- What A 172,000 sq ft shopping plaza is on the market in Cambridge, Ont.
- Why Plaza Retail REIT is shopping the property at a mid-6% cap rate
- What next A 5-acre parcel of surplus land is also available
Plaza Retail REIT is offering up a southwestern Ontario shopping mall at a mid-6% capitalization rate, Green Street News can reveal.
The trust is selling Tri-City Plaza, a 172,000 sq ft retail property at 150 Holiday Inn Drive in Cambridge. Based on a projected year-one net operating income of $2.5m, the property could fetch in the neighbourhood of $40m at that yield.
Marcus & Millichap’s IPA division has the assignment.
The property is 99% leased with about 16,000 sq ft of unused office space. Among the 11 tenants are national brands such as Dollarama, Tim Hortons and Wendy’s. The average remaining lease term is 6.5 years with an average rent of $15/sq ft. The plaza is shadow-anchored by a Zehrs grocery store within an adjacent retail strip mall.
Tri-City Plaza, on 14 acres, was built in 1971. It underwent an expansion in 2023 to accommodate the operations of mall tenants. The property has four drive-through pads.
It is within a busy retail area near the intersection of Hespeler Road and Highway 401. The closest entrance to Highway 401 is 400m away.
An adjoining parcel of land used for a parking lot is also on the market. Cushman & Wakefield and Lennard Commercial Realty, Brokerage are co-marketing the 5-acre site unpriced with potential for multi-use development. Severance of the parcel from the rest of the Tri-City property was recently approved by the municipality.
The parcel is also owned by Plaza REIT and can be purchased along with the mall.
In January, the investment trust purchased the remaining 50% ownership interest in a Dartmouth, N.S., shopping mall valued at $26m.
Headquartered in Fredericton, N.B., Plaza REIT owns and develops retail properties in Ontario, Québec and Atlantic Canada with a focus on open-air and small-box shopping plazas.
Correction: The headline was revised to clarify the cap rate.
