An 86,000-square-foot warehouse with Queensway visibility has been purchased by Crestpoint Real Estate Investments Ltd. as part of a three-building portfolio sale.
Constructed in 2007, the industrial building at 1171 Kenaston St. sits on seven acres of land and is fully leased by information security company Securit, which also provides document destruction services under the Shred-it name. Crestpoint says there is room to develop another 50,000 square feet of distribution space on the site.
The property traded for $9.8 million, or $114 a square foot, according to records published by real estate data firm RealTrack Inc.
Crestpoint - the real estate arm of Canadian asset management firm Connor, Clark and Lunn Financial Group - also purchased a 256,600-square-foot warehouse and a 36,700-square-foot office building in Oakville, both leased by Securit / Shred-it, bringing the total value of the portfolio to $33 million.
"High-quality class-A and class-B office and industrial properties, such as these Shred-it facilities, are difficult to acquire in markets like Ottawa and Oakville," said Crestpoint president Kevin Leon in a statement.
"Being fully leased to a prime tenant at below market rates provides both stability and the opportunity for income growth over the coming years. These properties are great additions to our portfolio of assets and will increase the regional diversification of our holdings."
Ottawa's industrial market ended 2011 with a vacancy rate of 6.3 per cent, down 10 basis points from the third quarter, according to data from Cushman & Wakefield Ottawa.