- What 1375, 1383 and 1393 North Service Road East traded for $31.1m
- Why The properties were floated in November with guidance of $36m
- What next Colliers had the assignment
A suburban flex-office portfolio southwest of Toronto has traded for $31.1m, Green Street News can reveal.
An unidentified local private investor bought 1375, 1383 and 1393 North Service Road East, in Oakville, Ont., from Carttera Private Equities. Colliers led the deal, which closed in early June.
The valuation for the 109,000 sq ft portfolio works out to $285/sq ft. The assets initially were floated in November with guidance of $36m, or $330/sq ft.
The portfolio is 100% occupied with a weighted average lease term of four years. Tenants include HUB International, Schaeffler Canada, Henderson Partners and Parsons Corp.
Built by Carttera, the buildings were completed in 2015. They have 16-foot clear heights, and there are 450 parking stalls.
They account for half of the Joshua Creek Corporate Centre. The other three assets on the campus – 1405, 1425 and 1465 North Service Road East – were not included in the sale.
The complex, on 8.4 acres, is 100m from the Queen Elizabeth Way, and within 3 km of Ford Drive, Highway 403 and the Oakville GO station.
Private investors have been keen acquirers of suburban office properties over the last year, stepping in to fill the gap created by sidelined institutional capital. According to Green Street’s Sales Comps Database, Davpart sold Port Credit Corporate Centre, at 1599 Hurontario Street in Mississauga, for $12.3m in May, and the Jilani Group offloaded 5100 Orbitor Drive for $9.3m in April. Last summer, LaSalle Investment Management sold 5575 North Service Road in Burlington for $12.5m and 1100 Burloak Drive and 5420 North Service Road for $30.2m. Each of those assets was purchased by private capital.
Carttera is a real estate developer and institutional fund manager headquartered in Toronto. T. James Tadeson is founder and managing partner.
