The company solidifies its foothold in Edmonton
Firm Capital Property Trust has announced the closing of its previously announced acquisitions in Alberta.
The transaction involved 128 units in two multi-residential buildings located in Edmonton, valued at approximately $25 million excluding transaction costs. This was financed with a new $17 million mortgage with a Canadian chartered bank for an interest rate of approximately 2.5%, under a five-year term and a 30-year amortization.
The Class A property, which has a robust 98% occupancy rate, is situated in the Summerside neighbourhood in South Edmonton.
“Summerside is a highly sought-after neighbourhood which features several schools, medical clinics, religious centres, gyms, daycares, and a variety of popular amenities,” Firm Capital said.
Read more: Firm Capital reports large-scale acquisitions in two provinces
Per the terms of the acquisition, Firm Capital owns 70%, while the remaining 30% will be held by private clients affiliated with certain members of the Trust’s senior management and board of trustees “in a side-by-side alignment of interest structure.”
“The Trust funded its equity requirement through existing cash resources, including credit facilities,” Firm Capital said. “The Edmonton property is expected to be immediately accretive to AFFO.”
