Rare Acquisition Opportunity in the Calgary Rental Market | RENX

Two properties totaling 608 units in the South Central Calgary market (image courtesy: VCM Branding Inc.)

Colliers is pleased to present the opportunity to acquire The Pinnacle and Wyldewood Estates (the “Portfolio”); a collection of two high profile multi-residential properties, owned and managed by institutions, located in Calgary, Alberta, Canada.

The portfolio offers a total of 608 rental suites, including a 278-suite concrete high-rise building and a 330-suite concrete garden-style property. The two major complementary assets create a dominant presence in South Calgary’s rental market and together The Pinnacle and Wyldewood Estates represent Calgary’s largest multi-residential (concrete) offering in nearly 20 years.

The Pinnacle and Wyldewood estates are located in south central Calgary and straddle both sides of Macleod Trail, Calgary’s main north-south commercial thoroughfare. The locations are in desirable and established neighborhoods characterized by single-family and multi-family residential development. Wyldewood Estates’ mix of garden-style suites and grand suites lend itself favorably to the area’s family-style demographics, while The Pinnacle’s sophisticated high-rise nature attracts a more affluent clientele.

Each property offers immediate access to retail, commercial, dining and shopping offerings along Macleod Trail, including a short drive to CF Chinook and Southcentre malls and walking distance to the Real Canadian Superstore . Access to the city center is a short drive directly north on Macleod Trail or via the Southland LRT station located 300 meters from The Pinnacle and 600 meters from Wyldewood Estates.

Investment Highlights

Prime Assets

– The portfolio represents the largest supply of (100% concrete) apartments in Calgary in nearly 20 years, providing critical mass and immediate scale.

– The two complementary assets straddle Macleod Trail, creating a dominant presence in South Calgary’s sought-after and established rental market.

Quality and construction of the portfolio

– Offering stunning views of the Rocky Mountains, The Pinnacle is Calgary’s tallest suburban multi-residential rental tower with a valuable underground parking feature.

– At approximately 14.9 acres, Wydlewood Estates represents the largest single multi-residential rental site along the Macleod Trail corridor.

– The portfolio is owned and managed by institutions with many recent upgrades to common areas and suites.

Substantial revenue growth potential

– The two properties each have an excellent operating history with an opportunity for substantial growth in rental income in the short term.

– With current low vacancy rates and a rapidly tightening rental market, current rental rates are well below “market levels”.

– Additional revenue growth is achievable through the continuation of a suite renovation program for each property.

Solid market fundamentals

– Calgary is expected to lead the country in key metrics driving multi-residential real estate: GDP growth, employment growth, CPI, population growth and net immigration.

– Alberta is expected to be the only major province forecasting a budget surplus in 2022 with significant surplus potential.

– The Calgary multi-residential market is currently offering attractive relative valuations and is poised to benefit from the robust economic recovery.

The Pinnacle

Rising 27 stories, The Pinnacle is currently Calgary’s tallest suburban multi-residential rental tower offering tenants unobstructed views of the Rocky Mountains, downtown and the Bow River Valley. Built in 1981, the concrete tower sits on 1.17 acres and includes 278 rental suites and a (rare) secure and heated underground parking lot with 294 spaces.

The Pinnacle offers an attractive mix of 2-single suites, 111 one-bedroom suites and 165 two-bedroom suites, including 6 penthouse units. Net leasable area totals 242,388 square feet, which translates to a generous average area of ​​872 square feet. Each unit offers spacious outdoor balconies, fully equipped kitchens with dishwashers, full bathrooms and in-suite laundry facilities. The property includes a rental office and security room and tenant amenities including The Pinnacle Club social room, patio and barbecue area, fully equipped fitness center, mail room, meeting rooms, storage for rent, bicycle storage and a designated guest suite for short-term tenants. guest visits.

The Pinnacle has recently undergone major upgrades including upgrades to the building, common areas, amenity space and suites, with a total of 217 suites (78%) having undergone upgrades.

Wyldewood Estates

At approximately 14.9 acres, Wyldewood Estates occupies the largest purpose-built rental site along the Macleod Trail corridor and offers an attractive garden-style rental development. Built in 1968, the building comprises a set of 11 three-storey rental buildings each containing 30 apartments as well as a total of 402 surface parking spaces.

Wyldewood Estates caters well to its rental demographics by offering a desirable suite mix of 1 one-bedroom, 254 two-bedroom, and 75 three-bedroom units. Net leasable area totals 334,400 square feet, which translates to one of the largest suite sizes in the submarket, averaging 1,013 square feet. Each suite offers an outdoor balcony or patio, a fully equipped kitchen with dishwasher, a full bathroom, and a common laundry room serving each floor of each building. The property includes a rental office, tenant lounge, and fully equipped fitness center in a spacious park-like setting that includes a gazebo and playground.

Wyldewood Estates has recently undertaken extensive improvements including upgrades to the building, common area, grounds, amenity space and suite. Over the past five years, a total of 139 apartments (42%) have undergone major renovations, including new flooring, as well as kitchen and bathroom upgrades.

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