- What Brasswater has bought two industrial buildings in Québec and Ontario totaling 233,000 sq ft
- Why Seller SupremeX agreed to a valuation of $229/sq ft
- What next The deal hinges on a 10-year sale-leaseback provision
Brasswater has bagged a two-building industrial portfolio for $53.3m in a sale-leaseback deal, including its first acquisition in the Greater Toronto Area, Green Street News can reveal.
Seller SupremeX, a Montréal-based stationary products manufacturer, will remain the sole tenant of both properties as part of a 10-year sale-leaseback provision.
Brasswater announced the acquisition last week, but pricing information was not disclosed at the time.
The valuation for the 233,000 sq ft portfolio works out to $229/sq ft. CBRE’s Montréal and Toronto departments brokered the deal, which closed in July.
The larger building, at 7213 rue Cordner in LaSalle, Qué., traded for $31m. Built in 1998 and expanded 13 years later, it is a 135,000 sq ft warehouse with 23,000 sq ft of office space, serving as SupremeX’s headquarters. On nearly 8 acres, the warehouse has a 30-ft clearance height with six loading docks.
The property last sold just one year prior for $33.3m, according to Green Street’s Sales Comps Database. The price translated to a valuation of $246/sq ft and a capitalization rate of 6.4%.
The second building, at 400 Humberline Drive in Toronto’s Etobicoke region, traded for $22.3m. It is considerably smaller, measuring 96,000 sq ft, and includes 21,000 sq ft of office space and eight loading docks with a 22-ft clearance height.
Both properties are near major airports – the Cordner site is 10km east of Montréal-Pierre Elliott Trudeau International Airport and the Etobicoke property is 8km north of Toronto Pearson International Airport.
Headquartered in Montréal, Brasswater is a developer and one of the largest private buyers of commercial properties in Québec. It oversees a 13m sq ft portfolio of industrial, retail and office properties along with 13m sq ft of development land. Founded 10 years ago by president Ian Quint, the company has $2.5bn in assets under management.
In April, Brasswater floated a 1m sq ft industrial development site in the Montréal suburb of Laval for $45m. Earlier in the year, the company acquired its first two retail assets in the U.S. for a total of $26m.
