A tract of future industrial development land across from the planned new CN intermodal terminal in Milton has sold for $165 million – more than 10 times what it was acquired for six years ago.
A syndicate of private investors sold the three parcels of land totalling 200 acres, in the western part of the Greater Toronto Area (GTA), to a group of private developers.
Anatolia Group Inc. (Locke General Partner Inc.) purchased the land at 5244 Tremaine Rd. from T2AC Holding Inc., according to data supplied to RENX by Altus Group’s RealNet.
The vendor originally acquired the site in July 2015 for $15.8 million, representing a price per acre of $79,165. This latest sale prices each acre at $826,732.
“It was always part of the investment strategy to acquire the land, hold it and then ultimately sell it to a developer,” Colliers associate vice-president and sales representative Jared Cowley, part of the team that brokered the transaction, said in an interview with RENX.
“The overall market, demand for industrial development sites and its strategic location right across from the future CN intermodal (made it attractive to the purchasers),” according to Cowley.
The site was marketed by Colliers for a month and the submission deadline for letters of intent from potential purchasers was July 27. The deal closed earlier this month.
“There was a very strong interest level, from private developers to institutional groups, from across Canada,” said Cowley. “It was highly sought after. There are developers buying in the immediate area and the future CN intermodal drove interest and activity on the site.”
Milton lands and CN intermodal hub
The lands on the west side of Tremaine Road, south of Britannia Road and north of Lower Base Line, are comprised of the 94-acre parcel A, the four-acre parcel B and the 101-acre parcel C.
While they’re currently zoned agricultural, they’re designated for future employment in the regional official plan.
The new owners will need to work with the applicable governing bodies to determine how much of the land can be developed.
No applications have yet been submitted to the Town of Milton’s planning department, but it’s likely the development will involve multiple buildings that would probably be used for distribution purposes.
It’s expected to take two to three years to develop the property, according to the Altus Group research.
The lands are adjacent to the CN intermodal hub which is to be developed into a 535-acre business park. CN plans to invest $250 million in the project which could handle four intermodal trains per day.
The terminal is the subject of an ongoing court challenge by Halton Region and several other parties, though it has received approval from the federal government.
One intermodal train, carrying shipping containers that can easily be transferred to or from trucks or ships, can transport the equivalent of more than 280 long-distance heavy trucks.
The CN intermodal hub will bring new infrastructure to enhance accessibility, including Tremaine Road being widened with a new interchange linking it directly with Highway 401.
The Town of Milton has a population of more than 140,000 and is the fastest-growing community in the GTA. It’s home to many large industrial occupiers and its supply of employment land is quickly diminishing.
Other Milton-area industrial developments
Several large industrial construction projects are being built on spec in the Milton area and are scheduled for completion at various intervals through the end of 2023. They include:
– Triovest’s 154,640- and 92,075-square-foot buildings on Cleve Court;
– Menkes’ 377,524-square-foot building at 8205 Parkhill Dr.;
– Orlando Corporation’s 444,771-square-foot building on Reading Court;
– Prologis’ 372,620-, 459,360- and 463,680-square-foot buildings at Trafalgar Road and Steeles Avenue;
– Oxford Properties’ 322,851-, 1.01 million- and 164,104-square-foot buildings at James Snow Parkway and Fifth Line;
– and QuadReal’s 829,919-square-foot building at 12409 Steeles Ave.
EDITOR’S NOTE: This article was amended after publishing to remove the name of an entity not directly connected to this transaction. As identified in the article, T2AC Holding Inc. is the vendor. Updated information about the status of the approvals process for the proposed CN intermodal terminal was also added.