Boardwalk REIT has deepened its presence in Saskatchewan with the acquisition of three purpose-built rental townhome communities in Saskatoon and Regina, in an off-market deal directly from a local developer. 

The acquisitions are part of a broader capital reallocation strategy that sees the REIT selling off smaller, non-core properties in markets like Edmonton and reinvesting in higher-value communities in regions with strong economic and population growth. 

Saskatchewan, with its robust investment climate, affordability and lack of rent controls, fits neatly into that strategy. Townhomes, in particular, align with Boardwalk’s focus on long-term tenancies, operational efficiency, and providing more space and community-style living for families and newcomers to Canada.

“We’re always looking at our strategy through the lens of our residents,” Sam Kolias, chairman and CEO of Boardwalk REIT, told RENX.

“Townhomes offer more value, more space, and more retention, and Saskatchewan’s strong fundamentals - combined with affordable housing and no rent controls - make it an ideal market for us to reinvest in and grow.”

Boardwalk's acquisitions and divestments

The REIT acquired the three-community portfolio in Saskatchewan, totalling 235 newer townhomes, for an aggregate purchase price of $71.1 million. The price equates to approximately $303,000 per suite and a going-in cap rate of 5.2 per cent.

In conjunction with the acquisition, the trust will assume $19.1 million of conventional mortgages with an in-place interest rate of 2.35 per cent. 

The three communities, Bravo and Kingspoint in Saskatoon, as well as Park Place in Regina were completed between 2019 and 2022. Kingspoint is being rebranded to Westpoint, while Park Place is being rebranded to Beacon Townhomes.

Samantha Adams, senior vice-president, investments for Boardwalk, said the Saskatchewan market is a target region for investment by Boardwalk.

“These townhomes came to us as an off-market opportunity directly from the developer, a smaller, family-run company based in Saskatoon," she said. "What really caught our eye was the fact that they were townhomes. It’s very difficult to acquire purpose-built rental townhomes. So whenever we see those they draw our attention a lot faster.”

“Operationally, they’re incredibly efficient for us to run. No hallways to clean. You don’t have big common areas and community rooms you need to maintain. What’s more interesting from a resident member’s perspective is the townhomes truly feel more like a community. They’re great for families for example.”

The REIT also recently finalized the disposition of Imperial Tower, consisting of 138 suites in Edmonton, for a gross sale price of $28.75 million. That equates to approximately $208,000 per suite, a slight premium to its Q1 2025 IFRS value. The existing mortgage carries a balance of approximately $10.7 million at an interest rate of 4.49 per cent. 

Strong housing fundamentals in Saskatchewan

Kolias said the Saskatchewan market has strong economic fundamentals, citing a multi-billion dollar investment by BHP in one of the world's largest potash mines at the community of Jansen.

“That’s a lot of investment for a pretty small (population) base. So of course, where are the workers going to come from? Everywhere else. Saskatchewan is a phenomenal province that has the most affordable housing in the entire country,” he said. 

“Cheapest rents in the country.”

Adams said the REIT is always looking to acquire townhomes. It fits squarely within its strategy to find high-quality, affordable rental communities that it can own and operate in its core markets, including Regina and Saskatoon.

“We’re also still very interested in acquiring newer or nearly-new affordable apartment communities - whether they’re a six-storey wood-frame building or 21-storey concrete tower. But townhomes are few and far between, purpose-built rental townhomes . . . So when they do come up and they’re from a really reputable builder, we get very excited.”

Kolias said the REIT’s strategy includes selling its smaller and non-core communities and using that capital to purchase communities like the ones in Saskatchewan.

“Thirty-four per cent of our portfolio is in Edmonton. So selling some smaller, non-core assets in Edmonton and replacing them with very unique communities in Saskatchewan where the economy is really strong . . . gives us a chance to reallocate some of our capital in newer communities that are very unique in design as well.

Boardwalk's portfolio mix

"We have about 10 per cent of our communities as townhomes. We see a lot more retention and long-term residencies in townhomes. And, we see a lot of demand in townhomes because they offer more space and they offer more value. We look at value per square foot, not rent per square foot. The townhomes offer incredible value for renters, especially with an attached garage.”

Kolias said about 70 per cent of its portfolio is in Alberta and Saskatchewan, which also have the lowest rents in Canada, largely because they don’t have rent controls. That encourages investment and keeps housing affordable.

The rest of its presence is in Quebec and Ontario (about 15 per cent in each), with a small footprint in British Columbia.

He said the REIT’s focus remains in Saskatchewan and Alberta where there’s the strongest population growth, interprovincial migration, and economic momentum.

Kolias said “we've put the pause button” on new development, especially in downtown Calgary, because there’s already a surplus of new, higher-end rentals. There’s increased vacancy and softening rents in that $2,000-plus range. 

“The important part of our market to remember is there’s too much brand-new and the rents are dropping and there’s still a shortage of rentals in the $1,500 to $1,800 ranges and that’s where we see a lot of demand," he said. "What we’re doing is everything possible to keep our rents as affordable as possible."

“What we have seen over 40 years is there’s always demand for affordable housing. Always. Price matters. And it’s super important.”

In July, Boardwalk REIT provided an operational update indicating its same-property portfolio occupancy was 97.7 per cent in July compared to 98.6 per cent a year ago. Its occupied average rent was $1,554 in May compared to $1,444 in May 2024.

Boardwalk has a presence in 200 communities with 34,000 residential suites and 29 million net rentable square feet.