- What A two-building warehouse property has traded in Oakville, Ont.
- Why Dream Industrial REIT agreed to pay Crestpoint Real Estate Investments $231/sq ft
- What next The warehouses are fully leased
Dream Industrial REIT has purchased a warehouse property in Oakville, Ont., for $59.2m, Green Street News can reveal.
The investment trust agreed to pay Crestpoint Real Estate Investments $231/sq ft for 1218 South Service Road West, comprising two industrial buildings totaling 256,000 sq ft.
The deal closed in early April. Avison Young had listed the property six months ago.
The two warehouses are fully leased, marketing materials said. Current rents are assessed below market rates and the average remaining lease term was three years as of last autumn. A document-shredding company is among the commercial tenants.
The buildings, on just over 17 acres, date to 1987. The larger building — North — is just over 128,000 sq ft and has a maximum clearance height of 37 ft. Building South is just under 128,000 sq ft, with a 35 ft maximum clearance height.
Crestpoint initially acquired the property in April 2012 for $30m in a portfolio sale of three Ottawa and Oakville office and industrial buildings.
The property is adjacent to the Queen Elizabeth Way provincial highway. The closest entrance to the highway is just over a kilometre at Third Line.
Toronto Pearson International Airport is 29 km away and John C. Munro Hamilton International Airport is 33 km away. The Peace Bridge border crossing, between Fort Erie, Ont. and Buffalo, N.Y., is 87 km away.
Dream Industrial is the industrial property investment arm of Toronto-based real estate titan Dream Asset Management. At the end of 2024, the investment trust had 335 industrial properties under management, totaling nearly 72m sq ft across core markets in Canada, the U.S. and Europe.
Crestpoint, a massive Canadian property management entity, has some 38m sq ft of commercial assets in its investment portfolio. Last month, Crestpoint and an unidentified institutional investor paid $340/sq ft to acquire Unilever Canada’s 745,000 sq ft Brampton industrial facility.
