CANMORE, AB, Oct. 10, 2013 /CNW/ - In one of the largest Edmonton
multi-family transactions of 2013, Prestigious Properties
("Prestigious") has completed the acquisition of a 71 unit apartment
building for $10.65M.
This acquisition will benefit Prestigious' cash-flow in an expanding
portfolio of revenue-generating rental properties and land holdings
which now exceeds $100M in assets across 950 units and 300 acres of
developable land in Canada and the U.S.
A rising player in the North American rental real estate market,
Prestigious Properties has developed a highly successful investment
strategy which has drawn an enthusiastic response from over 600
satisfied investors. Company president Thomas Beyer is bullish on the
company's business model and pleased by its surging growth profile.
"In any economy there is a need for reasonably priced, well situated,
appropriately renovated & impeccably managed apartments," Beyer
explains Prestigious' investment philosophy. "Renting is becoming the
economic choice of many because owning a house doesn't mean automatic
equity accumulation anymore, renting is usually far cheaper than
owning, and because it is far tougher today to get a mortgage than it
used to be," he adds.
"Edmonton is booming; it is one of the top growth and job creating
markets not just in Canada, but in the western world. Rents have risen
20-30% in the last two years in Calgary as evidenced by one of our best
performing assets located in Calgary. Edmonton usually lags Calgary
12-18 months. As such we expect rents to substantially increase in our
Edmonton portfolio, including this acquisition which boasts almost
exclusively very spacious two bedroom units."
In a nutshell, Prestigious Properties buys undervalued apartment
buildings in urban markets, such as Edmonton. The company renovates,
manages, re-finances and occasionally sells properties while both
equity and rents increase over time.
Scotty Grubb, Senior VP Business Development Prestigious Properties,
adds: "Echo-boomer demand, in-migration, tightening credit
requirements, and higher down payments translates into stronger demand
for rental accommodation, lower vacancies and ultimately results in
higher rents. We can currently buy apartment buildings for far less
than replacement cost, with relatively predictable rental growth and
very inexpensive financing. With all the ingredients for a long-term
boom in place, we are expanding our proven buy, upgrade and cash-flow
model in our core market, which is larger Alberta urban centers where
the majority of our Canadian assets are located."
Troy Barker, Assistant VP Commercial Mortgages, Prairie Region of First
National states, "We are extremely pleased to provide Prestigious
Properties with short-term mortgage financing allowing Prestigious to
increase rents, stabilize cash-flow and re-finance in a year with
historically low interest rates for improved cash-flow. We have worked
with the group for years and are looking forward to working with all
buyers of small and large multi-family transactions."
Prestigious Properties is a privately owned, Alberta-based company which
creates wealth for investors by offering well selected real estate
investments that provide positive cash flow, tax free equity growth,
and hassle-free management, for the benefit of tenants, communities and
investors. Investments are sold via offering memorandum through Exempt
Market Dealers that provide financial advice. This announcement shall
not be construed as investment advice nor as a solicitation for
investments. No returns are guaranteed, even with a verifiable and
decade long track record. Risks, minimum hold period and redemption
restrictions apply and are outlined in the offering memorandum.
Image with caption: "Prestigious Properties Closes One of the Largest Edmonton Multi-Family Acquisitions of 2013 (CNW Group/Prestigious Properties)". Image available at: http://photos.newswire.ca/images/download/20131010_C9247_PHOTO_EN_31971.jpg
Image with caption: "Prestigious Properties Closes One of the Largest Edmonton Multi-Family Acquisitions of 2013 (CNW Group/Prestigious Properties)". Image available at: http://photos.newswire.ca/images/download/20131010_C9247_PHOTO_EN_31970.jpg
Image with caption: "Prestigious Properties Closes One of the Largest Edmonton Multi-Family Acquisitions of 2013 (CNW Group/Prestigious Properties)". Image available at: http://photos.newswire.ca/images/download/20131010_C9247_PHOTO_EN_31972.jpg
SOURCE: Prestigious Properties
For further information:
Prestigious Properties Group
Christine Kopr, Director Business Development
#912, 743 Railway Ave. Canmore, AB T1W 1P2 Canada
T: 403-678-3330 or 1-877-434-4345 Ext:102 F: 403-770-8885
E: email@example.com W: www.prestprop.com