- What A private family has floated 300 Wellington Street
- Why The valuation for the 88,000 sq ft building is $125/sq ft
- What next A Team Real Estate Brokerage has the assignment
A brick-and-beam office building in London, Ont., is on the block at a 3% capitalization rate, Green Street News can reveal.
A Team Real Estate Brokerage has the assignment for 300 Wellington Street on behalf of a local private family. The valuation for the 88,000 sq ft building is $10.9m, or $125/sq ft.
Marketing materials note that the property has significant potential to boost rents, which could raise the cap rate to 12%. The campaign is targeting owner-users and investors.
The second floor is leased to Northern Commerce, and the main floor is occupied by four tenants, including Canada Post, Diebold Nixdorf and NBM Engineering. There is 32,000 sq ft available, spread across the vacant third floor and two main-floor suites. Base rents range from $5 to $15/sq ft.
Completed in 1949, 300 Wellington Street has two passenger elevators, a freight elevator and 314 parking spaces. Amenities include a common outdoor space with a kitchen, a firepit and a putting green.
The building is on 2.4 acres at the corner of Wellington Street and Bathurst Street. It’s within 1 km of Victoria Park, Citi Plaza, Talbot Centre and Canada Life Place. The London train station, which is serviced by VIA Rail and connects to Toronto, and public transit stops are nearby.
As of Q3, the office vacancy rate in London’s core was 31.4%, according to CBRE. Asking net rents were $13.80/sq ft. No new supply is under construction, and net absorption for the quarter was negative 51,000 sq ft.
