Calgary, Alberta–(Newsfile Corp. – January 17, 2022) – R2 Capital Partners Inc. (“R2”) announces the acquisition of 168 Rothesay Ave, Saint John, NB.
Figure 1: R2 CAPITAL PARTNERS ACQUIRES 13.2 ACRES, 155,459 SQ. FT. RETAIL PLAZA
The property spans 13.2 acres, consisting of a 155,459 sq. ft. retail anchored plaza. The tenants are a mix of publicly traded corporations, government, and national brands with a weighted average lease term (WALT) of 14.1 years, realizing a purchase capitalization rate of 8.8%.
R2 has realized forced appreciation in the property’s purchase value of approximately 35.2% based on a third-party as-stabilized appraisal. The significant percentage increase in property valuation is identified as a result of improving operational efficiencies, finalizing lease negotiations from key tenants, the favourable entry price of $12,500,000, and other value-add opportunities.
Further value-add opportunities which R2 will explore over the coming months include:
- Developing one or more Quick-Service Restaurants (QSRs).
- Renegotiation of under-market value lease rates.
- Leasing the remaining vacant space to a public corporation with a strong covenant and brand.
- Explore the potential for mixed-use, multi-family development with the abundant land area.
R2 Capital Partners Inc. is a privately held real estate investment firm offering investors and partners diversified exposure to residential and commercial real estate and utilizing a vast network of partnerships, relationships, and industry-leading technology to capitalize on emerging secondary and tertiary markets across North America.
R2 offers a full-service operating platform containing expertise in acquisitions, financing, property operations, renovations, accounting, risk management, market research, and other related support functions. Brock Rogerson and Spencer Riche lead R2 Capital Partners Inc., combining over 20 years of experience, jointly holding over $40 million in real estate assets, headquartered in Calgary, Alberta, with a second office in Winnipeg, Manitoba.
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