwell once it is completed in the second quarter of 2025. Located next to the Nanaimo Memory Care facility, The Edgewater will offer 155 suites for independent supportive living. The agreed purchase price for The Edgewater is $102.7 million, with a portion held in escrow under a 36-month NOI guarantee.
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Boulakia added that the quality of these properties, combined with their prime locations, positions Chartwell to benefit from long-term occupancy and market growth.
“We are pleased to acquire these properties in Canada's retirement destination below current replacement cost,” he said.
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