Montreal — The two former hotels will transition to upscale "evo" student housing by fall 2014.
Montreal — Campus Crest Communities and Beaumont Partners, an international private equity and real estate investment company based in Geneva and London, have acquired the 488-room, 22-story Holiday Inn Midtown in Montreal on Jan. 15, with plans to convert it into an evo student housing tower near McGill University, a public research institution with a 2012 enrollment of 38,779. The partnership paid approximately CAD $65 million for the property.
The evo brand will be associated with upscale high-rise apartments in urban markets for undergraduate and graduate students in the United States and Canada. The Holiday Inn property will be the second evo project in Canada. The other property, also in downtown Montreal, is the former Delta Centre-Ville Hotel that was acquired in July 2013 and will be rebranded evo à Square Victoria. The newest acquisition has not yet been named. The target completion date for the properties is fall 2014, with leasing to begin in the first quarter of 2014.
Campus Crest owns a 35 percent interest in the joint venture that holds the newest evo and the previously announced evo à Square Victoria, while Beaumont and its partners own a 65 percent interest. In conjunction with the Holiday Inn acquisition, the partnership closed a new loan to help fund the conversion of both hotels into student housing towers. The financing was provided by Royal Bank of Canada (lead), Bank of America and Raymond James.
"With its proximity to McGill University, we once again believe we have acquired an asset in an irreplaceable location at a discount to replacement cost," says Ted Rollins, chairman of the board and chief executive officer of Campus Crest.
Situated on Sherbrooke Street approximately 200 yards from McGill University, the newest evo is located in the urban university community surrounding the campus. Once completed, the property will offer what it's calling an "upscale housing alternative" with furnished rooms and a range of amenities. The property will also offer residents a lifestyle program with activities and events. Residents will be served by a staff that includes a general manager, leasing manager, community assistants and a courtesy officer for security purposes. As part of the joint venture agreement, Campus Crest will serve as property manager.