Slave Lake Portfolio
Slave Lake, AB
For Sale
Property details
- Property Type: Multifamily - Walk-up & Townhome
- Sale Price (Total Portfolio): $39,424,500 CAD
- Cornerstone Apartments (116 Units): $18,444,000 ($159,000/Unit)
- Thomspon Landing (83 Units): $13,072,500 ($157,500/Unit)
- Senex Place Townhomes (24 Units): $4,008,000 ($167,000/Unit)
- Southwood Square Townhomes (24 Units): $3,900,000 ($162,500/Unit)
Location Overview
Slave lake is one of Canada’s youngest communities with a current population of 6,377 people, an increase of 2.8% from 2016. Increasing energy prices over the past 18 months have accelerated capital and maintenance spending in the region, resulting in increased labour demand and a rebound in the housing market. This is manifesting as increasing population and decreasing rental vacancy.
Investment Highlights
AFFORDABLE AND GROWING TERTIARY MARKET:
The average two-bedroom rent in Slave Lake is $1,307 and is lower than comparable energy markets; Fort McMurray ($1,384), Fox Creek ($1,882) and Black Diamond ($1,500). Paired with a high median household income of $109,000, Slave Lake is positioned to see steady and significant rental upside.
GREAT HISTORICAL OCCUPANCY AND FUTURE RENTAL UPSIDE:
Two of the largest assets in the portfolio operate as affordable housing projects with grant funding through the Province of Alberta. This has resulted in a steady flow of potential renters within the community and higher than average historical occupancy. Both Cornerstone Apartments and Thompson Landing are required to be affordable projects until October 2033 and April 2028, respectively. After these dates, the properties can move to a market rent structure, providing significant future upside of 10% plus market growth.
IMMEDIATE SCALE WITH CLOSE PROXIMITY:
The portfolio provides the opportunity to acquire 69% of the total multifamily market in Slave Lake. The portfolio is also an efficient scale supporting one full-time property manager, one full-time building manager, one full time janitorial and subcontracting for mechanical systems only.
CONSTRICTED SUPPLY AND HIGH DEMAND:
Currently, Slave Lake hosts 362 rental units and has not experienced a new multifamily development in more than 5 years. As of February, Cornerstone Apartments has a waiting list of 35 applicants and Thompson Landing Apartments has a waiting list of 10 applicants. The constricted supply coupled with a growing population has led to intensifying demand.
