Killam closes acquisition of Halifax apartment building

Executive Summary

• Killam Apartment REIT has completed the acquisition of the Forrest Green Apartments, a 109-suite residential property in Halifax, Nova Scotia.
• The transaction closed on January 27, 2026, with a gross purchase price of $29.6 million and a going-in capitalization rate of 5.0%.
• The acquisition aligns with Killam’s strategy to grow in core markets, leveraging the property’s large suite mix and potential for energy-efficiency upgrades to enhance performance.

Key Details

• Target Asset: Forrest Green Apartments, a 13-storey, 109-suite building located in the Clayton Park neighbourhood of Halifax, N.S.
• Transaction Value: Gross purchase price of $29.6 million.
• Capitalization Rate: 5.0% going-in cap rate.
• Financing: Killam anticipates placing a new CMHC-insured mortgage on the property.
• Property Specifications:
  • Constructed in 1973.
  • Suite Mix: Two-thirds (approx. 73 units) are three-bedroom, 1,400-square-foot suites; one-third (approx. 36 units) are two-bedroom, 1,150-square-foot suites.
  • Average in-place monthly rent: $1,860.
• Strategic Rationale:
  • Strong addition to the Halifax portfolio.
  • Large suites and affordable in-place rents address strong market demand.
  • Well-maintained condition with opportunities to reduce operating costs via energy-efficiency upgrades.
  • Meaningful mark-to-market opportunity as units turn, providing a runway for organic growth.

Notable Quotes

• "This acquisition represents a strong addition to our Halifax portfolio and aligns directly with our long-term strategy for growth in our core markets. The large suites and affordable in-place rents position us well to meet the strong demand for this product," noted Philip Fraser, president and chief executive officer. "This is a well-located property that has been well maintained and which offers additional opportunities to reduce operating costs through energy-efficiency upgrades. With these enhancements, we see potential to strengthen the asset's performance within our portfolio."