- What The Class-A suburban office property at 5575 North Service Road sold earlier this month
- Why A local private investor purchased the property without financing
- What next The valuation for the 95,000 sq ft property comes out to $131/sq ft
A Class-A office building southwest of Toronto traded earlier this month for approximately $12.5m, Green Street News can reveal.
LaSalle Investment Management sold the 95,000 sq ft property, at 5575 North Service Road in Burlington, to a local private investor who purchased the property without financing. The valuation comes out to $131/sq ft. Marcus & Millichap’s IPA division brokered the deal.
The six-storey building is over 70% occupied. Tenants include EmpowerPharm, Heaps & Doyle, Pink Elephant and RCAP Leasing.
Built in 1999, the property was renovated in 2018. There are 350 parking spaces, a conference facility and a fitness centre.
The building has access to Burlington Transit, and is 1km from Queen Elizabeth Way, 2km from Appleby GO Station and 4km from Bronte GO Station. The City of Burlington is approximately 50km from Toronto in the Halton Region.
According to Colliers, Burlington’s office market had a vacancy rate of 13.4% in Q2, above the 11.3% average for the Greater Toronto Area West node.
LaSalle purchased 5575 North Service Road in 2016 as part of a four-building office complex, according to RENX. Called Burloak Towers, the $64.8m acquisition also included 5515 North Service Road, 1100 Burloak Drive and 5420 North Service Road.
The firm sold 5515 North Service Road to Goldnes Property Management for $20.2m in 2021. Leasing materials for 1100 Burloak Drive and 5420 North Service Road list asking net rent at $17.75/sq ft, slightly above the weighted average of $16.37 for Burlington, according to Colliers.
LaSalle Investment Management is an independent subsidiary of JLL. As of Q1, the company managed approximately US$87bn ($119.7bn) of public and private property and debt investments. Mark Gabbay is global chief executive.
