InvestPlus Acquires Another 22,000 SF
InvestPlus REIT is excited to announce the addition of a 21,728 sq ft commercial building to its portfolio for $5,800,000 at an existing cap rate 7.89%. The Digitex Building is very well located in ever-popular Gasoline Alley in Red Deer Alberta. Gasoline Alley is the home to the amenity-rich area for locals and travelers who travel between Calgary and Edmonton. The acquisition was closed in June 2024 and marks another milestone within the InvestPlus portfolio — bringing the overall commercial space under management to more than 510,000 sq ft brining the Assets Under Management (AUM) to $95 Million. We continue to further our footprint in the Industrial Space and adding assets with strong tenant covenants. The tenant is a Fortune 500 company who’s strategy for this building is to make it it’s head office for western Canada. 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 5.7%. 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 The Digitex Buidling 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 Digitex Building is projected to be accretive by an average of more than $500,000 over the next 4 years 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 $95M bringing our growth for 2024 up by 7% since December 2023.
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 with the acquisition of The Digitex, is appraised at more than $95,000,000 and comprised of more than 510,000 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.
Schedule a discovery call with InvestPlus REIT today.
Click HERE to find out more about InvestPlus REIT’s Current Offering Memorandum