The First Meadowvale Centre Phase 2 office tower in Mississauga, just west of Toronto, is being sold to True North Commercial REIT for $87.5 million.
The office property is the second purchased by True North (TNT.UN-T) as part of a previously-announced acquisition to deploy equity from its $80.5-million issue of units earlier in November. The REIT also purchased the Trillium Executive Centre, in Markham north of Toronto, with a portion of those funds.
The LEED Gold-certified, class-A First Meadowvale Centre Phase 2 was developed by Toronto’s First Gulf and opened in 2012. The 10-storey mid-rise is located at 6925 Century Avenue along the Highway 401 corridor.
It contains 252,200 square feet of space including what True North calls “modern common areas” and an on-site eatery.
The property is 7.24 acres, and offers a total of 895 parking stalls, including 68 underground stalls and 827 surface stalls.
First Meadowvale Centre 2 location
The location offers direct highway visibility along Highway 401, is a short walk from the Meadowvale GO Station and numerous MiWay bus connections. First Meadowvale Centre Phase 2 is part of a larger office campus in the area, which includes three other developments.
The surrounding neighbourhoods offer services such as hotels, restaurants, fitness facilities and major shopping centres.
With a weighted average remaining lease term of 7.2 years, the complex is fully occupied by what True North says is a strong-covenant tenant roster, anchored by Golder Associates and Intact Insurance.
True North is financing the transaction with first mortgage financing of $56.875 million, with the balance coming from its equity raise. Closing is expected to be on or about Dec. 12.
About True North
The REIT is an unincorporated, open-ended real estate investment trust based in Ontario. It currently owns and operates a portfolio of 47 properties consisting of approximately 4.2 million square feet in urban and select secondary markets across Canada.
The REIT is focused on growing its portfolio principally through acquisitions across Canada.