Alignvest Student Housing REIT has entered into a binding contract to purchase a new purpose-built residential rental property in Waterloo, Ont., for an undisclosed price.

The transaction is slated to close in May 2024, Toronto-based Alignvest said in a news release. The 25-storey tower is located near the University of Waterloo. The building’s 340 units are furnished and provide housing for 659 students.

The building is located at 308 King Street North and has been in operation since September 2023. The ground floor contains about 8,000 square feet of commercial space.

Sanjil Shah, Alignvest’s managing partner, said the building complements the REIT’s other properties in the area and allows for operational efficiencies.

Alignvest’s Waterloo portfolio has historically operated at full occupancy and is almost fully preleased for September 2024, he added. With the acquisition completed, Alignvest will provide housing for 2,800 students in Waterloo.

Alignvest owns student housing assets in Ontario, Nova Scotia and Alberta.

Photo: Alignvest Student Housing REIT