Commercial For For Sale

Trinity Apartments

Summary

CIVIC ADDRESS 380 & 400 Third Street, Nanaimo, BC V9R 1W6
LEGAL DESCRIPTION LOT B & C, SECTION 33, RANGE 7, SECTION 1, NANAIMO DISTRICT, PLAN 49379
PIDS 015-068-366;
015-068-382
SITE SIZE 1.35 Acres (approximately)
YEAR BUILT 1989
ZONING R6 - Townhouse Residential
CURRENT OCCUPANCY 100%
SUITE MIX
*One unit currently being utilized as a managers office
Studio                              66*
1 Bed                                  4
Total                                 70
AVG IN-PLACE RENT $1,043 | 26.3% Rental Upside
PARKING 42 Stalls (Surface)
STABILIZED NOI $668,981
BARE TRUST Yes
FINANCING Assume Clear Title
LIST PRICE $13,375,000 | 5% Cap Rate

The Opportunity

The CBRE National Apartment Group-BC is pleased to present the exclusive opportunity to acquire the 100% interest in the Trinity Apartments, a 70-suite rental apartment complex prominently located on Third Street in Nanaimo within walking distance to Vancouver Island University and a host of tenant friendly shops, services and amenities including the Nanaimo Ice Centre, Aquatic Centre and Nanaimo’s historic Old City Quarters.

The Trinity Apartments complex is comprised of two three-storey buildings situated on a large 1.35-acre site. The “California” style building design offers large studio style suites with individual entrances that appeal to a wide range of tenants that enjoy having their own front door including students attending the nearby Vancouver Island University. This building design offers a low maintenance and cost-effective alternative to traditional buildings as there are no common area hallways and lobbies to heat, maintain or clean.

The Trinity Apartments has undergone a significant transformation under the current ownership with almost all of the suites being fully renovated, new exterior paint (2019) and new on-demand hot water system (2018). One of the units has been converted into an onsite managers office with a modern security system including 39 security cameras positioned around the property. Many of the large studios lend themselves nicely to a conversion opportunity to create junior 1-bedroom suites and the current owner has already completed the conversion of a couple of suites. The studio style suites command market leading price per foot rents and provide good turnover, ensuring rents keep up with inflation.

Overall, a new owner stands to benefit from the acquisition of a well-capitalized asset with recurring cashflow, income growth and limited capital expenditure requirements going forward as well as a balanced roster of demand drivers that ensures the Trinity Apartments will remain a sought-after rental complex for years to come.

Investment Highlights

+ UNIQUE SCALE: With 70 suites, the Trinity Apartments offers unique scale providing for management efficiencies in a market characterized by smaller buildings.

+ LOW MAINTENANCE BUILDING DESIGN: The “California” architectural design provides a low maintenance and cost-effective alternative to traditional buildings as there are no common area hallways and lobbies to heat, maintain and clean.

+ TENANT PAID HEAT: Electric heat metered to and paid for by the tenants significantly reducing owner operating expenses.

+ SUITE MIX & CONVERSION POTENTIAL: Larger than average studio suites with individual entrances appeal to a wide range of tenants, maximize per square foot rents, generate healthy turnover and present the opportunity to convert the large studios into Jr. 1 Bedrooms suites to further maximize rental revenue.

+ STRONG FUNDAMENTALS: Canadian multifamily is one of the tightest property sectors in North America and the Nanaimo rental market is characterized by a growing housing undersupply, ownership cost challenges and record population growth leading to near zero vacancy levels and rapid market rent growth.

Property Photos

Address:
380 & 400 Third Street Nanaimo, BC
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