Virtus Diversified REIT announces acquisition of free-standing Walmart property
14 Mayo 2024 - 10:06AM
Virtus Capital Corporation, the asset manager of Virtus Diversified
REIT is proud to announce its latest strategic move in expanding
its portfolio with the acquisition of a free-standing Walmart
tenanted property located in Flin Flon, Manitoba. This acquisition
marks a significant milestone for Virtus Diversified REIT as it
continues to strengthen its retail presence with reliable anchor
tenants in strong markets across Canada. “This acquisition is a
great example of our ‘make the money on the buy’ strategy,” said
Aurelio Baglione, CEO of Virtus. “We originally tied up this
property for $5.25 million, we walked away from the deal because I
thought we could do better. I was re-approached by the broker 4
months ago and was able to negotiate a purchase price of $3.95
million. I’m thrilled to announce that the purchase has closed.”
A recent appraisal by Cushman & Wakefield assessed the
market value of this property at $5.1 million. With this purchase,
Virtus Diversified REIT’s Assets Under Management increased to
$62.8 million based on purchase price.
Situated within a major northern retail hub and surrounded by
other national retailers, the Walmart at 200 Manitoba 10 serves as
a vital cornerstone for the surrounding communities. Walmart
exercised its rights to extend the lease by 5 years in November
2022, further cementing the stability of the property.
With approximately 3,000 households within a 10-kilometer radius
and an impressive average household income of $107,165, this retail
location is strategically positioned to cater to the needs of the
local community, offering an attractive investment opportunity for
Virtus Diversified REIT and its stakeholders.
“We are excited to announce the acquisition of the Flin Flon
Walmart property, which we were able to acquire well above current
market capitalization rates (and well below replacement cost),”
said Josh Will, EVP, Virtus. “By acquiring the free-standing
Walmart, we're not just expanding our footprint, but also our
commitment to serving communities and investors with excellence.
This is exactly the type of property we are seeking to add to our
portfolio – high yield with exceptional covenant, allowing us to
maintain our target distribution and build a solid,
recession-resilient base.”
The plaza boasts an expansive 63,439 square feet of retail space
on 6.49 acres, ample parking with 373 stalls, providing a ratio of
5.88 stalls per 1,000 square feet. Constructed in 2002 and refaced
in 2013 to current quality design standards, the property offers a
modern and inviting atmosphere for shoppers.
Virtus Diversified REIT remains dedicated to pursuing
opportunities that drive growth and create value for its
unitholders. This acquisition exemplifies this commitment and
reinforces Virtus Diversified REIT's position as an ascending
player in the Canadian real estate market.
For more information about Virtus Diversified REIT and its
investment opportunities, please visit www.vreit.ca.
About Virtus Diversified REIT
Virtus Diversified REIT is focused on acquiring quality
properties in strong secondary and tertiary markets across Canada
and the United States. The company’s goal is to build a strong and
stable commercial, industrial, retail, and multi-unit residential
portfolio, enhancing overall portfolio incomes by diversifying the
tenant base and geographic location. The long-term goal is to
maximize the unit value with ongoing management through future
acquisitions, repositioning, and competitive financing.
Some of Virtus Diversified REIT’s anchor tenants include
companies such as Walmart, Crown Corporation, BJ’s Wholesale Club,
The Brick, No Frills and Dollarama.
Contact Information
Josh Willinfo@vreit.cawww.vreit.ca