Fresh off of selling the former Toys “R” Us Greater Toronto Area warehouse and headquarters in March, Toronto-based Pure Industrial has acquired two large properties in Ontario.

Taken private in May 2018 by American investment giant Blackstone and the Quebec pension fund now known as La Caisse, Pure Industrial has acquired both properties from California-based industrial real estate developer Panattoni for a total of $286.5 million, RENX has learned.

The first property, located at 4670 and 4680 Garrard Rd. in Whitby, was held under CSPAC Industrial Garrard LP and acquired by Pure Industrial for $190.5 million.

The second property, located at 2260 Matheson Blvd. E. in Mississauga, was held under CSPAC Industrial Matheson Blvd LP and acquired by Pure Industrial for $96 million.

RENX reached out to both Pure Industrial and Panattoni for comment about the transaction, but has not received a response from either company.

4670-4680 Garrard Rd.

The Whitby sale was brokered by Matt Picken, Bryce Gibson, Bryan Li, Jared Cowley, Vienna Loo and Adam Budd of JLL and was marketed as a “trophy” asset and “premier investment opportunity,” according to the sales brochure.

The 35.6-acre property is home to a 126,556-sq.-ft building at 4670 Garrard Rd. and a 650,484-sq.-ft building at 4680 Garrard Rd., for a total of 777,040 square feet, which translates to a sale price of roughly $245 per square foot. The buildings completed construction in 2023 and 2024, respectively.

The property is 100 per cent leased to just two tenants. The smaller building is leased to packaging products company Atlantic Packaging while the larger building is leased to paper products company Kruger Products. The combined weighted average lease term is 5.4 years and in-place rents have annual escalations, according to JLL.

“Strategically located in one of the GTA’s most active industrial nodes, the site offers exceptional connectivity to key transportation routes and logistics hubs, along with access to major consumer markets and an expansive labour pool,” said JLL, which also notes the property provides 379 vehicle parking stalls and 265 trailer stalls.

2260 Matheson Blvd. E.

It’s unclear who brokered the sale of the Mississauga property, but Panattoni had previously published a marketing brochure in 2019 describing the property as “the last remaining site for development in this size range in this market.”

The property is located within the Airport Corporate Centre, which “offers superior connectivity to all GTA markets and to US border crossings,” and spans 308,545 square feet, which translates to a sale price of $311 per square foot.

“Mississauga is the largest industrial market in Canada and has a current estimated population of 770,000 people, which makes it the 3rd largest city in Ontario and the 6th largest in Canada,” Panattoni's brochure said. “With unparalleled access to public transit and proximity to various major 400 series highways, the site can draw from the substantial labour pools of Mississauga, Brampton, Caledon, Toronto and the Region of Halton.”

In 2020, Panattoni told RENX it was building the project on spec, but it had leased the property to logistics service provider Metro Supply Chain Group.

GTA industrial market

The transaction is one of the largest industrial sales of the year, so far. At a total of $286.5 million, the deal surpasses the four-property portfolio transaction that saw Cadillac Fairview acquire 2425-2475 Meadowpine Blvd. and 2510- 2520 Royal Windsor Dr. in Mississauga from Carterra for $195,240,000.

The aforementioned sale of the Toys “R” Us facility at 2777 Langstaff Rd. in Vaughan, by Pure Industrial to Toro Aluminum for $134.7 million, rounds out the top three.

According to Colliers’ Q1 GTA industrial report, absorption declined from 4.1 million sq. ft. to 2.7 million sq. ft. since the previous quarter, but it nonetheless represented the third-highest quarterly total since 2022.

“A significant portion of this absorption was driven by the leasing of vacant space, with approximately 2.5 million sq. ft. removed from availability across the GTA,” Colliers reported. “This activity was led primarily by the West and East markets, where multiple transactions exceeding 400,000 square feet were completed.”

Colliers also noted rental rates declined for the 10th consecutive quarter, adding that new supply often elevates the overall average. That has not been the case lately, primarily because less than one million sq. ft. of new supply was delivered in Q1. Overall, there is approximately 10.1 million sq. ft. under construction and Colliers is observing more construction starts.

“Economic uncertainty a year ago limited construction starts; however, increased market clarity has encouraged developers to restart projects that had previously been on hold, a trend expected to continue," Colliers Q1 report states. "One year ago, approximately 50% of the under-construction pipeline was in the West; today, the West accounts for nearly 70% of the GTA development pipeline, which may create an imbalance in those markets.”