MISSISSAUGA, ON, Aug. 3, 2017 /CNW/ - Morguard Corporation ("Morguard") (TSX: MRC) announced today that the real estate company has purchased 123 Commerce Valley Drive East, an 8-storey Class A suburban office building in Markham, ON. The acquisition was completed for a purchase price of $66.5 million, excluding taxes and transaction costs, and encompasses 203,500 square feet on 10.6 acres of land.
"The property on Commerce Valley Drive is a premium acquisition for Morguard, combining an excellent location, a solid existing tenant base and significant opportunity for additional future development," said K. Rai Sahi, Chairman and Chief Executive Officer of Morguard. "As one of the most prestigious office buildings in Markham, this high quality asset will provide a steady cash flow and a solid return on investment."
Prominently located between Leslie Street and Highway 404, just north of Highway 407, the property is easily accessible by both 400 series highways as well as local transit. The building is highly visible from the Highway 407/404 interchange, providing exceptional signage opportunity for anchor tenants.
The acquisition provides Morguard with a significant development opportunity for future growth. In-place zoning, surplus density and abundant existing parking give Morguard the potential for an additional 270,000 square feet of office space on the property.
Completed in 2000, the building offers tenants modern office interiors with floorplates averaging 27,000 square feet. 123 Commerce Valley Drive maintains an extensive tenant list from a wide range of industries, including industrial products, financial services, medical and software development. This diverse tenant mix results in stable income performance. The shortage of large contiguous Class A space in Markham will also provide extra leasing momentum for new commercial development.
"This premier acquisition supports Morguard's long-term strategy of investing in diversified, high-quality assets in North America," said Sahi.
Morguard Corporation is a major North American real estate company. It has extensive retail, office, industrial, multi–suite residential, and hotel holdings owned directly, or through its investment in Morguard REIT (TSX: MRT.UN), Morguard North American Residential REIT (TSX: MRG.UN) and Temple Hotels Inc. (TSX:TPH). Morguard also provides real estate management services to institutional and other investors. Morguard's owned and managed portfolio of assets is valued at $21.9 billion.
SOURCE Morguard Corporation
For further information: K. Rai Sahi, Chairman and Chief Executive Officer, 905-281-3800; Paul Miatello, Chief Financial Officer, 905-281-3800