True North REIT buys federally leased St. Laurent office building for $6.3M

2300 St. Laurent

A Toronto-based real estate investment trust is expanding its footprint in the National Capital Region through the purchase of a 40,000-square-foot office building in the Ottawa Business Park.

True North REIT says it plans to acquire the two-storey building at 2300 St. Laurent Blvd., located south of Walkley Road, for $6.3 million. Built in 1986, the property is fully occupied by the federal government with a remaining lease term of approximately 5.5 years.

Manulife Real Estate currently lists the property in its portfolio.

The Ottawa office of brokerage firm CBRE represented the vendor in the sale. Nico Zentil, a senior vice-president with CBRE's national investment team, said the transaction "represented a very solid outcome" for both parties.

Locally, True North (TSX:TNT.UN) – which has a market cap of approximately $412 million – owns three office properties outside the Greenbelt, including the Lumentum facility on 61 Bill Leathem Dr., in addition to the 279,100-square-foot downtown office building at 340 Laurier Ave. W.

Despite limited sale activity in the second quarter, investor demand for commercial real estate assets in Ottawa remains strong, brokerage firm Colliers International reported earlier this year.