The transaction involved more than a hundred units in several multi-residential buildings
Firm Capital Property Trust has confirmed the closing of its previously announced acquisition of units in several multi-residential buildings in Nova Scotia.
Valued at approximately $18 million, the transaction covered 132 units in three multi-residential buildings located in the Lower Sackville community of NS.
The purchase value was around $136,300 per unit, or $113 per square foot. The acquisition was financed with a new $13.7 million mortgage with a chartered bank at an interest rate of approximately 2.4%, a five-year term, and a 30-year amortization.
Read more: Firm Capital reports large-scale acquisitions in two provinces
With a robust occupancy rate of 98% or higher since 2018, “the Lower Sackville Property is located in proximity to downtown Halifax and is conveniently located to schools, public transportation, shopping, restaurants, and entertainment,” Firm Capital said.
“The Trust acquired the Lower Sackville Property such that the Trust owns 70% and private clients affiliated with certain members of senior management and the board of trustees of the Trust owning the remaining 30% in a side-by-side alignment of interest structure,” the company added.
“The Trust funded its equity requirement through existing cash resources, including credit facilities. The Lower Sackville Property is expected to be immediately accretive to AFFO.”
