The Sault Ste. Marie Housing Corporation has approved the sale of its 102-unit, market-rent property at 49 St. Mary’s River Dr.

The sale of a waterfront apartment building owned by Sault Ste. Marie Housing Corporation has been approved for over $10 million.

The building at 49 St. Mary’s River Dr., known as Station 49 Apartments, was purchased by the housing corporation for $6,250,000 in 2019.

On Thursday, the board approved a sale of the building to the Whitfield Group for $10,317,000.

In a report to the board, District of Sault Ste. Marie Social Services Administration Board CEO Mike Nadeau said the building currently has 102 units that are rented at full market value.

The housing corporation is operated under the auspices of the DSSAB.

Nadeau said the proceeds from the sale will go toward the housing corporation’s core mandate and will help foster strategic growth.

“Historically, the SSMHC allocated $120,000 in positive income from the property to offset the local municipal levy on an annual basis,” said Nadeau in the report.

Although the selling price was below the $11,640,000 listing price through Colliers Int., the sale will result in a net proceeds of over $5.6 million, including the return of a $1-million bond through the SSMHC’s lender.

“The income earned from this property will allow the SSMHC to make strategic investments in the future aimed at further increasing net operating revenue and invest in strategic growth areas,” the report said.

“Additionally, divesting this asset also allows existing staff to focus on core operational efficiencies; reducing tenant arrears, increasing building efficiency, property management, etc.”

In an interview, Nadeau told SooToday that the housing corporation’s management will come up with a reinvestment plan and bring it to the board.

“We don’t know where yet, but we know that there’s a lot of pressure and there’s a lot of need and this puts us in a really strong position to be able to to grow the portfolio in in unique ways,” he said.

In 2022, the SSMHC conducted a recladding of the exterior at a cost of $267,628 through Sault Ste. Marie-based OnPoint CorkShield.