The 20-storey, 110 Yonge St. office tower. (Google Maps)

Sutter Hill Developments has demonstrated its confidence in the post-COVID downtown Toronto office market with its acquisition of a 50 per cent interest in 110 Yonge St., a 20-storey class-A tower.

Sutter Hill made the $58-million acquisition from a client of BentallGreenOak. The other 50 per cent interest in the property is held by Choice Properties Real Estate Investment Trust, which is also the building manager.

“Commercial real estate will continue to be an outstanding investment, especially with trophy assets in major cities,” said Karim N. Kanji, president and CEO of Sutter Hill, in the announcement. “As tenants’ needs are ever evolving, we are at the forefront of meeting those demands with premier buildings and centre-ice locations. Our forward-thinking approach has positioned us well for the strong recovery that we anticipate.”

Sutter Hill’s newest addition contains 160,000 square feet of leasable space, with three levels of underground parking and a connection to PATH: Toronto’s extensive underground and indoor pedestrian walkway network.

Perkins + Will a major tenant

The building is a mid-century construction, but offers a column-free design and unobstructed views north along Yonge Street. It is located at the corner of Adelaide Street.

“Many businesses are reviewing their real estate needs and will be looking for the best the market can offer,” Kanji said in the release. “Leveraging new technology to provide a safer, and healthier, environment will be a top priority for tenants.”

Among its major tenants is the Toronto office of international design firm Perkins + Will, which moved into the completely refurbished 8,500-square-foot 12th floor in 2019. That renovation work led to both LEED v4 ID+C certification and Fitwel v2 certification for the facility.

Although Sutter Hill did not immediately release any plans for improvements at 110 Yonge, the firm says other properties it owns have been fitted with upgrades such as new UV lighting and activated carbon air purifiers, more energy efficient LED lighting in common areas, and Touch-To-Go Touchscreens in elevators.

About Sutter Hill

Sutter Hill is a family-owned, Toronto-based real estate development, investment and property management company which was founded in 1956. It has operations in the U.S. and several Canadian provinces.

Its strategy is to acquire properties and unlock value either through wholly owned assets or partnerships. Sutter Hill owns and manages a wide range of properties from office and senior care to retail and multifamily residential.

Developments include Glen Abbey golf course, Limeridge Mall in Hamilton and 30 St. Clair West in Toronto.

Sutter Hill has transacted over $1.2 billion since 1992 and currently owns over a half billion dollars of assets equally split between Canada and the U.S.