Winnipeg-based REIT to sell Richmond Road office building in $39M deal

495 Richmond
495 Richmond Rd.

A Winnipeg-based real estate investment trust is selling off a prime Ottawa property as part of its bid to divest itself of up to $1 billion in “non-core” assets over the next three years.

Artis REIT announced Wednesday it has agreed to sell an office building at 495 Richmond Rd. to an undisclosed buyer for $39 million, representing a capitalization rate of 6.28 per cent. The sale is expected to close in November.

Built in 1983 and last renovated in 2012, the seven-storey Class-A building on Richmond Road in Westboro includes about 106,000 square feet of leasable space. Its largest tenant is currently the Canadian Institute for Health Information.

The Ottawa sale is part of a number of recent deals in Canada and the United States for Artis. The REIT also announced Wednesday it sold a property in the Greater Phoenix Area for $120.7 million and has an agreement to sell a 192,000-square-foot office office tower at 415 Yonge St. in Toronto for $124 million.