UPDATED: Crown Realty Partners has completed the largest acquisition in the firm’s 20-year history, a 1.2-million-square-foot office community in the Heartland Business Community of Mississauga.
The $252-million investment is being made on behalf of two of Crown’s value-add funds, Crown Realty IV and Crown Realty V Limited Partnership.
The price equates to about $219 per square foot, according to data in Avison Young’s quarterly GTA investment report. Orlando Corp. was the vendor, the report indicates.
The portfolio of five class-A buildings sits on a 50-acre property and also includes food service and a retail bank branch among its amenities. The buildings are:
– 100 Milverton Dr., a nine-storey, 226-533-square-foot mid-rise tower;
– 5770 Hurontario St., an 11-storey, 241,562-square-foot tower;
– 55 Standish Ct., the largest of the properties at 491,454 square feet over 12 storeys;
– 90 and 110 Matheson Blvd. W., which are each three storeys and comprise just over 186,000 square feet of space. They are part of a connected, three-building cluster with 100 Milverton.
Financial details were not disclosed.
Location in GTA West business hub
The portfolio is situated along the prominent Hurontario corridor in one of the Greater Toronto Area’s “most dynamic” west-end business nodes, the announcement said.
“Crown has been a long-time player in suburban GTA,” Crown managing partner of investments Emily Hanna in an exchange of emails with RENX. “Crown has had success with other assets acquired on behalf of our funds in the GTA West and this portfolio checks all the right boxes to ensure a successful suburban office repositioning strategy.
“The transit, connectivity and access of this portfolio all contribute.”
Among its current features are:
– proximity to 400-series highways, public transit, and the future Hurontario LRT;
– on-site fitness centres, collaborative spaces and daycare;
– electric vehicle charging stations and access to greenspace.
Each building has its own distinct property profile with the community, which will appeal to a wide array of businesses and office users, Crown believes. The properties can accommodate flexible office designs up to 85,000 square feet in size.
Portfolio to be repositioned
“In line with the mandate of the value-add funds, we do have some leasing to be done, in conjunction with our capital program,” Hanna said.
“Our repositioning plan is geared towards elevating the workplace experience for tenants and attracting top businesses and talent,” said Scott Watson, managing partner, acquisitions and leasing, in the announcement.
The buildings are already LEED and BOMA BEST certified, but Crown says its repositioning plan includes additional ESG-focused initiatives.
“We are also excited because for these assets, we are at an inflection point for them and believe we can introduce some thoughtful upgrades that will have an impact on the overall energy usage and emissions of the assets,” Hanna noted.
Among these will be assessments to enhance energy savings and reduce GHG emissions; upgraded collaborative zones and environmentally friendly, move-in ready office suites; and the rollout of Crown’s digital tenant app, Connect by Crown.
“This portfolio aligns with our strategy of acquiring and investing in properties to increase their long-term value and resiliency. Improving and building upon the environmental, social and governance credentials of these buildings will be key for their future value,” Hanna said.
“Our team has already identified upgrades that could result in 20% energy savings and emission reductions.”
About Crown Realty Partners
Crown is an integrated commercial real estate investment and management firm focused on value-add opportunities across Canada, with approximately $3 billion of real assets under management.
The firm was founded in 2001.