MISSISSAUGA, ON, Oct. 26, 2017 /CNW/ - Morguard North American
Residential Real Estate Investment Trust (the "REIT") (TSX: MRG.UN)
announced today the completion of a joint venture with Healthcare
of Ontario Pension Plan ("HOOPP") of Coast at Lakeshore East
("Coast"), a 515-suite urban rental high-rise in Chicago's desirable Loop district.
The REIT completed the acquisition of Coast in July 2017 for a purchase price of $287.5 million (US$222.5
million). Under the terms of the agreement, the REIT and
HOOPP will own the property on a 51/49 basis, respectively.
Morguard Management Company, a subsidiary of Morguard Corporation,
will act as property and leasing manager as well as provide
advisory services.
"Coast is a premium multi-suite residential property in a major
U.S. urban market, making it a unique investment opportunity for
the REIT and our partners at HOOPP," said K. Rai Sahi, Chairman and Chief Executive
Officer of the REIT. "The Coast acquisition supports Morguard's
strategic initiative to acquire clusters of premium properties in
key urban markets while allowing our Canadian institutional clients
to diversify their real estate portfolio in the U.S."
Coast is the REIT's second joint venture acquisition with HOOPP
in the U.S. The entities previously partnered on a mid-rise rental
apartment community in Florida.
"We're delighted to continue our partnership with Morguard on
this new investment opportunity," said Richard Varkey, Senior Portfolio Manager at
HOOPP. "This joint venture allows HOOPP to continue to expand our
U.S. portfolio with our first Chicago investment in a well-located,
high-quality real estate asset that will provide stable income and
tangible long-term growth potential."
Coast is a 46-storey Class A property prominently located in the
Lakeshore East master planned community, part of Chicago's famed Loop district. Developed in
2013, Coast offers unencumbered views of the Chicago River, Navy
Pier and Lake Michigan and
best-in-class fundamentals including nine-foot ceilings,
above-average unit sizes and floor-to-ceiling windows. The property
features 18,000 square feet of ground floor retail and a focus on
green living: the LEED Silver building offers a smoke-free
environment, world-class fitness centre, heated outdoor pool and
access to the Chicago Pedway.
"Coast's condo-quality amenities, recent construction and
prominent location in the hub of downtown Chicago make the property an excellent
addition to our portfolio of high-quality North American
multi-suite residential assets," added Sahi. "New-build luxury
apartments in the Loop district are in high demand from an upscale
demographic, making Coast an excellent long-term investment
opportunity."
Coast is Morguard's third strategic investment in and around
Chicago's vibrant Loop
neighbourhood. Morguard Corporation (TSX: MRC), the REIT's sponsor,
has ownership in two other premium high-rise apartment properties
in downtown Chicago: Alta at K
Station and Marquee at Block 37.
Visit the Coast at Lakeshore website: www.rentcoast.com.
About Morguard North American Residential
REIT
The REIT is an unincorporated, open-ended real estate investment
trust established under and governed by the laws of the Province of
Ontario. The Units of the REIT
trade on the Toronto Stock Exchange under the ticker symbol MRG.UN.
With a strategic focus on the acquisition of high-quality
multi-suite residential properties in Canada and the
United States, the REIT maximizes long-term Unit value
through active asset and property management. Its portfolio
consists of 13,314 residential suites (as of October 31, 2017) located in Alberta, Ontario, Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North
Carolina, Virginia and
Maryland with an appraised value
of approximately $2.6 billion at
September 30, 2017.
For more information, please visit www.morguard.com or follow us
on LinkedIn.
SOURCE Morguard North American Residential Real Estate
Investment Trust