In a year that promises to be challenging for real estate investors, those ready to deploy capital must be ready to move fast to seize the opportunity in the market. The multifamily market remains a strong asset class for investors’ capital. Institutional players such as REITs are still active in the multifamily market and continue to acquire assets across the Greater Montreal Market. 

Centurion Apartment REIT acquired a newly built multifamily building in the city of Laval at the beginning of February for a price of 83.32 M$. The elevated price tag reflects the high demand relative to the offer available on the market for newly built multifamily buildings, especially for assets of more than 50 or 100 units. 

Still under the 5-year exemption of rent control, rising interest rates environment and financing cost during the acquisition can easily be offset by the rise in rents over the coming years in order to bring all rental prices to market level.

Targeting a demographic of active retirees and young professionals, Centurion was quoted as saying “The location and high-quality construction make it an excellent complement to the portfolio.” when talking about the asset they acquired. This one is the latest of a slew of acquisitions by Centurion over the last year and mainly targeting newly built buildings. 

The overall Greater Montreal region, and the city of Laval in this case, offer great potential for return and development for investors looking to diversify their portfolio.

As we hear more and more talk of a slowing market caused by inflation and a rising interest rates environment, those kinds of transactions are great news for the market since they are a sign that quality assets will continue to attract investment capital.