- What Choice Properties REIT acquired an Ottawa shopping centre for $31.7m
- Why Hazelview Investments and Trinity Development Group shopped the property earlier this year
- What next The strip mall is fully leased and anchored by Farm Boy
Choice Properties Real Estate Investment Trust purchased a grocery-anchored shopping centre in Ottawa for $31.7m, Green Street News can reveal.
Avalon Centre, at 2030 Tenth Line Road in the Orléans region of Ottawa, hit the market in August and was marketed by Marcus & Millichap’s IPA division. The deal closed on Dec. 11, and the sale price translated to a capitalization rate of around 6%.
The fully tenanted mall, anchored by Farm Boy, was sold by Hazelview Investments and Trinity Development Group. The offering drew significant interest, with over 50 confidentiality agreements signed and multiple bids placed.
Other tenants of Avalon Centre include M&M Food Mart, Once Upon a Child and several restaurants. The property’s weighted average lease term is around four years, and with a low retail vacancy rate in the surrounding area of 0.4%, there is strong rent growth opportunity.
This is Choice’s second notable retail acquisition in recent months. In September, the REIT jointly purchased a three-building Loblaw portfolio with Crestpoint Real Estate Investments for roughly $254m.
