Toronto-based Cadillac Fairview — the wholly-owned real estate subsidiary of the Ontario Teachers' Pension Plan — is looking to sell the Yonge Corporate Centre in North Toronto, according to a listing that was made public recently.
The Yonge Corporate Centre is a sprawling office campus that consists of three six-storey office buildings located at 4100, 4110, and 4120 Yonge Street.
The campus sits on a sprawling 7.79 acres, was constructed between 1985 and 1989, and houses of a total of 649,808 sq. ft of Class A office space split relatively evenly across the three office buildings.
The campus also includes a smaller heritage building at 4150 Yonge Street that is currently occupied by Auberge de Pommier, a French restaurant. The building includes 7,992 sq. ft of space, bringing the total amount of leasable space at the Yonge Corporate Centre to 657,800 sq. ft.
The campus provides 1,293 vehicle parking spaces — a ratio of 1.97 stalls per 1,000 sq. ft — both in an underground parkade and above ground. Additional amenities include a Tim Hortons and a fitness centre that are both housed within 4110 Yonge Street.
According to the sales brochure, Cadillac Fairview has invested over $10 million towards improvements in the Yonge Corporate Centre since 2020, and the campus is LEED Gold certified according to the Canada Green Building Council.
The Listing
Last week, the Yonge Corporate Centre was jointly listed by CBRE Toronto's National Investment Team and TD Cornerstone Commercial Realty, who called the property a "trophy" asset available at "substantially below replacement cost."
- Address: 4100, 4110, 4120, 4150 Yonge Street
- Year Built: 195
- Net Rentable Area: 657,800 sq. ft
- Price: Unpriced
- Listed By: CBRE (Peter Senst, Jaysen Smalley, Kai Tai Li) and TD Cornerstone (Ashley Martis, Elliot Medoff, and Alexandra Ivashenko)
This appears to be at least the second time Cadillac Fairview has tried to sell the Yonge Corporate Centre, which was listed by CBRE and TD Cornerstone two years ago as well.
According to their sales brochure, the campus is currently 83% occupied, with a weighted average lease term of 3.6 years.
The Yonge Corporate Centre at 4100-4150 Yonge Street in North Toronto. / CBRE, TD Cornerstone
Notably, the transit-oriented site — a pedestrian tunnel links the site to York Mills TTC Station — carries significant potential for intensification or redevelopment, according to the brokers.
"In the short term, there is the opportunity to leverage existing vacancy and sublease arrangements at 4100 Yonge Street to pursue a relocation and consolidation strategy, moving existing tenants to locations within 4110 & 4120 Yonge Street," the brokers said. "This would unlock the opportunity to construct a three-tower redevelopment, totalling almost 800 residential units along the southern Yonge Street frontage on site. Over time, it is envisioned that the site may support a full redevelopment totaling approximately 1.8 million sq. ft of GFA in aggregate."
The brokers note that they have secured a Planning Opinion and illustrative massing concepts from planning firm Bousfields. Those massing concepts show a long-term full redevelopment concept that includes four towers between 34 and 37 storeys, two towers between 24 and 27 storeys, and two buildings between 10 and 14 storeys.
"Redevelopment may greatly benefit from cost savings from fully or partially retaining the existing 1,223-stall below-grade parkade," the brokers also note. "In addition, there is opportunity to generate meaningful income during the initial phases of development by keeping the remaining office towers leased and revenue-generating. The office holding income will also serve to offset the cost of development."
In their listing from two years, the brokers noted a redevelopment potential of just one 14-storey tower and one 26-storey tower.
