“It’s considered a blue-collar area, but there’s a very captive audience around it and it’s a very populated area. We were able to buy it at a very compelling price of about $80 a square foot, which is great.”
Mall is 94 per cent leased
The 219,109-square-foot mall is 94 per cent leased and sits on 15 acres of land. It has 44 units and is anchored by IGA, Cinémas Guzzo, Pharmaprix, Value Village, Dollarama and CIBC. It consists of a main L-shaped building, a triangular-shaped enclosed mall and one standalone pad.
“We’re going to inject a significant amount of capital into it and redevelop a portion of the mall and eventually add some pads,” said Saguy. “We have an elaborate business plan as to what we’re going to do, but it’s too early to say anything more specific.”
Strathallen Capital will act as asset manager and Strathallen Property Management Inc. will provide property management services.
Centre Jacques Cartier sits at the busy intersection of Chemin de Chambly and Rue Lamarre, and more than 600,000 people live within a 20-minute drive.
Strathallen Retail Property Fund LP No. 3
The property was purchased on behalf of Strathallen Retail Property Fund LP No. 3 (SRPF 3), an investment vehicle comprised of major Canadian pension fund investors and managed by Strathallen. SRPF 3’s mandate is to invest in Canadian retail developments and retail properties with leasing upside and redevelopment potential.
“It fits very well into our overall fund portfolio and we feel it complements and diversifies the Strathallen Retail Property Fund LP No. 3 portfolio on behalf of our investors,” said Saguy.
The portfolio has a stable of core properties and includes a value-add component for yield enhancement. The closed-end fund has the capacity to acquire more than $300 million in assets.
More acquisitions coming
Strathallen is working on raising capital for its fourth retail property fund and expects to raise another $200 million to $250 million.
The Toronto-based real estate services company purchased the unenclosed, 391,957-square-foot The Shops at Morgan Crossing in Surrey, B.C. on behalf of AIMCo Realty Investors LP for an undisclosed price in July. That pushed its assets under management to more than $1 billion.
“We’re on pace to have by far our two largest acquisition years in the history of the company,” said Saguy. “There are a number of impending acquisitions that are in the works and we’re hoping to continue the pace of growth that we’ve had over the last two years.”