Prestigious Properties Closes One of the Largest Edmonton Multi-Family Acquisitions of 2013
CANMORE, AB – October 10, 2013 /CNW/ – In one of the largest Edmonton multi-family transactions of 2013, Prestigious Properties (“Prestigious”) has completed the acquisition of a 71 unit apartment building for $10.65M.
This acquisition will benefit Prestigious’ cash-flow in an expanding portfolio of revenue-generating rental properties and land holdings which now exceeds $100M in assets across 950 units and 300 acres of developable land in Canada and the U.S.
A rising player in the North American rental real estate market, Prestigious Properties has developed a highly successful investment strategy which has drawn an enthusiastic response from over 600 satisfied investors. Company president Thomas Beyer is bullish on the company’s business model and pleased by its surging growth profile.
“In any economy there is a need for reasonably priced, well situated, appropriately renovated & impeccably managed apartments,” Beyer explains Prestigious’ investment philosophy. “Renting is becoming the economic choice of many because owning a house doesn’t mean automatic equity accumulation anymore, renting is usually far cheaper than owning, and because it is far tougher today to get a mortgage than it used to be,” he adds.
“Edmonton is booming; it is one of the top growth and job creating markets not just in Canada, but in the western world. Rents have risen 20-30% in the last two years in Calgary as evidenced by one of our best performing assets located in Calgary. Edmonton usually lags Calgary 12-18 months. As such we expect rents to substantially increase in our Edmonton portfolio, including this acquisition which boasts almost exclusively very spacious two bedroom units.”
In a nutshell, Prestigious Properties buys undervalued apartment buildings in urban markets, such as Edmonton. The company renovates, manages, re-finances and occasionally sells properties while both equity and rents increase over time.
Scotty Grubb, Senior VP Business Development Prestigious Properties, adds: “Echo-boomer demand, in-migration, tightening credit requirements, and higher down payments translates into stronger demand for rental accommodation, lower vacancies and ultimately results in higher rents. We can currently buy apartment buildings for far less than replacement cost, with relatively predictable rental growth and very inexpensive financing. With all the ingredients for a long-term boom in place, we are expanding our proven buy, upgrade and cash-flow model in our core market, which is larger Alberta urban centers where the majority of our Canadian assets are located.”
Troy Barker, Assistant VP Commercial Mortgages, Prairie Region of First National states “We are extremely pleased to provide Prestigious Properties with short-term mortgage financing allowing Prestigious to increase rents, stabilize cash-flow and re-finance in a year with historically low interest rates for improved cash-flow. We have worked with the group for years and are looking forward to working with all buyers of small and large multi-family transactions.”
For more information, please contact:
Prestigious Properties Group
Christine Kopr, Director Business Development
#912, 743 Railway Ave. Canmore, AB T1W 1P2 Canada
T: 403-678-3330 or 1-877-434-4345 Ext:102 F: 403-770-8885