- What Québec-based Brasswater bought two industrial properties on the Island of Montréal for $43.9m
- Why The properties were purchased for their exceptional location in Lachine Industrial Park
- What next The existing lease provides for significant annual rent increases
Brasswater has bought two industrial properties on the Island of Montréal for $43.9m, Green Street News can reveal.
The properties, spanning a combined 193,000 sq ft, are fully occupied by a single tenant. The valuation works out to $228/sq ft. RBC Capital Markets brokered the transaction on behalf of seller KingSett Capital. The deal closed on Aug. 6.
VA Capital brokered the acquisition financing for Brasswater, of Westmount, Que. The lender was SBI Canada Bank.
Silgan Plastics Canada fully occupies both properties under a 10-year lease with significant annual contractual rental escalations. The buildings, at 1625 and 1795 32e Avenue, total 79,000 sq ft and 113,000 sq ft, respectively. They have 22- to 24-foot clear heights and are close to Highways 13, 20 and 520 as well as the Montréal-Pierre Elliott Trudeau International Airport.
The properties were purchased for their exceptional location, as they are strategically situated in the desirable Lachine Industrial Park on the Island of Montréal, a source said, adding that they are quality single-tenant industrial properties that have been well maintained and institutionally managed, offering significant cashflow growth through rental increases.
Brasswater, one of the largest private buyers of commercial real estate in Québec, has about $2.5bn of assets under management covering 14 million sq ft across Canada and the U.S.
Savills said in a recent report that Montréal’s industrial market continues to inch closer to pre-pandemic norms, with vacancy rising throughout 2024. In Q2, the greater Montréal area’s vacancy reached 4.3%.
