Allied Properties REIT Puts $109M Into Play

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%.