A multimillion-dollar Edmonton property purchase is an indication investors are confident in the city’s ability to bounce back from the economic strain brought on by COVID-19, says one analyst.
Firm Capital, a boutique real estate capital bank based in Toronto, bought a two-building Edmonton portfolio on April 1 for $11 million. Included in the sale are warehouses at 5618 76 Ave. and 3921 81 Ave.
Firm Capital was unable to be reached for comment Wednesday. A transaction sheet for the sale states both properties will be 100 per cent leased at the sale date.
The agreement also shows plans for 3921 81 Ave in Leduc. to be divided into five bays. The sale encompasses 90,348 square feet of building area.
Keith Reading, director of research for national real estate company Morguard Corporation, said the purchase shows investors are confident in Edmonton.
“It is an indication that investors are confident in Edmonton’s longer-term economic outlook and that the property will continue to attract tenants that will pay their rent,” said Reading. “They are looking for income security, they’re looking for basically full buildings or close to full buildings where they’re pretty confident that tenants will pay the rent.”