Allied Properties REIT (AP.UN-T) has acquired or entered into firm agreements to acquire a series of commercial and residential properties in Calgary, Vancouver and Toronto for a total of $94 million.
The properties are: a 50 per cent interest in the Sherwin Block at 738 11th Ave. SW, in Calgary; 2233 Columbia St. in Vancouver; 1050 Homer St. in Vancouver; and ancillary residential properties in Toronto.
“These are strategic acquisitions for Allied, in that we’re augmenting important assemblies in Toronto and Calgary and increasing our penetration in urban Vancouver,” said Michael Emory, president and CEO of Allied, in a release announcing the transactions. “The Sherwin Block has become part of our expanding GM Glenbow assembly with First Capital. 2233 Columbia is our first acquisition in Mount Pleasant, and 1050 Homer is a premiere class-I building in Yaletown with significant expansion potential.”
Located on Calgary’s Beltline, across 7th Street SW from the GM Glenbow assembly and south of Five Roses (both of which Allied owns in a joint venture with First Capital), the Sherwin Block is comprised of 30,948 square feet of gross leasable area and 23 surface parking spaces. It is fully leased.
Allied says the property has minimal intensification potential, but ownership enables Allied and First Capital to benefit from a “good current yield” and the potential intensification of GM Glenbow and Five Roses in the future.
Allied’s Vancouver acquisitions
Located on the southwest corner of Columbia and West 6th Avenue, 2233 Columbia is comprised of 28,443 square feet of GLA and 25 underground parking spaces. It is also 100 per cent leased.
While also having minimal intensification potential, ownership of the property is intended to lead to a larger presence in the Mount Pleasant neighbourhood. The area is undergoing both a rejuvenation due to an influx of tech companies, and intensification as land-constrained Vancouver seeks areas for new development and redevelopment.
“Mount Pleasant is a vibrant and eclectic area known for its unusual stores, heritage buildings, artists and arts-focused festivals. It is a popular area for first-time homebuyers and urban professionals,” Allied says in its release. “With ever-increasing frequency, knowledge-based organizations are locating in the area.
“Mount Pleasant bears notable similarity to King and Spadina in Toronto and Mile-End in Montréal.”
1050 Homer is also tier-one, class-I building in the heart of Yaletown, just off Nelson Street. The building is comprised of 41,868 square feet of GLA. The property has significant intensification potential that which Allied intends to realize through the addition of multiple floors.
The ancillary residential properties, Sherwin Block and 2233 Columbia were or will be unencumbered on closing, Allied says. It financed, or will finance, the acquisitions from its unsecured line of credit.
1050 Homer will be financed partially by a $13.6-million first mortgage at 4.3 per cent annual interest. Allied will finance the equity component of the acquisition from its unsecured line of credit. The acquisition is scheduled to close May 27.
Allied is a leading owner, manager and developer of distinctive urban workspace in Canada’s major cities, and network-dense urban data centres in Toronto that form part of Canada’s hub for global connectivity.
Allied’s business is providing knowledge-based organizations with distinctive urban environments for creativity and connectivity.