Campus Crest Communities JV Buys Montréal Hotel to be Converted into Urban Student Housing Tower
- Jan 27, 2014
U.S.-based Campus Crest Communities Inc. in a joint venture partnership with Geneva- and London-based Beaumont Partners SA acquired the 488-room Holiday Inn Midtown in Montréal, Québec.
Located at 420 Sherbrooke West Highway 2, near Place des arts & Old Montreal and close to the financial district and the city’s extensive underground shopping and dining center, the property was acquired for CAD $65 million (approximately $58.7 million).
The partnership plans to convert the property, which is also close to McGill University, into an upscale evo student housing tower (the evo brand provides urban students with a luxury student housing option with all the conveniences of city living). Campus Crest owns a 35 percent interest in the joint venture that holds the newest evo and a previously announced evo at Square Victoria, while Beaumont and its partners own a 65 percent interest. Both evo properties are scheduled to be completed in the fall of 2014, with leasing expected to start in the first quarter of 2014.
In parallel with the Holiday Inn acquisition, the partnership also announced it has closed a new loan to help fund the conversion of both hotels into upscale student housing towers. Royal Bank of Canada, Bank of America and Raymond Jones provided the financing.
“We are pleased to expand our relationship with Beaumont with the acquisition of the Holiday Inn and to bring more of our unique evo student housing brand to Montréal. With its proximity to McGill University, we once again believe we have acquired an asset in an irreplaceable location at a discount to replacement cost,” said Chairman of the Board & CEO of Campus Crest, Ted Rollins. “We will be able to leverage the platform we put-in-place with our July 2013 acquisition of the Delta Centre-Ville Hotel and remain enthusiastic about the market. Our teams look forward to opening both Montréal assets for the 2014 – 2015 academic year.”
Located in the heart of the urban university community surrounding the campus, the newest evo upon completion is expected to attract undergraduate and graduate students by offering an upscale housing alternative. As per the joint venture agreement Campus Crest will serve as property manager. The property will offer residents an engaging lifestyle program with a vast array of diverse activities and events.
“We are pleased to increase our investment in Montréal and, together with our partner Campus Crest, we are committed to delivering the highest quality of student housing,” said Alex Vahabzadeh, principal of Beaumont Partners. “We anticipate that our new properties will complement the numerous advantages and positive qualities of Québec’s universities for local and international students.”