Register   |  Login

Largest apartment complex sale in Canadian history - Tenant satisfaction key to deal

Email  
 
 
LONDON, ON, March 3 /CNW/ - ESAM Construction sold Cherryhill Village in London, Ontario to the Minto Group Inc. for $215 million, in the largest sale of an apartment complex in one location in Canadian history. Brokered by Derek Lobo of Burlington-based Rock Advisors Inc., this blockbuster deal included 2,326 apartment units in 13 buildings, the 150 thousand square foot Cherryhill Village Mall and a 30 thousand square foot office building.

While there was a need to achieve a fair market price for the portfolio, ESAM was also looking for a buyer whose values were aligned with their own. "We found a buyer who will continue on with our values... they get it, they understand the community," stated Harvey Katz, Residential Property Manager of ESAM.

 

 

 

High tenant satisfaction has had a positive effect on the bottom line. Mr. Lobo stated, "Tenant turnover rates of 16.5 per cent annually are half those of typical apartment buildings and tenant defaults are one-hundredth of industry norms. I have worked across Canada and in 17 US states and never seen numbers like this before! These figures have helped increase the value of the portfolio and make it more desirable for a long-term owner like Minto."
 
Mr. Lobo went on to say that Minto and ESAM have worked well together to ensure a smooth transition. Martin Tovey, Vice President Acquisitions & Rental Development of the Minto Group remarked that "it was certainly a cooperative two-way street in moving the acquisition forward."

And Minto certainly recognizes Cherryhill's distinct culture. Alan Greenberg, President of Minto Apartments Limited commented that "There is a tremendous community spirit at Cherryhill... something we don't find everywhere. We are certainly going to build upon the work that [ESAM] has done." 

And ESAM is happy to hand over the reigns to Minto. The majority of ESAM staff has been offered positions with Minto and they plan on keeping many of the same programs that ESAM has put in place. Residents can be assured that there will be continuity with the management changeover. Mr. Greenberg stated, "It was one family handing their legacy over to another family."
 
Note:
This was the largest sale of an apartment complex in Canadian history. Please note there have been a couple of portfolio transactions that have been larger (e.g. in 2004, there was the MetCap transaction involving 7,815 units and a total price of ~$715.8 million and in 2008, there was the El Ad deal involving 4,629 units and a total price of $384.6 million) but those were for multiple buildings in multiple locations.

About Rock Advisors:  Rock Advisors Inc. is a Burlington, Ontario-based boutique apartment brokerage firm. With the completion of the Cherryhill transaction, Rock has brokered approximately $430 million in sales in the past 12 months. 

For further information: Derek Lobo at 905-320-7672 or dlobo@rockaptadvisors.ca. Visit www.rockaptadvisors.ca.
:

Add a comment

 < Back     Copyright © Canadian Apartment Magazine. All rights reserved.  



 

MediaEdge Branding
Privacy Policy
);