APARTMENT BUILDING/RENTAL PROPERTY INVESTMENT
Calgary, Alberta
Area Description: Calgary, AB is rated at the top investment city in Canada by REIN (Real Estate Investment Network), with a population of 1,230,248 in 2009, raising its rank from 5th to 4th-largest CMA in Canada. It is the heart of the province, and continues to grow beyond its reputation as the centre of the oil & gas industry. Between 2004-2008 strong long-term growth fundamentals and a labour shortage propelled real estate prices beyond what we considered reasonable if we expected high-yielding short to medium term investments. Greatly improved real estate market fundamentals have put Calgary back on our purchasing radar in 2010.
Building Description: Castleview Park Apartments consists of four low rise apartment buildings totalling 120 units and spread over 3.73 acres. The buildings were constructed in 1981. Floorplans average 646 sq. ft for one bedroom units and 824 sq.ft for two bedrooms. Exterior siding and rock facing improvements were completed in 2002. Built as a condo building with dishwasher and laundry hookups in each unit.
The Opportunity/Upside: Current rents below market. 1 bedroom units currently rented for approximately $850/month and 2 bedroom units rented for approximately $1050/month. 1 bedroom rents could be increased to $940/month and 2 bedroom rents could be increased to $1075/month.
ROI Analysis: Click image below to enlarge.
Property Locator Map:
