- What The investment titan has agreed to purchase the 75% portion of the downtown Toronto office property it does not own
- Why Aimco and CPPIB are selling their stakes
- What next The deal is expected to close next month
Brookfield has agreed to acquire full ownership of 2 Queen Street East in a deal that values the property at roughly $215m, Green Street News can reveal.
The investment giant owns a 25% stake in the downtown Toronto office building, as does Alberta Investment Management Corp. Canada Pension Plan Investment Board owns the other 50%.
The deal, which is expected to close next month, will see Brookfield purchase the 477,000 sq ft property for just under $450/sq ft. The valuation equates to a first-year capitalization rate of 7%.
JLL and RBC Capital Markets had the assignment. As reported by Green Street News, the Class-A office building was relisted in May after ownership unsuccessfully shopped it in 2022 and 2023.
Trades of single office properties above $200m have been scarce in Toronto over the last two years amid rising interest rates. Large investors have opted to sit on the sidelines, awaiting more economic clarity.
In April, George Brown College and equity partner Halmont Properties purchased 25 Dockside Drive from H&R REIT for $232.5m. In 2023, Pinewood Group acquired 101 Commissioners Street from Build Toronto for $425m, and in 2022, BentallGreenOak sold 121 King Street West to Crestpoint Real Estate Investments for $303.5m.
As of Q2, 2 Queen Street East was 99.5% leased to 14 tenants, including Blaney McMurtry and CI Investments, with a weighted average lease term of 4.5 years. There’s 16,500 sq ft of street-facing retail space, with tenants including Booster Juice and Bank of Montreal.
Completed in 2003, the property has 171 underground parking spaces and offers direct access to the PATH and the Queen subway station. It’s designated LEED gold and certified BOMA 360 and WELL Health-Safety.
The building occupies a full block at the northeast corner of Yonge and Queen Streets. It’s adjacent to CF Toronto Eaton Centre and near Union Station, the Don Valley Parkway and the Gardiner Expressway.
