- What IMCO and Cadillac Fairview’s 700 and 750 West Pender Street are in play
- Why The valuation works out to a first-year capitalization rate of 7.4%
- What next JLL has the assignment
An office complex in downtown Vancouver is on the block for $135m, Green Street News can reveal.
Investment Management Corp. of Ontario and Cadillac Fairview have given the assignment for 700 and 750 West Pender Street to JLL. The valuation for the two buildings, collectively measuring 293,000 sq ft, is $461/sq ft. The price translates to a first-year capitalization rate of 7.4%.
The 17-storey buildings are 86% occupied and have a weighted average lease term of 4.1 years.
Gracorp, MDC Canada and Randstad Canada lease space at 700 West Pender, which was completed in 1972. 750 West Pender was completed in 1976. Tenants include BC Financial Services Authority, Global Carbon Credit Corp. and Immigrant Employment Council of B.C.
Eyes Inspire, Tim Hortons and Tractor Foods occupy ground-level retail space.
The buildings are connected by a glass concourse, which also connects to CF Pacific Centre. The complex has a 217-car parkade, an outdoor terrace and a fitness centre. It’s WELL Health-Safety and BOMA Best gold-certified.
There has been over $10m of capital invested in the buildings over the past 10 years. According to marketing materials, there are value-added opportunities in the retail component and possible long-term redevelopment or repositioning of the office assets.
At the corner of West Pender Street and Granville Street, the buildings are within 2 km of the Granville Street Bridge, the Cambie Street Bridge and Stanley Park. They have an indoor connection to the Canada Line and Expo Line SkyTrain and are serviced by multiple TransLink bus routes.
IMCO is an independent investor operating on behalf of Ontario’s public-sector institutions. Bert Clark is president and chief executive of the Toronto-based company, which manages over $77bn of assets.
Cadillac Fairview is wholly owned by the Ontario Teachers’ Pension Plan and has $29bn in assets under management. Helmed by president and chief executive officer Salvatore Iacono, the company is headquartered in Toronto.
Cadillac Fairview is also looking to offload an office campus in Toronto for $170m.
