- What 624 King Street West sold for approximately $1,000/sq ft
- Why The seller plans to move more capital to the United States
- What next The buyer is a private business owner in the hospitality sector
A boutique office building in downtown Toronto has traded for approximately $18m, Green Street News can reveal.
Colliers had the assignment for the 18,000 sq ft property at 624 King Street West. The three-storey, brick-and-beam building was listed in 2023, and the sale closed at the end of June. The valuation works out to roughly $1,000/sq ft.
The seller is a private investor who intends to move more capital to the United States. The buyer is a private business owner in the hospitality industry and a tenant of the property.
Unbranded Hospitality & Entertainment is expected to open a restaurant called Cassius on the main floor before yearend. The building has four units that each span a full floor. Office tenants include real estate brokerages.
Over $500,000 has been spent on capital expenditures at 624 King Street West since 2017, including upgrades to the electrical and sprinkler systems and a new roof and windows. It was built in 1929 and is listed on Toronto’s Heritage Register. Five parking spaces are adjacent to the building.
The property is near the intersection of King Street West and Portland Street in Toronto’s entertainment district. The neighbourhood is adjacent to the financial core and is home to trendy bars and restaurants, as well as several similar boutique office buildings.
The 504 and 511 streetcar routes are nearby, as is the King/Bathurst stop on the future Ontario subway line. More than 1.3m people with an average household income of $136,000 live within a 10km radius.
According to CBRE, the overall office vacancy rate in downtown Toronto was 18.1% in Q2, and 15.3% among Class A buildings. The average net rent for the property type was $35/sq ft.
Asking net rent for a 22,600 sq ft office space at the King Portland Centre, next door to 624 King Street West, is $45/sq ft. The Comstock Building, a comparable asset in the financial district, is on the market for $18.5m.