Last week, Calgary-based Boardwalk REIT (TSX: BEI.UN) announced that it had completed the acquisition of Elbow 5 Eight, a recently-completed rental building in the Windsor Park neighbourhood of Calgary.
Elbow 5 Eight is located at 730 58 Avenue SW, which is directly across the street from Meadowview Park and just a 10-minute walk west from the CF Chinook Centre shopping centre.
In July 2024, Boardwalk REIT announced that it had an agreement in place to purchase Elbow 5 Eight for $93.0 million. The building was under construction at the time and Boardwalk said they were expecting possession in Q1 2025. Last week, Boardwalk then confirmed that the transaction had closed.
The six-storey building — developed by Calgary-based real estate developer Cove Properties — houses 255 rental units, thus the purchase price translates to approximately $364,706 per unit.
Boardwalk said that closing was funded by cash on hand and Elbow 5 Eight is currently 23% leased at rents that are "in line with the Trust's pro forma underwriting."
According to Boardwalk's website, asking rents currently start at $1,729 for one-bedroom units, $2,159 for two-bedroom units, and $2,879 for three-bedroom units. Units with dens and additional bathrooms are also available at varying prices.
Residential suites include in-unit washers and dryers, full-size stainless steel appliances, and air conditioning, while building amenities include a fitness centre, community room, dog wash station, and rooftop terrace.
The Elbow 5 Eight property has been positioned under the REIT's "Boardwalk Lifestyle" brand, the company's "affordable luxury" tier. (The other two brands are "Boardwalk Communities" and "Boardwalk Living.")
The kitchen of a unit within Elbow 5 Eight. / Boardwalk REIT
"We are thrilled by the addition of the Elbow 5 Eight community to our Boardwalk Family Forever," said Boardwalk REIT Chairman & CEO Sam Kolias. "We look forward to welcoming new Resident Members to a home where love always lives as we complete the lease-up. The acquisition of this exciting new community strengthens our portfolio in an irreplaceable location while leveraging our operating platform and existing relationships to create exceptional value for our Unitholders."
"As we progress into our spring leasing season, we are encouraged by the performance and resilience of our communities so far in 2025," added Kolias. "The quality of our portfolio, as a result of our past investments and continuous commitment to positive Resident Member experience, is evidenced in our strong ongoing occupancy and results."
In the same announcement last week, Boardwalk REIT said that it's Same Property Portfolio Occupancy is at 97.9% as of April 2025 — about flat since December 2024. This time last year, however, it was 98.8% and it stayed in that range until December, when it started dipping below 98.0%. The average Occupied Rent is now up to $1,539 as of February and has been steadily increasing every single month since at least February 2024, when it was at $1,404.
As of December 31, 2024, Boardwalk REIT's portfolio consisted of 34,405 units and $8.6 billion in assets under management. The REIT is scheduled to release its Q1 2025 results after markets close on Tuesday, May 6.
