- What The North York Square office complex sold for $83.5m at the end of May
- Why CBRE marketed the property on behalf of Crown Realty Partners and other minority owners
- What next The 90% leased complex has future redevelopment potential
North York Square, a 231,000 sq ft office complex in the north end of Toronto, has changed hands for $83.5m, Green Street News can reveal.
Lev NYC Inc. bought the two-building complex, at 45-47 Sheppard Avenue East, for roughly $361/sq ft. The deal closed on May 30. The building was sold by investment and management firm Crown Realty Partners, which owned a 50.4% stake, and minority stakeholders. CBRE brokered the deal.
To help fund the deal, Lev obtained two loans totalling $62m from Institutional Mortgage Capital Canada.
Crown had long been involved with North York Square before becoming an owner in 2017. It had managed the property since 2002 after arranging the $29.6m purchase of the buildings from Oxford Properties on behalf of a number of private investors.
The complex is on three acres less than 1 km from Highway 401 and the Sheppard-Yonge subway station. Built in the 1970s, the seven- and nine-storey buildings are 90% leased, with a weighted average lease term of 3.9 years. Tenants include the Superior Court of Justice Small Claims Court, IBT College and Legal Aid Ontario.
Although 90% occupied, marketing materials advertised the site as having redevelopment potential.
The Toronto office market has continued its downward trajectory in 2024, with sales falling, vacancy rates up and rent prices flatlining. Office buildings that are trading or booking new leases tend to be Class A or otherwise notable buildings.
In Q1, Canada Pension Plan Investment Board leased 327,000 sq ft at CIBC Square on Bay Street, while Invesco took on nearly 67,000 sq ft at the prominent 120 Bloor Street East, according to Colliers.
Another North York office property, also with value-added potential, traded in Q1 for $28.1m, or $194/sq ft. The mid-rise building at 180 Duncan Mill Road, though Class A, is much smaller than North York Square at 145,000 sq ft. Also in Q1, Toronto’s historic, flatiron-style Gooderham Building traded for $15.4m.
In April, Corus Quay, a 479,000 sq ft office complex on Toronto’s waterfront, sold to George Brown College for $235.5m, or $492/sq ft.
