Concert’s CREC Commercial Fund LP has acquired a second boutique-type office property in a Greater Toronto Area west submarket in Mississauga.
The fund now owns the 99,828-square-foot, four-storey 6750 Century Ave. property in Meadowvale. The class-A building was constructed in 2009 and was acquired from Artis REIT, which has been undergoing a major strategic and portfolio reorganization during the past year or so.
“This is an exciting acquisition as it represents an excellent opportunity for the fund to deepen its holdings in the Meadowvale submarket with a quality office property while supporting Concert’s continued growth and expansion,” said David Podmore, Concert’s chairman, president and chief executive officer, in Tuesday’s announcement.
Concert paid $30 million for the property.
The 6750 Century Ave. property
6750 Century Ave. is a LEED- and Energy Star-certified office building on approximately 3.46 acres of land adjacent to a linear park system. It has 336 surface parking spaces, 20 of which are covered.
Concert says it is continuing to see strong demand for “high-quality, well-located suburban offices, where tenants benefit from decentralized office footprints that promote better work-life balance and offer shorter commute times for both staff and visitors, thereby helping to attract the best talent.”
The building currently has three vacancies comprising a total of about 20,000 square feet, which had been listed for lease by Artis. In an exchange of emails, Concert’s director of corporate communications John Corry said efforts will continue to onboard new tenants.
“We think there is an opportunity to launch a strong marketing and leasing program and appeal to a wide variety of tenants who can benefit from the already built-out and demised space,” he wrote.
The building is in an area which is already home to several multi-national companies and head offices including McKesson, Novo Nordisk, RBC, BMO and Intact, along with other financial, technology and pharmaceutical companies.
The tenant list at 6750 Century includes a diverse set of national and global companies including Whirlpool Canada’s head offices. It is already demised to accommodate a wide variety of tenants with unit sizes ranging from under 5,000 square feet to about 25,000 square feet.
Concert and Mississauga
It has easy connectivity to the 400 series highways and is located 18 kilometres from Toronto Pearson International Airport. Transit access is provided through the MiWay bus system and the Meadowvale GO Station, both within one kilometre.
“We are pleased to acquire another exceptional office building that enhances the ongoing investment and growth of our fund which is supported by our dedicated pension and institutional fund investors,” says Andrew Tong, managing director of the CREC Commercial Fund LP.
The property also adds to Concert’s Mississauga holdings. The firm also owns 2476 Argentia Rd., a 100,000-square-foot class-A building very close to the Century Avenue property, as well as several other GTA West office and industrial properties.
With its modern construction and and sustainability certifications, Concert’s initial focus will be to transition management of the building and integrate it into the fund’s holdings.
“Our current focus is to ensure that there is a smooth transition operationally,” Corry wrote. “Our goal is to provide an exceptionally high level of service to our existing tenants.
“Longer-term, this asset will be viewed as a hold for our Commercial Fund generating income for our pension and institutional investors.”
About Concert and CREC Commercial Fund LP
Concert has been involved in developing, acquiring and managing Canadian real estate since 1989. With over $8 billion in assets, Concert’s portfolio is backed and owned by over 200,000 Canadians, represented by union and management pension plans.
The firm is involved with rental apartments, condominiums, seniors’ active aging communities, industrial and commercial properties, and public infrastructure projects.
The fully subscribed CREC Commercial Fund LP is a diversified Canadian portfolio. With ongoing plans to expand, this open-ended, limited partnership fund invests in, and actively manages, industrial and office real estate in Canada.
The portfolio is managed by Concert Realty Services Ltd. and serves as Concert’s exclusive commercial platform.
The fund is supported by multiple Canadian pension funds and institutional investors.
The portfolio has an asset value in excess of $2.4 billion and over 11.6 million square feet of leasable area.