InvestPlus REIT is excited to announce the addition of a 25,650 sq ft commercial building to its portfolio for $4,800,000 at an existing cap rate 7.1%. Clearview239 is located in Clearview Industrial Park, a newer development on the south side of Red Deer with easy access to Red Deer, Gasoline Alley and QEII Highway. The acquisition was closed on December 2nd 2021 and marks another milestone within the InvestPlus portfolio — bringing the overall commercial space under management to more than 275,000 sq ft bringing the Assets Under Management (AUM) to $70 Million. We continue to further our footprint in the Industrial Space and adding assets with strong tenant covenants. The tenant is a manufacture of gas manifolds for the natural gas market in north eastern BC. The tenant has signed a 7-year lease with step rents. A great tenant with a strong covenant and business.
We have also been successful in having one of the Chartered Banks, National Bank, provide us financing for this great building. We have been able to secure financing with NB for a five-year term at a rate of 3.5%. These rates and terms from a Chartered Bank allow InvestPlus REIT to provide their unitholders with the security of having a long-term fixed mortgage, providing predictable revenue to the Trust. Furthermore, having National Bank as our lender further confirms the steps we are taking as a trust to grow and acquire accretive properties like Clearview239 is a step in the right direction. We are excited to work with National Bank and look forward to furthering our relationship with them in the future.
The Clearview239 building is projected to be accretive by an average of more than $140,000/year after unit-holder distribution for the term of the lease. This accretiveness will help sustain our distributions and help push our unit value up. The acquisition of this building also pushes our overall assets under management to $70M bringing our growth for 2021 up by 40% since December 2020.
We will continue to target strong-tenanted buildings in Western Canada that will not only provide us the performance and returns we are looking to achieve for our unit-holders but also assets and tenants that can and are weathering the storm in these tumultuous times. Please look forward to our next acquisition announcement, coming to you soon.
InvestPlus Real Estate Investment Trust (IP REIT) is a private real estate investment fund, based in Calgary, Alberta. IP REIT is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of commercial and residential properties in primary and secondary markets in western Canada. Management has transacted more than $150,000,000 in buildings in the provinces of BC, Alberta and Saskatchewan. The current portfolio is appraised at more than $70,000,000 and comprised of 101 rental units and more than 275,000 square feet of rentable area.
With more than 50% of our unitholders using their RRSP to invest in our Trust, find out more about our up and coming webinars where we will discuss how you too can use your registered funds or cash to invest in private commercial and residential real estate in western Canada.
Click HERE to find out more about InvestPlus REIT’s Current Offering Memorandum.