Crown Realty Dives into Hot Toronto Market
- Apr 18, 2017
Crown Realty Partners has expanded its presence in Canada with an office building acquisition in one of Toronto’s hottest markets. The real estate investment and management firm paid north of C$100 million (roughly $75.3 million) for the nine-story property located at 111 Peter St. in the dynamic Downtown West neighborhood and close to the city’s financial core.
“We are excited to complete this acquisition as it appeals to a broad range of tenants within a dynamic office node,” said Emily Hanna, partner, investments, Crown Realty Partners, in prepared remarks. “This asset also contributes to the geographic diversity of CR III LP, which has, to this point, acquired over 1.4 million square feet of space within Markham, Mississauga and North York.”
Crown currently holds a 50 percent stake in the asset, with the remainder held by three undisclosed institutional partners.
Completed in 1972 to house manufacturing and warehouse activities for the garment industry, 111 Peter St. went through a major redevelopment process in the mid-1980s, when three floors were added to its original structure. The building is situated in the heart of an office node that has traditionally nested businesses operating in the technology, advertising, media and information sectors. The property offers underground parking, 29,000-square-foot floor plates, high ceilings, spacious corridors, as well as freight elevator and superior loading facilities. Influitive, Varage Sale, Leonardo Worldwide and Breather are on the list of tenants currently leasing space at 111 Peter St.
The building also includes ground-level retail space, most of which is occupied by grocery retailer Independent City Market. Crown is now looking to find a tenant for a 10,505-square-foot retail space that’s currently vacant.
The acquisition of the office asset on Peter Street marks the end of Crown’s third fund, but the company announced the initial closing of its fourth value-add fund, Crown Realty IV LP, with $120 million of committed capital to date. The new fund, which is expected to close later this year with capital of more than $200 million, will also focus on office assets located in the Greater Toronto Area.
Image courtesy of Crown Realty Partners