The True North Commercial Real Estate Investment Trust will be acquiring an office in Fredericton, New Brunswick for approximately $17 million.

The purchase price represents an implied capitalization rate of approximately 7.1 per cent.

The building, located at 551 King Street in downtown Fredericton, has 84,915 rentable square feet. Built in 2002, it has 100 per cent occupancy, with an average lease term of 8.9 years remaining. The properties’ tenants include the Government of New Brunswick and the National Bank of Canada.

“We are very pleased to acquire this off-market office property which meets the REIT’s acquisition criteria and will help to contribute to the overall quality of the REIT’s portfolio,” says Daniel Drimmer, CEO of the REIT and chairman of the Board of Trustees. “This acquisition strengthens the REIT’s presence in New Brunswick and confirms our ability to execute on our stated strategy of acquiring quality properties at competitive capitalization rates that are accretive to the REIT’s key operating and financial metrics.”

Completion of the acquisition is expected to take place on Nov. 13, 2013.