OTTAWA—Minto Apartment Real Estate Investment Trust (REIT) has announced an agreement to provide up to $51.4 million in financing to a subsidiary of Minto Properties Inc. to develop a residential site in Ottawa to be known as Beechwood.
Beechwood comprises approximately one acre of land fronting Beechwood Avenue in New Edinburgh, stated an April 29 release.
Subject to the outcome of final rezoning and site plan approval, Beechwood is expected to be a nine-storey building with approximately 229 rental suites comprising approximately 153,000 square feet and up to three ground floor retail units comprising approximately 6,000 square feet. Construction of Beechwood is expected to begin in early 2022 with stabilization of the project scheduled for late 2024.
Suites are expected to range in size from 463 square foot studios to 1,076 square foot two-bedrooms plus den.
On stabilization of the property, the REIT will have the exclusive option to purchase Beechwood at a five-per-cent discount to its then-appraised fair market value.
“This is the third investment financing transaction that we have entered into with MPI, following the Fifth + Bank project in Ottawa and the Lonsdale Square project in Vancouver,” said Michael Waters, CEO of the REIT, in a statement. “Like those transactions, this one provides the REIT with preferential access to a new, high-quality purpose-built rental property in an attractive urban location.
“The financing structure insulates the REIT from development and construction risks, while we earn an attractive return during the development period.”
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