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Because many of the buildings are in need of maintenance, repair or upgrades, the new buyers were able to purchase the lot for just $135,000 per door.
“It’s a good purchase, and there’s a ton of upside to it,” Rullier said. “It’s a portfolio that needed a lot of capital to be injected in the next couple of years, but over time they will do very well.”
In the short term, the change of ownership will have little effect on the tenants of these complexes, Rullier said, but over time the new buyers intend to upgrade the buildings and will gradually raise the rent.
The deal marks RAAMCO’s exit from the Quebec market after three decades of building its real estate portfolio.
For longtime investors like this, it’s a great time to sell and cash in, Rullier said, because there’s a lineup of investment groups eager to buy.
