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