True North Apartment REIT strengthens its portfolio in Tillsonburg, Ontario

True North Apartment Real Estate Investment Trust is pleased to announce the acquisition of 183 Lisgar Avenue, Tillsonburg, Ontario, at purchase price of $2.4 million.
The Property is comprised of 40 suites, consisting primarily of two or three bedroom units. Originally constructed in 1976, the Property is situated in close proximity to two other properties already owned by the REIT, both of which are also located in Tillsonburg. The Property is well maintained, in keeping with the REIT's stated strategy, and near-term capital expenditures are expected to be minimal.
The purchase price of $2.4 million implies a capitalization rate of approximately 6.52%. The purchase price will be financed through a combination of cash and $1.5 million in new mortgage debt. The new mortgage debt is a seven year mortgage at 3.68% interest rate. The impact on the capital structure is expected to be minimal.
"True North is very pleased to be able to further strengthen both our overall property portfolio and our position in Tillsonburg," stated Leslie Veiner, True North's Chief Executive Officer. "Our first two properties in Tillsonburg have demonstrated strong performance to date, and as a result we expect that this new acquisition will prove to be a positive addition to our portfolio."

on January 27, 2013