- What A 78,000 sq ft industrial property is on the market in Vaughan, Ont.
- Why Seller Northbridge Capital is looking for a 6% capitalization rate
- What next The property is 100% occupied with average lease terms exceeding three years
Northbridge Capital is looking to sell a multi-tenanted industrial property in Vaughan, Ont., at a 6% capitalization rate, Green Street News can reveal.
The Toronto-based private equity investment firm has floated 450-452 Bowes Road for $45m, seeking a valuation of $574/sq ft for the 78,000 sq ft, two-building asset. The property was put up for sale in late February with JLL taking on the marketing assignment.
There are 10 small-bay industrial units across the two buildings varying in size from 2,500 sq ft to 21,000 sq ft. The units are 100% occupied.
Tenants include a construction company, a recycling operation, a golfing software developer and a trucking company specializing in heavy equipment transportation. Average weighted lease terms run over three years at an average rate of $22/per sq ft. Leases contain built-in rent increases promising a stable cashflow for investors, marketing materials said.
The two buildings have a total of 26 shipping doors, eight of which are at truck level and 18 with drive-in access. There is a 23 ft maximum clearance height.
The property, spanning nearly 9 acres, includes roughly 3 acres of excess land used for outdoor storage.
Built in the mid-1990s, the buildings have undergone exterior renovations in the last few years, including asphalt replacement and installation of lighting and security systems.
The property, in the Concord neighbourhood, is close to several major Greater Toronto Area roadways. An onramp to Highway 407 – connecting to Highway 401 and other 400-series highways – is less than 2 km away via Dufferin Street.
Highway 7 is just over 1 km away via Rivermede Road. Toronto Pearson International Airport is 18 km away. The closest subway station is 3 km away at Vaughan Metropolitan Centre.
Small-bay industrial property pricing continues to rise in the GTA with valuations surpassing $500/sq ft in the core submarkets, including Vaughan.
Based in Toronto, Northbridge Capital has over 2m sq ft of commercial assets under management across North America. The firm acquired 450-452 Bowes in 2022 for $36.6m, according to Green Street’s Sales Comps Database.
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