Allied Buys Toronto Hub 151 Front St. for $192M
151 Front Street, which was at first called the Canadian Countrywide Express Building and York Teamway, was last bought in 2004 by an investment group controlled by Northam Property counsels from Trizec Properties for $59 million. Originally made to house telegram apparatus, the property operated as a mixed-use facility for over 4 decades till it was acquired by Trizec in 1997.
The company then redeveloped the building to provide telecoms services. More lately, some information center tenants at 151 Front Street, including PEER one, went offline in July after the building suffered a fire in an electric room found on the eighth floor. The specialised brick-and-concrete office building will function as a great asset to associated in servicing its Toronto target audience, downtown west. The property has turned into a leading location in Canada for telecommunication and IT service suppliers.
“The property fits inside our investment and operating focus, very like our property at 905 King Street West in Toronto and portions of Cite Multimedia in Montreal, which also provide specialised facilities for telecomms, networking and PC equipment,” claims Michael Emory, president and Boss man of associated. “Because of predicted increases in requirement for space in the property, we suspect we will enhance the net operating income over a period.
We also believe possession of the property will brace the competitive position of our fifty six other office properties in central Toronto”. The property also includes surplus land on which 750,000 sq. feet can be developed for office and retail use. According to associated, the $192 million acquisition price relies on a ten % capitalization rate applied to the in-place yearly net operating revenue from the property.
The company will also finance some of the acquisition price thru a $96 million mortgage, while issuing $125 million in stock the month after next. Associated Properties REIT provides Class I office space in Canada, with properties in Toronto, Montreal, Winnipeg, Quebec Town and Kitchener-Waterloo.