- What Yonge Corporate Centre is on the block for $170m
- Why Cadillac Fairview listed the property in 2022 for $220m
- What next It has short- and long-term redevelopment potential
A Class-A office campus in Toronto is being shopped for $170m, Green Street News can reveal.
CBRE and TD Cornerstone Commercial Realty have the assignment for Yonge Corporate Centre on behalf of owner Cadillac Fairview. The valuation translates to a first-year capitalization rate of around 8%.
The campus includes three midrise office buildings at 4100, 4110 and 4120 Yonge Street, and a low-rise heritage building at 4150 Yonge Street. Comprising a collective 658,000 sq ft, the price works out to $258/sq ft. In 2022, Cadillac Fairview floated the complex for $220m, or $334/sq ft, but no buyer was found.
Yonge Corporate Centre is 83% occupied by 26 tenants, half of which are investment grade. They include BlueCat Networks, Canadian Institute for Health Information, Dayforce, Ontario Lottery and Gaming, and Wawanesa Insurance. Auberge du Pommier occupies 4150 Yonge Street. The weighted average lease term is 3.6 years.
The campus has a fitness facility, a car wash and bicycle parking. It has direct access to the York Mills subway station, the York Mills GO bus terminal and the York Mills Centre, an office complex with several retailers. There are 1,293 parking stalls.
Yonge Corporate Centre is BOMA Best and LEED-gold certified. Cadillac Fairview has made over $10m of capital improvements since 2020.
The site, on 8 acres, has short- and long-term redevelopment potential. According to marketing materials, there is the possibility of relocating and consolidating tenants of 4100 Yonge Street to 4110 and 4120 Yonge Street, which would enable the construction of a three-tower development with nearly 800 residential units. Long-term, the site could support a full redevelopment totaling approximately 1.8m sq ft of GFA.
Near the corner of Yonge Street and Wilson Avenue, the campus is adjacent to the Don Valley Golf Course and less than 1 km from Highway 401. Downsview Park, Rosedale Golf Club and Yorkdale Shopping Centre are within 5 km.
