- What Four-building, flex-office portfolio in Québec City and Lévis sold for $31.7m
- Why Portfolio was 94% leased at sale
- What next Sixteen tenants have a weighted average lease term of 4.5 years
HarveyCorp has paid $31.7m for a four-building, flex-office portfolio in Québec, Green Street News can reveal.
The 94%-occupied portfolio, totaling 260,000 sq ft in Québec City and Lévis, was sold by Pure Industriel. The purchase price translates to $122/sq ft.
CBRE and RBC Capital Markets brokered the deal, which closed on June 25.
Sixteen tenants pay an average rent of $13.36/sq ft and have a weighted average lease term of 4.5 years.
The largest building is a 102,000 sq ft property at 505 boulevard du Parc Technologique in Québec City. Built in 2002 and expanded in 2017, it is fully leased to Colliers subsidiary Englobe, a consulting firm in engineering and environmental management; Ciena, a networking systems and software company that generates USD$3.6bn annually; and Giroux Arpentage, which specializes in mining, hydroelectricity and engineering.
The 9-acre site has 330 parking stalls and is less than 1km from Highways 573 and 40. Some 87% of its floor area is offices, with the rest used as flex space.
The three buildings in Lévis, totaling 158,000 sq ft, are at 1984, 1986 and 1990 5e Rue, less than 2km from Highway 20. All were built between 2011 and 2014 on a nearly 13-acre lot divided into parcels. The properties share 680 outdoor parking stalls, marked by signage allocating spots to each building.
The 74,000 sq ft building at 1984 5e Rue is 77% leased and sits on 6 acres. The largest tenants – siding manufacturer Maibec and construction firm Sintra – occupy 35% of the gross leasable area. The rent roll also includes Garderie Les Petits Pinsons, Les Consultants Gen+, Le Groupe Master, PMT Roy, Stantec and Veolia. The building is 83% office and 17% flex space.
The 33,000 sq ft building at 1986 5e Rue, also built in 2014, is fully leased. Desjardins occupies 50% of the space, Venice Gym fills 31% and EXP rents 18%. The building, on 2 acres, is 69% office and 31% flex.
The 51,000 sq ft building at 1990 5e Rue, built in 2011 on 3-plus acres, is fully leased to two tenants. Société québécoise des infrastructures, a government body supporting public organizations in infrastructure projects, occupies 59%, and the remaining 41% is rented to global electronics manufacturer Eaton. Some 59% of the building is office space, and the rest is used for flex purposes.
Pure Industriel, headquartered in Toronto, specializes in industrial and flex assets across Québec. It is a Blackstone and Ivanhoe Cambridge portfolio company.
HarveyCorp is a Québec-based private investor focused on commercial real estate acquisitions in the province.
