Eight properties spread across the Greater Toronto Area being marketed by RBC, CBRE
CanFirst Capital Management has put eight Ontario logistics and industrial assets totalling 1.05 million square feet on the market through
RBC Capital Markets Real Estate Group and CBRE.
The properties are in key transportation corridors near 400-series highways, and in close proximity to good labour pools in Burlington, Mississauga, Scarborough, Etobicoke, Markham and Cambridge.
There are four single- and four multi-tenanted properties and 89 per cent of the warehouse space is mid- and large-bay.
The properties have extensive shipping and receiving capabilities, clear heights providing ample warehousing capacity, and varying unit configurations to accommodate a variety of occupier types.
Good income growth opportunities
The portfolio is 99 per cent leased to a high-quality and diverse tenant roster representing the energy, transportation and logistics, construction and building materials, and chemical technology sectors, among other industries.
Average in-place minimum rents across the portfolio are $12.51 per square foot, approximately 55 per cent below market rates.
The properties have a relatively short weighted average lease term (WALT) of 2.5 years, allowing a future owner to drive meaningful net operating income growth in the near term as leases expire and rents are rolled to market.
The Greater Toronto Area’s industrial leasing market continues to experience historically high average net rents and had a vacancy rate of just 0.8 per cent in the second quarter.
These factors are expected to spur strong interest in the properties from different types of investors. The preference is to sell the portfolio in its entirety, but consideration may be given to the right offers for either individual properties or clusters.
No bid deadline has been announced for the properties.
CanFirst and its funds
Toronto-based CanFirst, founded in 2002, is a commercial real estate private equity company that co-invests with institutional and private high-net-worth investors in industrial and office properties that have growth potential.
It’s involved with development, redevelopment, asset and property management, financing, leasing and construction.
The properties in the Ontario industrial portfolio that’s on the market were acquired through CanFirst’s closed-ended CanFirst Industrial Realty Fund (CIRF) program.
Seven CIRF funds have closed and CanFirst has recently been fundraising for CIRF VIII.
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