Toronto-based NorthWest REIT has made its first real estate play in the nation’s capital, purchasing a controlling interest in a St. Laurent-area medical building.
The $3.5-million purchase of Smyth Medical Centre, at 1929 Russell Rd., is expected to immediately accrete to NorthWest’s revenues upon closing this fall.
The medical centre is a 35,000-square-foot office condominium property. The condos have no mortgages on them, which will “provide an opportunity to secure longer-term financing in due course,” NorthWest stated.
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Current tenants are an array of health care-related businesses who do work with the Ottawa Hospital General Campus, including pharmacy, laboratory, physiotherapy, specialist and dental physicians. The occupancy rate was not disclosed.
The property appealed to NorthWest “due to its favourable location, diversified healthcare tenant mix and appealing design,” the REIT stated.
NorthWest also announced two separate transactions on Tuesday. The trust signed a deal to buy an 84 per cent stake in a medical office condominium property in Toronto for $16.44 million. The property includes 45,770 square feet that is leased on a long-term basis to the Albany Medical Clinic.
Additionally, NorthWest has agreed to a new 10-year, $33-million mortgage against the Sunridge Professional Centre in Calgary, which it expects will generate revenues of about $21 million after costs.
– With files from The Canadian Press