Chilliwack, BC, Canada (August 3, 2021) – Westbow Capital Income Fund (“Westbow Capital”), a privately held real estate trust, is pleased to announce a $14,475,000 acquisition in Red Deer, Alberta.  

About The Property
The Red Deer Property is a 133 unit, 4-story residential apartment community, acquired for $14,475,000. The property consists of four buildings built over 1980-1981.  The property has an excellent location with close proximity to Red Deer College, and had an occupancy rate of 96% at acquisition.

The property is a mix of bachelor, one and two-bedroom units, with an average unit size of approximately 792 square feet. Two-bedroom units make up 65% of the apartment unit mix. Compared to the competition in Red Deer, the larger suite sizes in the buildings have led to historically low vacancy rates  The property was acquired at a 6.4% cap rate and was purchased because of its positive cash flow and excellent location.

Primary Rental Market Statistics
The rental market in Red Deer is very promising for long-term investment due to strong fundamentals such as growing population and job growth. Red Deer’s population is approximately 106,000 and has been growing at a rate of approximately 1.2% per year. The central location between Calgary and Edmonton and the favorable business environment has resulted in companies expanding or setting up new operations in Red Deer. The city has a diverse economy with major sectors such as manufacturing, healthcare, construction, and natural resources. The diverse economy, growing population and, job growth are contributing to an environment with strong cash-flowing properties with room for potential appreciation.