NANAIMO — A private investor has added a sizeable block of new rental housing to the city’s stock with the purchase of three newly constructed buildings on Junction Avenue.
Details of the acquisition
LGI Investments Ltd. acquired a portfolio comprising the buildings at 1280, 1290 and 1300 Junction Avenue for approximately C$70.4 million. The trio of properties contains a combined 213 rental units and was reported to be roughly 90 per cent occupied at closing.
The deal involved significant legal and transactional work. Vancouver-based law firm Fasken advised LGI on the purchase agreement and carried out comprehensive due diligence. The firm’s team was led by Kareem Jetha and Paul Grewal (Real Estate) and included Michael Griffin (Real Estate). The acquisition was completed with CMHC‑insured financing, a common tool for funding multi‑unit residential purchases.
What the transaction involved
According to the advisers, the purchase included properties that were newly constructed and already tenanted, which introduced additional layers of complexity. That complexity centred on a mix of municipal servicing matters, bonds and securities, tenant issues and post‑closing adjustments.
- Addresses: 1280, 1290, 1300 Junction Avenue
- Total units: 213
- Purchase price: C$70.4 million
- Occupancy at closing: ~90%
- Financing: CMHC‑insured
| Item | Figure |
|---|---|
| Units | 213 |
| Price | C$70.4 million |
| Occupancy | ~90% |
| Addresses | 1280 / 1290 / 1300 Junction Ave. |
Local context and considerations
The addition of 213 units represents a meaningful injection of rental supply in a single transaction. While the properties were newly built prior to the sale and already housing tenants at the time of closing, the change in ownership could have implications for management practices, maintenance priorities and tenant relations — common considerations when purpose‑built rental stock moves to institutional or private real‑estate investors.
The transaction also underscores the role of mortgage insurance through the Canada Mortgage and Housing Corporation in facilitating large multi‑unit purchases. CMHC‑insured financing can enable buyers to access more favourable lending terms, which in turn can accelerate the flow of capital into local housing markets.
For the city, such acquisitions feed into broader conversations about housing availability, rental stability and the pace of new construction. Municipal officials and community stakeholders continually weigh how private investment in rental buildings intersects with planning, zoning and infrastructure requirements — particularly in neighbourhoods experiencing growth.
What happens next
Fasken’s involvement suggests the seller and buyer addressed pre‑closing conditions and post‑closing adjustments tied to municipal servicing and tenant matters before and after the transfer of property. From a tenant perspective, occupancy already being near capacity at closing should limit immediate relocation pressure; however, new ownership often brings changes in property management and capital planning.
City staff and local housing advocates will likely watch how LGI manages the portfolio, whether there are capital upgrades, and how rental rates evolve under the new ownership. Any significant changes would be subject to provincial tenancy regulations and local bylaws.
This transaction is part of an ongoing pattern of institutional and private investors acquiring multi‑unit residential properties across British Columbia, reflecting sustained interest in purpose‑built rental assets on the mid‑Island and elsewhere.
