Half of 1.1MSF Toronto Office Tower Fetches $420M
- Jul 25, 2008
Brookfield Properties Corp. has just pocketed approximately $420 million on the sale of its 50 percent stake in the TD Canada Trust Tower in Toronto to ownership partner OMERS Realty Corp. The 1.1 million-square-foot office high-rise is part of Brookfield Place, a 2.6 million-square-foot office and retail complex located on a 5.5-acre parcel in the city’s financial district. Developed in 1990 and designed by Bregman + Hamann Architects & Engineers, the 51-story TD Canada Trust Tower also features 17,000 square feet of retail space. Tenants at the 100 percent-leased property include Lehman Brothers, CIBC World Markets and TD Bank, which renewed its 191,000-square-foot lease for eight years in late 2007.Brookfield has not publicly disclosed its plans for the proceeds of the disposition. The company completed a $200 million financing of the property during the fourth quarter of last year. TD Canada Trust Tower is one of two office skyscrapers at Brookfield Pace. The other structure, the 47-story Bay Wellington Tower, encompasses 1.3 million square feet of office space and 41,000 square feet of retail. Toronto continues to be one of the strongest office markets in North America. The average vacancy rate for office space in the core financial district is 3.1 percent for all class types combined, and 2.4 percent for Class AAA properties, according to a second quarter report by real estate services firm Colliers International. New York City-headquartered Brookfield Properties owns, develops and manages high-quality office properties and is one of the largest commercial real estate firms in North America. The company’s portfolio includes interests in 108 office properties totaling 74 million square feet in the downtown markets of such major U.S. cities as Boston, Houston, Los Angeles New York and Washington, D.C., as well as Calgary, Ottawa and Toronto in Canada. Company stock opened at $18.20 today. Toronto-based OMERS Realty is an entity of OMERS, one of Canada’s largest pension plans managing in excess of $52 billion in net investment assets. OMERS’ real estate strategy is orchestrated through its wholly owned subsidiary, Oxford Properties.