by Francis Monfort
Morguard has acquired a suburban office building in Oakville, ON, for a purchase price of $18.5 million, excluding taxes and transaction costs, the company announced.
Argus Corporate Centre is a five-storey class A office building. The building offers a convenient location near to a rail transit hub and easy access to a number of highways. The property also offers signage and promotional opportunities for tenants with its high visual exposure to a highway.
"An excellent location and a solid existing tenant base make the Argus Corporate Centre a valuable acquisition for Morguard," said K. Rai Sahi, chairman and CEO of Morguard. "This acquisition supports our long-term strategy of investing in diversified, high-quality assets in North America that will provide a steady cash flow and a solid return on investment."
The building is located in Midtown Oakville, which has been designated by the Province of Ontario as an urban growth centre under its development plan. The neighbourhood surrounding the property is targeted for residential and commercial intensification by the city along with transit and infrastructure investment. As part of the development plan, the property will be re-zoned to have the highest commercial density with the plan’s coverage.
"Investment from the City of Oakville and the Province of Ontario in the infrastructure and transit surrounding the property makes the Argus Corporate Centre a key strategic acquisition," said Sahi. "The property's central location within the Midtown Oakville development zone provides excellent long-term growth and development potential for Morguard."
The property is already fully occupied. Tenants come from a variety of industries such as video game development, independent medical services, software development, and legal services. The proposed improvements under the development plan as well as the property’s proximity to Sheridan College will continue to make the property attractive to tenants, Morguard said.
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