Allied Properties Real Estate Investment Trust (Allied) announced it has acquired 56 The Esplanade in Toronto for $60 million.
Located on the north side of The Esplanade, the property is a Class I building situated on 26,261 square feet of land. Built in 1903 for a manufacturer of flour milling equipment, the building was renovated and retrofitted over the past three decades. It spreads across 76,112 square feet of gross lease area that is 98 per cent leased to tenants.
“This is a strategic acquisition for Allied, in that it augments a large assembly we’ve made over time in the St. Lawrence Market area,” said Allied President and CEO Michael Emory. “It affords us a reasonable current yield, as well as a property-specific intensification opportunity and a larger intensification opportunity that we can pursue in conjunction with 35-49 Front East, the assembly we own to the north of the property. We do not expect to pursue either intensification opportunity in the near term.”
The property will augment Allied’s ownership 35-49 Front East, which is made up of properties with historically designated facades and includes 227 feet of uninterrupted frontage on the south side of the street and 39,203 square feet of underlying land.
Allied has owned 35-45 Front East since its IPO in 2003, 49 Front East since 2010 and 47 Front East since 2016.