Killam Properties acquires $7.2-million apartment building
Killam Properties Inc. has acquired Meadowland Manor, a 105-unit apartment building in St. John’s, Newfoundland. This marks the completion of $115.1 million in apartment acquisitions in 2010, in-line with the company’s goal of completing between $100 million and $150 million in acquisitions during the year.
Meadowland Manor is located at 107 Bay Bulls Road, approximately six kilometers southwest from the downtown core, and is currently 99 per cent occupied. The purchase price of $7.15 million ($68,100 per suite) was satisfied with cash and the acquisition capitalization rate was approximately seven per cent. Management expects to place a Canada Mortgage and Housing Corporation (CMHC) insured mortgage on the property during the first quarter of 2011.
Killam’s St. John’s portfolio now totals 689 units, representing 19.7 per cent of the city’s private apartment units, as measured by CMHC. “This acquisition completes Killam’s 2010 acquisition program,” said Philip Fraser, Killam’s President and CEO. “We have added eight new properties to our apartment portfolio this year, including new buildings in London and Cambridge, Ontario, and established buildings in our core markets of Halifax, Moncton and St. John’s.”