- What Proreit has bought an industrial property in suburban Montréal
- Why A KingSett joint venture sold the property, at 2945 André Avenue
- What next Proreit also has agreed to sell a retail asset
A KingSett Capital joint venture has sold an industrial property in the Montréal suburb of Dorval to Pro Real Estate Investment Trust for $32.7m, Green Street News can reveal.
The 134,000 sq ft property, at 2945 André Avenue, is fully leased to national logistics company KD Services under a long-term agreement with annual rent bumps and a renewal option. KD has occupied the space since 2013.
The company financed the deal via a $21.2m five-year first mortgage at a rate of 5.10%, proceeds from property sales and a draw on its operating facilities. The purchase price represents a going-in capitalization rate of 6.7%.
RBC Capital Markets’ real estate group, in collaboration with Marcus & Millichap’s IPA division, marketed the property on behalf of KingSett and partner Beaulac Investments.
The property, with a warehouse clear height of 24-27 feet, is adjacent to Montréal-Trudeau International Airport.
Proreit also has closed the sale of two office buildings in Ottawa for a total of $26.6m.
The 94,000 sq ft, six-storey building at 2 Gurdwara Road was sold to Inside Edge Properties for $15.3m. Net proceeds were used to repay a $10.5m mortgage.
The property has a BOMA bronze certification and is close to Ottawa International Airport.
“We’ve always had an interest in the south node,” Jordon Bianconi, vice president of acquisitions and corporate development at Inside Edge, told Green Street News.
“With its proximity to the Ottawa Airport, there has been quite a bit of attraction there for us. This opportunity was brought to us off market and we acted on it quite quickly. We felt that it checked all of our boxes. I would say there’s a minimal amount of true Class A product in the south node available, and this is one of the assets that would fall within that realm.”
The 69,000 sq ft building at 1335 Carling Avenue was sold for $11.3m, with net proceeds going toward repaying an $8.2m mortgage.
Surplus proceeds are slated to be used to pay down the company’s credit facilities and for general purposes. After the deals, Proreit’s portfolio comprises 116 commercial properties.
Last month, the company agreed to sell an 11,000 sq ft retail property in Lacombe, Alta., for $5m. The transaction is slated to close in Q4.
Article updated at 4:04 p.m. ET on Sept. 20, 2024, to include additional details about the 2945 Andre Avenue transaction.
