Student Housing Asset Commands $55M in Tight Canadian Market
Alignvest Student Housing Inc. has entered the Ottawa, Ontario market with the acquisition of 1Eleven—a 224-unit, 357-bed student housing property situated in an undersupplied market—from CA Ventures, for $54.7 million. Cushman & Wakefield negotiated the deal on behalf of the buyer.
Located at 111 Cooper St., the building is approximately a quarter mile from the University of Ottawa via a pedestrian bridge over the Rideau Canal and is less than 10 minutes from Carleton University.
“1Eleven came online in 2015 as the first off-campus, all-inclusive, purpose-built student accommodation asset in the Ottawa market,” Jake Mandel, Alignvest Student Housing’s analyst, told MHN. “Although enrollment at the University of Ottawa and Carleton University have increased 6 percent over the past five years, and the number of applicants to the University of Ottawa grew by 15 percent year-over-year in 2018, the two universities only have around 8,500 beds available for their students, representing 14 percent of their total full-time enrollment.”
As a result, Alignvest was determined to capitalize on the significant demand/supply imbalance by acquiring 1Eleven.
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