Crestpoint is teaming up with Ottawa-based InterRent REIT on two apartment buildings north of Toronto, a move that includes land for potential housing in a market with rising rents.
CoStar News can report that property records indicate the 18- and 22-storey buildings at 2 and 4 Hanover Road in Brampton, Ontario, sold for $185.5 million in a deal that closed March 27 but was announced late Friday by Crestpoint.
For Toronto-based Crestpoint, the deals bring the company to almost $9.9 billion in assets under management and 36.5 million square feet. Officials with the company did not immediately return a request to comment from CoStar News.
The 605 units at the site, a mix of one-, two- and three-bedroom suites, are currently about 97% occupied.
Vestor Inc. and Crestpoint, on behalf of the Crestpoint Core Plus Real Estate Strategy, an open-ended fund, have a 90% stake in the property. Vestcor Corp., which owns Vestcor Inc., is an independent private, not-for-profit holding company under the Vestcor Act of the New Brunswick Legislature. The organization is jointly owned by the New Brunswick Public Service Pension Plan and the New Brunswick Teachers Pension Plan.
InterRent REIT purchased the remaining 10% of the property and will provide property management services.
The deal "puts us in a great position to contribute to potential new supply in a constrained market,” said Brad Cutsey, InterRent president and chief executive, in a statement.
The 10-acre site can also support the development of about 400 units in the future, Crestpoint said in the statement. The REIT retains an option to increase its ownership to one-third within the first two years after closing.
InterRent first teamed up with Crespoint in 2021 for its entrance into the Vancouver market with a $292.5 million deal.
The latest purchase comes with average rents across the country close to $2,000 after a brief respite in February.
The average asking rent for all property types in Canada rose 9.7% in February from a year ago, to $1,984, according to Rentals.ca and Urbanation in a report issued last month. Rents decreased 0.6% from January, the third consecutive monthly decline.
This story was corrected on April 12 to reflect the purchase price was $185.5 million.