- What 1175 Douglas Street is expected to fetch bids of roughly $40.5m
- Why The valuation equates to a first-year cap rate of 7.5% to 8%
- What next Colliers and Marcus & Millichap’s IPA division have the assignment
An office building in Victoria, B.C., is expected to fetch bids of roughly $40.5m, Green Street News can reveal.
Owner Manulife has given the assignment for 1175 Douglas Street to Colliers and Marcus & Millichap’s IPA division.
Guidance for the 137,000 sq ft building is $280/sq ft to $290/sq ft, equating to a first-year capitalization rate of 7.5% to 8%. The property is free and clear of debt and is held in a bare trust.
The property is 97.3% leased to 13 tenants including CGI, CIBC, Colliers and Raymond James. The weighted average remaining lease term is 6.2 years. Since 2022, one new lease has been executed and there have been five renewals.
According to the marketing campaign, in-place contractual rents are below market rates, offering a buyer upside. Vacant units ask $25/sq ft net rent.
1175 Douglas Street was completed in 1969. Manulife has spent $7.1m on capital improvements since 2016, including corridor and lobby renovations and upgrades to the elevators and electrical systems. It’s BOMA Best Silver certified.
Amenities include showers, changing rooms, bike storage and a shared conference centre. There are 531 parking stalls and car-charging stations in an adjacent parkade.
At the corner of Douglas Street and View Street, the property is less than a kilometre from Victoria Harbour, Beacon Hill Park and Blanshard Street. According to Colliers, the office vacancy rate in Victoria was 8.1% in Q3, the lowest in Canada. The average asking net rent in the city was $22.63/sq ft, compared with the national average of $21.45/sq ft.
Manulife is a global insurance and asset management company, and the largest insurance provider in Canada. As of Q3, it had $1.6tr in assets under management and administration. Roy Gori is president and chief executive of the Toronto-based company.
