110 rental units acquired via portfolio sale by Headwater Projects of Vancouver

Large 110-unit transaction shows sustained investor appetite for Victoria's rental apartment buildings.

0
51

Headwater Projects, a Vancouver based multi-family investment group has recently acquired four multifamily rental apartment buildings in core locations in James Bay & near CFB Esquimalt. This recent addition brings Headwater’s holdings in Victoria to eight apartment buildings.

The latest acquisition which closed October 31, 2019 was an off-market brokered transaction of a portfolio previously held by a private investor based in Victoria.

Address:Purchase PriceUnitsLot Size (sqft)
430 Michigan St$9,743,0004428,241
850 Rupert Terrace$5,873,0002414,115
646 Admirals Road$4,394,0002325,000
639 Constance Ave$3,435,5001915,480
TOTAL:$23,445,50011082,836

The acquisition price of $23,445,500 amounted to an attractive average price per unit of $209,500. This is far below the average in marketplace of $275,200 as per the VictoriaMarket multifamily report.

The company mentioned the following transaction highlights in a news release

  • Significant scale and sizeable transaction – over 70,000 of net rentable square feet in four properties;
  • Ideally situated – irreplaceable locations within in Victoria and Esquimalt;
  • Opportunity for future re-development in three of the properties with high density zoning under the current OCP.

Financing for the acquisition was provided by an interest only loan from Timbercreek Financial of Toronto, Ontario. The principal loan amount of $21,000,000 amounted to nearly 90% LTV with a rate of 5.75%.

Headwater Project’s began its entry to Victoria in early 2016. Prior to this transaction on October 31, 2019 it acquired the following properties: 2626 Cook Street, 1009 Fairfield Road, 575 Vancouver Street, 1255 Grant Street. View our previous post about the Fairfield acquisition.

If you’re an investor considering the purchase and sale of apartment buildings, view the VictoriaMarket Multifamily Report and schedule a call with our expert managing broker for a discreet and free evaluation. Knowledge is power in Victoria’s real estate market.

Leave a Reply