The REIT has agreed to acquire remaining interest in the Marquee at Block 37, a premium multi-suite residential property at the heart of Chicago's coveted Loop
MISSISSAUGA, ON, Nov. 6, 2019 /CNW/ - Morguard North American Residential REIT (TSX: MRG.UN) (the "REIT") announced today that it will acquire a 51% ownership interest in a luxury residential complex, the Marquee at Block 37, in Chicago, Illinois. The REIT has agreed to acquire the remaining 51% not already owned by Morguard Corporation ("Morguard") from its investment partner, with whom the property was developed in 2016. On closing, Morguard will increase its ownership from 49% to 50% and will operate the property on a 50/50 joint venture basis with the REIT.
The transaction is expected to close by mid-December for a purchase price of US$265.0 million (on a 100% property value basis). Management has secured mortgage financing on the property in the amount of US$165.0 million for a 10-year term at an interest rate of 3.27%.
The Marquee at Block 37 is a 38-storey, high-rise apartment building located at the corner of West Randolph Street and North State Street in the heart of the city's downtown and features 691 rental apartments, 130 parking spaces and extensive best-in-class amenities.
The property offers studio, one, two and three bedroom apartments ranging in size from 650 square feet to 2,100 square feet and features upscale finishes, spaces filled with natural light, and unique lake and city views from the heart of the Loop. The Marquee at Block 37 sits atop Block 37, a third party owned, 275,000-square-foot, four-storey vertical mall with 276 retail spaces. The property is connected to the Loop's pedway system, which offers subterranean shelter from the city's varied weather conditions.
"Our investment in this ideally located premium property is poised to further benefit from strong rental apartment demand in Chicago's core," said K. Rai Sahi, Chairman and CEO of Morguard. "We are excited to add to our ownership of this prominent property as we continue to augment our presence in this strategic market."
The acquisition represents a significant expansion of Morguard's footprint in Chicago, which will be comprised of ownership and management of 2,054 apartment suites. In addition to Marquee at Block 37, Morguard's high-rise multi-suite residential assets in the city include Alta at K Station and Coast at Lakeshore East, also located in the Loop area.
About Morguard North American Residential REIT
Morguard North American Residential REIT (TSX: MRG.UN) is an unincorporated, open-ended real estate investment trust. 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 residential apartment communities located in Alberta, Ontario, Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia and Maryland.
For more information, visit morguard.com.
SOURCE Morguard North American Residential Real Estate Investment Trust
For further information: Morguard North American Residential REIT, K. Rai Sahi, Chairman and CEO, T 905-281-3800; Beverley G. Flynn, Senior Vice President, General Counsel, T 905-281-3800; Christopher A. Newman, Chief Financial Officer, T 905-281-3800 or email [email protected]