Nexus Industrial REIT has acquired two Montreal-area buildings for $40.1 million.

The properties comprise a combined 277,000 square feet of gross leasable industrial real estate area and are fully leased under long-term agreements expiring in November 2032. The going-in capitalization rate on the leases is 6.6%, which is expected to reset to a stabilized market rate of 10.4% in 2028, according to Nexus. The acquisition was funded through draws on the REIT’s credit facility.

“The opportunity was too good for us to pass up,” said Kelly Hanczyk, CEO of Nexus Industrial REIT. “These two well-located, high-quality buildings will be immediately accretive to [adjusted funds from operations] and [net asset value] per unit. They are under long-term leases with significant mark-to-market potential in Year 4, leading to a stabilized cap rate of 10.4%.”

The assets include an industrial property at 7505 Rue Saint-Patrick in LaSalle, Que., with 193,916 sf of space, and a second industrial building at 2370 Rue de la Province in Longueuil, Que., totalling 83,249 sf.

“The buildings fit well in our portfolio, supporting our purpose as Canada’s industrial building partner with a vision to be the first-choice provider of high-quality industrial properties in Canada,” Hanczyk said.

Pictured: Longueuil, Que.s

Photo: Shutterstock