Concert’s CREC Commercial Fund LP has entered into an agreement to purchase a 90 per cent interest in a one million square foot distribution facility in Ottawa – the largest in the National Capital Region – which is currently under construction and fully-leased to Amazon on a long-term basis. The Fund will be partnering with high-profile developer, Broccolini, which retains an interest in the project. CBRE Canada facilitated the deal in its role as advisor.
Situated in the City of Ottawa on an expansive 96.2-acre site, the distribution facility located at 5225 Boundary Road will be a best-in-class industrial facility serving as one of Amazon’s fulfillment centres in Canada.
The single-tenanted facility, which also includes 35,000 square feet of office and training space, features a 36-foot clear ceiling height, 99 truck-level doors and parking for more than 1,000 vehicles. Strategically located near a major interchange on the Trans-Canada highway, the flexibly-designed facility provides efficient access to major cities and population centres. The planned facility will support 600 full-time employees and will serve key markets in eastern Canada, including Ottawa and Montreal, which represent a population base of over five million.
“This is an exciting acquisition as it represents an excellent opportunity for the Fund to establish a foothold in the Ottawa region with a high-quality e-commerce industrial facility, while supporting Concert’s continued national growth and expansion,” says Brian McCauley, Concert’s president and CEO.
Upon completion of the construction of the project by Broccolini, Concert will enter into a co-ownership with Broccolini. Broccolini is currently overseeing the facility’s construction, which is scheduled to be complete in the second half of 2019.
“This deal represents a rare opportunity to strengthen our commercial income-producing property portfolio through the addition of an exceptional property and to partner with best-in-class, well-aligned groups in Broccolini and CBRE,” says Andrew Tong, managing director of CREC Commercial Fund LP.
With the acquisition of this unique facility, the Fund’s value will increase to approximately $1.6 billion and will include more than 9.3 million square feet of industrial and office properties.