RioCan has completed its acquisition of the apartment and retail components at ePlace, a large mixed-use development located at the northeast corner of Yonge and Eglinton in Toronto.
According to a press release issued Friday, the purchase price of $114.1 million was determined based on cost plus $10 million for the apartment component, eCentral, and a seven per cent cap rate on the stabilized NOI for the retail component.
“This acquisition represents another important step forward in our transformation to a major market, mixed-use focused REIT,” said Ed Sonshine, the chief executive officer of RioCan. “RioCan recognizes the thriving, transit-oriented intersection of Yonge and Eglinton has significant income and value growth potential and we are well-positioned as the dominant landlord in the area.”
Residential leasing commenced at eCentral in December 2018 and is progressing ahead of both schedule and anticipated rental rates. As of Sept. 26, 2020, 72 per cent of the units had been leased at an average monthly rent of $3.88 per square foot for market rent units.
The 705,000-square-foot mixed-use development is comprised of 22,000 square feet of retail space, with 20,000 square feet of that space already sold out. Similarly, eCondos – a 58-storey, 623-unit condominium tower is also completely sold. Retail leasing at ePlace, the 36-storey, 466-unit rental residential tower, is now essentially complete with leases in place for a flagship TD Bank and food service tenants.
The development will have direct underground access to both the Yonge/University subway line and the future Eglinton Crosstown LRT. Adjacent to the retail space in ePlace, and across the street from Yonge Eglinton Centre, eCentral residents will have access to extensive retail and service options.
“ePlace joins, among others, Yonge Eglinton Centre, Yonge Sheppard Centre, King Portland Centre and The Well, all in Toronto, Ontario, as part of RioCan’s expanding portfolio of dynamic mixed-use urban assets,” said Sonshine.