Toronto’s commercial market continues going from strength to strength, as attested to by the steady stream of investments in the city’s assets.
Among the latest of these was RioCan Real Estate Investment Trust’s announcement of its acquisition of a 50% co-ownership interest in 2323 Yonge Street.
The transaction was valued at $27.1 million. The purchase was for an eight-storey Class B office building that offers around 67,400 square feet of commercial space.
RioCan CEO Edward Sonshine hailed the acquisition as a vital addition to the REIT’s commercial footprint in the robust Toronto market.
“This acquisition enhances RioCan’s dominant presence in the Yonge Eglinton transit hub right at the heart of mid-town Toronto. RioCan owns not only the northeast and northwest corners of the thriving intersection through ePlace and Yonge Eglinton Centre, but now owns another key asset further north on Yonge Street in this major urban corridor.” Sonshine said.
“It represents another important step in expanding our dynamic portfolio of urban mixed-use assets in Canada’s major markets, particularly in the ever growing Greater Toronto Area.”
The announcement touted the asset’s particularly strong prospects.
“RioCan believes that there is substantial potential in the property, in part due to the significant demand for office space in the Yonge Eglinton corridor. All of the property’s leases are set to expire over the next five years and have sizeable rent growth potential on lease renewals,” the company stated.
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