The multifamily sector continues to be one of Canada's strongest asset classes
Firm Capital has announced its $55-million acquisition of a multi-residential building in the Island of Montreal.
The nine-floor, 135-unit condo complex located at Pointe Claire, Quebec was completed this year. The building was purchased for approximately $407,000 per unit, or $360 per square foot.
Firm Capital said that its multi-residential portfolio will account for approximately 18% of asset value, up from 9%.
“The property is a Class A asset located within the Pointe Claire City Centre neighbourhood which features access to public transit, several schools, medical clinics, gyms, daycares and a variety of popular amenities,” Firm Capital said.
The transaction, which will be financed with a new first mortgage along with Firm Capital’s cash resources and credit facilities, is expected to close in Q1 2022.
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Multifamily assets such as condo complexes remain among the most desirable investment vehicles in North America, drawing renewed investment as a “positive sign after a year of uncertainty,” according to a recent report by Colliers Canada.
“Multifamily and industrial [properties] remain the top investment choices by volume,” Colliers said. During the second quarter, this segment saw its volume increase 84% annually with a total of $8.3 billion traded.
“Rent growth and investor interest in multifamily assets remain strong, despite rent freezes and rising vacancy rates during the pandemic,” Colliers said. “These assets are attractive to investors thanks to the stable income they offer, and the positive outlook as immigrants, students, and young professionals return to the rental pool.”
