Crestpoint Real Estate Investments Ltd. says it has topped the $2-billion mark in acquisitions over the past 12 months with the announcement it has bought the 25-storey 121 King St. W. office tower in Toronto’s financial district.
Toronto-based Crestpoint says it made the investment in the property on behalf of its open-ended Crestpoint Core Plus Real Estate Strategy Fund and an unnamed institutional partner. Together, they acquired a 100 per cent interest in the property.
Financial details were not released.
121 King St. W. is a 540,000-square-foot, class-A building located a block from the Bay Street intersection. Recently renovated, the tower is LEED EB Gold, BOMA BEST Gold, Wired Score Platinum, Fitwel Viral Response and Rick Hansen certified.
“Over the past year, we have grown the portfolio significantly and added landmark, high-quality properties like 121 King Street and the Amazon distribution centre in Ottawa,” said Kevin Leon, president and CEO of Crestpoint, in the announcement Wednesday afternoon. “The ability to add a Toronto financial core building connected to the PATH system in such a strong location, with high-quality tenancies further elevates the profile of the Crestpoint Core Plus Real Estate Strategy portfolio.”
121 King offers great transit access
121 King St. W. provides direct access to Toronto’s underground PATH system and a variety of retail and entertainment amenities. It is also well served by transit, including direct access to the St. Andrew subway station, the King streetcar route and GO Train service from nearby Union Station.
Tenants include federal government agencies and the National Bank of Canada.
“With our active management approach, we look forward to creating a dynamic workplace for the tenants that call 121 King Street home and we are optimistic the long-term market for high-quality office buildings in downtown Toronto will flourish,” Leon said in the release.
“The Crestpoint Core Plus Real Estate Strategy continues to offer investors access to a well-diversified, high-quality portfolio which continues to perform extremely well.”
Colliers assisted with due diligence and acted as an advisor to Crestpoint on the deal. Property management services will be provided by JLL.
The closing of the 121 King St. W. acquisition brings Crestpoint’s total assets under management to over $8 billion and 30 million square feet. It also caps off a very active 12 months for the firm, with that $2 billion of acquisitions involving assets in the office, industrial, retail and multiresidential sectors.
This includes several major properties.
The Amazon acquisition involved the country’s largest fulfillment centre, a multi-level, 2.8-million-square-foot building which was just completed in the Ottawa community of Barrhaven. Crestpoint paid $494 million for a 90.1 per cent share of the facility, with developer Broccolini retaining the other interest in the property.
Crestpoint and several partners also acquired the Place de Ville office complex in downtown Ottawa in late 2021 for $350 million. The property spans two city blocks not far from Parliament Hill. Crestpoint took a 50 per cent interest in the acquisition.
The acquisitions have added over 5.6 million square feet to its portfolio.
Crestpoint Real Estate Investments Ltd. is a commercial real estate investment manager offering a diversified portfolio of commercial real estate assets.
Crestpoint is part of the Connor, Clark & Lunn Financial Group, a multi-boutique asset management company that provides investment management products and services to institutional and high net-worth clients.
With offices across Canada and in Chicago, London, and Gurugram, India, Connor, Clark & Lunn Financial Group and its affiliates collectively manage approximately $104 billion in assets.