The Canadian Pension Plan Investment Board (CPP Investments) has put the sprawling office complex in downtown Toronto that it calls home on the market, in what will likely be one of the most notable commercial listings this year.
The LEED Platinum-certified and BOMA BEST Silver-certified office complex is comprised of the 26-storey Class A office tower at 1 Queen Street East and the seven-storey heritage office building at 20 Richmond Street East.
The two office buildings make up the entire 1.18-acre block that's bounded by Queen Street East on the north, Victoria Street on the east, Richmond Street on the south, and Yonge Street on the west. It's located directly across the street from the 20-storey office tower at 2 Queen East Street, which CPP Investments sold its stake in late last year, as previously reported by STOREYS.
CPP Investments acquired an 100% ownership interest in 1 Queen Street East and 20 Richmond Street East from the Ontario Pension Board in June 2013 for $220 million. It has called 1 Queen Street East — named One Queen East — home since September 2001 and it serves as the pension fund's global headquarters.
1 Queen Street East and 20 Richmond Street East in downtown Toronto. / CBRE
One Queen East was constructed in 1991, while 20 Richmond Street East dates back to 1893. The two buildings are connected by a five-storey glass atrium and the complex also includes ground-level and concourse-level retail space, as well as a four-level underground parkade.
The Listing
This week, 1 Queen Street East and 20 Richmond Street East were listed for sale by CBRE Toronto's National Investment Team, who said they are offering a 100% freehold interest in the properties, free and clear of financing, on behalf of CPP Investments, in what CBRE is calling a "generational purchase opportunity."
The taller building includes 398,527 sq. ft of space, while the smaller building includes 105,403 sq. ft of space, for a total of 503,930 sq. ft of space across the two buildings. CPP currently occupies 320,902 sq. ft of space across 17 floors.
- Address: 1 Queen Street East | 20 Richmond Street East
- Year Built: 1991 | 1983
- Net Rentable Area: 503,930 sq. ft (398,527 sq. ft + 105,403 sq. ft)
- Current Occupancy Rate: 91.9%
- Price: Unpriced
- Listed By: CBRE (Peter D. Senst, Jaysen Smalley, Kai Tai Li, Connor Yung)
"An incoming buyer can capitalize on the existing institutional-quality leasehold improvements to create exceptional value through strategic leasing and repositioning initiatives, and/or occupy the Property for its own operations," said CBRE, adding that CPP has made comprehensive improvements to the property over the last decade, including to key mechanical systems, elevator infrastructure, and common areas.
The lobby (left) and office space (right) within 1 Queen Street East. / CBRE
Notably, the listing also highlights the property's redevelopment potential.
"Developers are presented with the opportunity to re-imagine the Property through the redevelopment of the 1 Queen Street East tower," said CBRE. "Bousfields envisions a vibrant, primarily residential redevelopment concept, comprising up to 1,040,967 sq. ft. of total GFA (±90.9% residential) and approximately 1,172 residential units. This concept provides much needed transit-oriented residential density that conforms with provincial and municipal planning regulations."
As for 20 Richmond Street East, CBRE says the incoming purchaser could potentially reposition the heritage component for hospitality, retail, or inventive commercial concepts, adding that the property also carries conversion potential.
"Never before has there been an opportunity comparable to the Offering for a user to acquire and occupy a prominent Class 'A,' Canadian pension fund owned, managed, and headquartered building in the nation's most critical economic centre."
