- What 5995 Avebury Road is in play at an 8% cap rate
- Why The suburban office building is 94% leased
- What next JLL has the assignment
QuadReal Property Group has put a suburban Toronto office building in play for $29m, Green Street News can reveal.
JLL has the assignment for 5995 Avebury Road in Mississauga. The valuation for the 145,000 sq ft building works out to $199/sq ft and would generate a first-year capitalization rate of 8%.
The nine-storey property was completed in 1990. It’s 94% leased to nine tenants, including Sharp Electronics and the Regional Municipality of Peel, and anchored by Finastra. The weighted average lease term is 5.8 years.
At $18/sq ft, in-place net rents are slightly below the suburban GTA average of $18.56/sq ft, offering a potential purchaser stable income in the short-term and future rental upside upon lease rollovers.
QuadReal has spent over $1.6m on capital improvements over the last five years, including introducing model suites, a conference room and tenant lounge. The building is LEED Gold, WiredScore Gold and BOMA Best certified. There are 593 parking stalls.
The office building is on nearly 7 acres at the intersection of Britannia Road and Avebury Road in the Heartland Business District. It’s within 1 km of Hurontario Street, Highway 401 and the future Hazel McCallion LRT line, and less than 6 km from Highway 403, Streetsville GO Station and Square One Shopping Centre. Several MiWay bus routes run nearby.
The office vacancy rate in the surrounding Heartland submarket was 13.9% in Q1, JLL said in a recent report, below the 17.6% average in the broader GTA West. The GTA West reported over 55,000 sq ft of positive net absorption for the quarter, with nearly 115,000 sq ft of office space under construction.
QuadReal is a real estate investment, development and property management company based in Vancouver. Helmed by chief executive Dennis Lopez and wholly owned by British Columbia Investment Management Corp., the firm has over $94bn in assets under management.
In late 2024, the firm sold Meadowvale Corporate Centre, at 2000 Argentia Road, to Aaxel Insurance for $40.1m. That asset is less than 6 km from 5995 Avebury Road.
Other recent office transactions in the Mississauga market include 5600 Cancross Court, which KingSett Capital sold to an owner-occupier for $32m in March, and Port Credit Corporate Centre, at 1599 Hurontario Street, which Davpart sold to a private investor for $12.3m.
