- What Arkfield Developments has acquired 10 Lower Spadina
- Why The valuation works out to $396/sq ft, RENX reported
- What next Arkfield appears to have plans to redevelop the site into a residential tower
Arkfield Developments has bought a Class-A office building in downtown Toronto from Dream Impact Trust.
The Toronto-based developer paid $23.7m, or $396/sq ft, for the nearly 60,000 sq ft property at 10 Lower Spadina Avenue, RENX reported. CBRE and TD Cornerstone Commercial Realty brokered the deal, which closed late last month. CBRE also arranged financing on behalf of Arkfield.
According to marketing materials, the building is 100% leased to eight tenants including Advocis, the Turkish Consulate General and Kardia. The weighted average remaining lease term is 5.7 years, and the in-place weighted average net rent is $27.38/sq ft.
The seven-storey building was developed in 1986. Dream has spent $800,000 on capital improvements over the last five years, including upgrades to the HVAC system, windows and garage. Underground parking is available at a ratio of 1:2,000 sq ft and the building is certified BOMA best silver.
At the corner of Spadina Avenue and Queens Quay West in Toronto’s South Core, 10 Lower Spadina offers direct access to the 510 streetcar, Lake Shore Boulevard West and the Gardiner Expressway. It’s approximately 600 m from Billy Bishop Toronto City Airport and 1.3 km from Union Station.
The sales campaign highlighted the building’s redevelopment potential, noting that if it were assembled with the adjacent site at 20 Lower Spadina Avenue, the combined 0.63-acre parcel would be well-suited for a residential redevelopment.
Arkfield appears poised to pursue the play with a 360,000 sq ft, 500-unit residential tower. The project is listed as being in the planning and approval phase on the developer’s website.
Helmed by CEO Ramin Jalalpour, the company invests in and develops real estate in the GTA. In April, Arkfield acquired the Yonge Davis Centre in Newmarket for $31m.
Dream Impact Trust is managed by Dream Unlimited, which owns, manages and develops real estate across Canada. The company has over $23bn of assets under management across its five publicly listed entities, private funds and institutional partnerships.
Michael Cooper is president and chief responsible officer of Dream. In June, Dream Office REIT agreed to sell 438 University Avenue for just under $105m.
