Search
 

Allied Properties REIT Puts $109M Into Play

TORONTO-In the past two days, the REIT discloses plans for 521,375 sf of office space in Toronto and Montreal CBDs. The fast-paced buying kicks off a $61-million fund drive.

By Connie Gore | Updated on June 03, 2008

TORONTO-Settling into a quiet period, Allied Properties REIT has allocated $109 million in two days for 521,375 sf of class 1 office buildings on the fringes of the Toronto and Montreal CBDs. Just two days ago, the REIT hit the streets with a $61-million fund-raising drive, its second one this year to help cover the fast-paced buying spree.

Allied Properties REIT touts itself as the leading owner and manger of class 1 office properties in Canada. A market source in Toronto tells GlobeSt.com that the REIT specializes in off-market deals for high-quality, vintage brick-and-beam buildings that can be converted into loft-style offices or their sites scraped and rebuilt. He says the just-bought properties were all off-market pickups, predominately from families that had passed down the real estate for generations. He says the REIT has been averaging 6.5% cap rates on its recent deals.

Allied Properties Monday reported the fund-raising drive and disclosed deals totaling $72 million for a 130,532-sf building at 204-214 King St. West and 34,414-sf structure at 70 Richmond St. East, both in Toronto’s Downtown core, and a 251,345-sf, fully leased asset at 5505 Saint-Laurent Blvd. in Montreal. The deal, set to close in August, bears a cap rate of slightly more than 8%.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.