- What LaSalle Investment Management has floated 275 Slater Street
- Why The office building is 83% leased
- What next CBRE’s National Investment Team has the assignment
LaSalle Investment Management is looking to offload an office building in downtown Ottawa for approximately $45m, Green Street News can reveal.
CBRE’s National Investment Team has the assignment for 275 Slater Street. The valuation translates to a first-year capitalization rate of roughly 10%.
Guidance for the 236,000 sq ft asset works out to $191/sq ft. It’s free and clear of financing.
Completed in 1968, the property is 83% occupied with a weighted average lease term of 4.8 years. Tenants include the Canadian Chamber of Commerce, the Embassy of Italy and MBM Intellectual Property Law.
Per marketing materials, a lease-up strategy, dubbed “Ready-Office,” resulted in seven new deals in 2024. The program provides pre-constructed, occupancy-ready suites. Build-out costs, including furniture, are approximately $60/sq ft, and construction time is roughly 60 days.
Building amenities include a fitness centre, a conference room and a ground-level Tim Hortons. There are 190 parking spaces across a five-storey garage.
LaSalle has spent $2.4m on building improvements over the past five years, including upgrades to enhance sustainability and energy efficiency. 275 Slater Street is certified LEED platinum and has achieved Energy Star certification annually since 2020.
At the corner of Slater Street and Kent Street, the office building is within 500m of Parliament Hill and the Parliament and Lyon LRT stations. It is within a kilometre of Ottawa City Hall, the CF Rideau Centre and the Québec-U.S. border.
It is also 375m from 150 Slater Street, which CBRE is marketing for approximately $143m on behalf of Manulife Investment Management.
LaSalle has shed a number of assets across Ontario over the last year, including 5575 North Service Road, which sold for $12.5m; 1100 Burloak Drive and 5420 North Service Road, which traded for $30.2m; and 135 Rideau Street, which netted $8.5m. The firm has also listed 5655 Timberlea Boulevard for $10.3m and 150 Commerce Valley Drive West for $55m.
LaSalle is an independent subsidiary of JLL. Mark Gabbay is global chief executive of the Chicago-based company.
