Morguard North American Residential REIT Completes Acquisition of a Class A Multi-Suite Residential High-Rise in Downtown Chicago
Mar 29, 2023
The REIT has purchased Xavier Apartments, a luxury residential community in Chicago's Near North neighborhood
MISSISSAUGA, ON, March 29, 2023 /CNW/ - Morguard North American Residential REIT (TSX: MRG.UN) (the "REIT") recently acquired Xavier Apartments, a Class A 240-suite residential building in Downtown Chicago. Located at 625 West Division Street, Xavier Apartments has distinctive appeal as a rental residence with its proximity to shopping, entertainment, employers, and future development that will fuel demand.
The transaction closed at a purchase price of US$81.0 million, excluding closing costs. The REIT funded the acquisition with net proceeds from the disposition of a property during the fourth quarter of 2022 and cash on hand.
"We are excited to acquire this institutional-quality asset in Chicago's vibrant Near North neighborhood," said Rai Sahi, Chief Executive Officer, Morguard North American Residential REIT. "The purchase of Xavier Apartments fits perfectly with our strategy to enhance portfolio quality in markets with strong fundamentals."
Xavier Apartments is a LEED Gold premium mixed-use residential property with a distinct green-living design, first-class amenities, and a community atmosphere. Built in 2015, the 18-story tower comprising 240 suites, includes 77 studios, 120 one- and 43-two-bedroom suites featuring attractive design and finishes. Residents of Xavier Apartments have access to two outdoor terraces with unobstructed city views, a modern fitness center, a sundeck and pool, a rooftop lounge and reserved parking with car charging stations. Each suite offers high efficiency heating and cooling systems, LED lighting, and Energy Star-rated appliances. Xavier Apartments is conveniently located close to a variety of restaurants, shopping, and entertainment options, as well as offers direct access to Chicago Public Transit.
"Xavier Apartments' sustainable design, condo quality features make it an excellent addition to our Chicago portfolio" said John Talano, Senior Vice President, US Operations. "Xavier is Morguard's first step into Chicago's Near North neighborhood which will further diversify our Chicago presence, making it an exceptional investment for the REIT".
The acquisition represents the continued expansion of the Morguard group's Chicago portfolio, which now comprises ownership and management of 2,643 apartment suites, valued at approximately US$950.0 million. In addition to Xavier Apartments, Morguard's high-rise multi-suite residential assets in the city include Echelon Chicago, Alta at K Station, Coast at Lakeshore East, and Marquee at Block 37, all located in downtown Chicago.
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. The REIT's portfolio consists of apartment communities located in Alberta, Ontario, Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia, and Maryland. For more information, visit the REIT's website at www.morguard.com.
SOURCE Morguard North American Residential Real Estate Investment Trust
For further information: K. Rai Sahi, Chairman and CEO, T 905-281-3800; Christopher A. Newman, Chief Financial Officer, T 905-281-3800; John Talano, Senior Vice President 504-904-8522, or email corporatemarketing@morguard.com
