BGO has acquired a 640,000-square-foot distribution centre at 11400 Steeles Ave. E., just northwest of Toronto, for $143 million from IG Wealth Management’s IG Mackenzie Real Property Fund.

“We submitted a bid that we thought was reflective of the risk profile of the asset, and we were pleased to be the successful purchaser of the property,” BGO principal of portfolio management Adam Hagedorn told RENX.

“There was definitely institutional interest in the opportunity. Our position was to try to put forward a quick closing period, so we believe that’s one of the reasons we were successful.”

The building is fully leased by Relay Logistics and Speedy Transport.

The property’s attributes

CBRE brokered the deal for the crossdock facility, which was built in 2016 by Broccolini and sits on 33.5 acres of land. It fronts Highway 401 and offers convenient access to other major highways, intermodal rail hubs and Toronto Pearson International Airport.

The building has a 36-foot clear height, 110 dock doors and four drive-in doors. There are 94 trailer stalls and 514 parking stalls. 

“We have a desire to acquire high-quality industrial real estate across Canada and focus on assets that have modern specifications, good clear heights and functional warehouses, and trailer storage is always a bonus,” Hagedorn said. 

“This opportunity checked a lot of those boxes for us and we felt pretty compelled with the opportunity and feel like it's a good addition to our portfolio.”

BGO’s Canadian industrial real estate portfolio

BGO’s Canadian industrial real estate portfolio encompasses approximately 32 million square feet.

The company’s industrial investment strategy includes small-, mid- and large-bay buildings close to highways and other transportation nodes as well as proximity to labour and consumers. 

“There has been some softness and challenges in the Ontario market but we fundamentally still believe in the long-term demand for industrial real estate,” Hagedorn said.

Toronto's industrial availability rate was down slightly to 5.1 per cent in Q3 according to data released this week by CBRE (with vacancy at 4.1 per cent). Net absorption in the quarter was just under 1.7 million square feet, with deliveries of almost 1.5 million square feet of new space.

The Greater Toronto Area market has been largely stable for the past year of so after availability rose in late 2023 and into early 2024.

“We believe that the evolution of e-commerce within Canada is going to continue and drive continued need for industrial demand," Hagedorn said. "We also see the long-term tailwind of Canadian economic and population growth driving continued need for functional, high-quality industrial space.”

BGO is continuing to seek opportunities to acquire high-quality industrial offerings and investment opportunities for clients it manages capital for throughout this year and into 2026, according to Hagedorn.