ROCKVILLE, MD–A Canadian REIT, Morguard North American Residential Real Estate Investment Trust, based in Mississauga, Ontario, has closed on Fenestra Apartments at Rockville Town Square in Rockville, Md., for $129 million. It announced the pending acquisition earlier this year, along with the news that it had waived conditions on the 492-unit, multi-building, six-story apartment community.
CIM Group is the seller.
Fenestra Apartments is a 492-unit, three-asset complex that includes street retail. Morguard financed the transaction with a $70.95 million loan that has a fixed term of 10 years and an interest rate of 3.55%.
Last month the REIT also acquired a newly built, mid-rise apartment building in Falls Church, Va., for $43 million. The 104-unit property, Northgate at Falls Church, also has 32,000 square feet of retail and amenity space. The property delivered in 2014 and is subject to a long-term land lease, with a fixed price land purchase option available in 12.25 years.
Morguard REIT has a portfolio of Canadian apartment communities, numbering about 16, but the majority of its holdings is in the US. All told it has some 29 apartments ranging from low-rise, mid-rise and garden-style in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina and Virginia. It comes to a total of close to 13,000 units.
The acquisition of Fenestra Apartments “supports our long-term strategy of investing in high-quality North American multi-suite residential assets that improve the quality of the cash flow while maximizing long-term investment returns for investors,” K. Rai Sahi, CEO of Morguard, says in a prepared statement.
ROCKVILLE, MD–A Canadian REIT, Morguard North American Residential Real Estate Investment Trust, based in Mississauga, Ontario, has closed on Fenestra Apartments at Rockville Town Square in Rockville, Md., for $129 million. It announced the pending acquisition earlier this year, along with the news that it had waived conditions on the 492-unit, multi-building, six-story apartment community.
CIM Group is the seller.
Fenestra Apartments is a 492-unit, three-asset complex that includes street retail. Morguard financed the transaction with a $70.95 million loan that has a fixed term of 10 years and an interest rate of 3.55%.
Last month the REIT also acquired a newly built, mid-rise apartment building in Falls Church, Va., for $43 million. The 104-unit property, Northgate at Falls Church, also has 32,000 square feet of retail and amenity space. The property delivered in 2014 and is subject to a long-term land lease, with a fixed price land purchase option available in 12.25 years.
Morguard REIT has a portfolio of Canadian apartment communities, numbering about 16, but the majority of its holdings is in the US. All told it has some 29 apartments ranging from low-rise, mid-rise and garden-style in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina and
The acquisition of Fenestra Apartments “supports our long-term strategy of investing in high-quality North American multi-suite residential assets that improve the quality of the cash flow while maximizing long-term investment returns for investors,” K. Rai Sahi, CEO of Morguard, says in a prepared statement.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
