Crown Realty Partners has acquired 1111 and 1122 International Blvd., two class-A office properties in Burlington, Ont., from Fengate Real Estate for an undisclosed price.

“We identified opportunity in these properties because they are best-in-class, with prominent highway exposure, existing amenities and a great tenant base," Crown managing partner of real estate services Scott Watson said in response to questions emailed from RENX to him and managing partner of investments Emily Hanna.

The deal was brokered by Avison Young's Richard Chilcott. Crown declined to comment on the vendor’s motivation for selling.

Fengate acquired the buildings in January 2014 in a $220-million transaction that included six buildings and an 11-acre parcel of land.

Fengate has a portfolio of real estate properties and investments valued at more than $20 billion. It has another $4 billion in project value under development.

Crown’s new acquisitions occupy a 12.8-acre site with surface parking that provides easy access to the Queen Elizabeth Way via intersections at Appleby Line and Burloak Drive. 

The Appleby GO Transit station is 3.5 kilometres away and there are stores, restaurants, hotels and a movie theatre in close proximity.

What the two buildings offer

The seven-storey, 136,365-square-foot building at 1111 International Blvd. was built in 2000. The BOMA BEST Gold and WiredScore Silver-certified structure includes a full service cafe and a gym and is the subject of many environmental, social and governance (ESG) initiatives.

The seven-storey 149,209-square-foot building at 1122 International Blvd. was built in 2002. It also offers access to an in-house cafe and gym and has the same certifications and ESG initiatives as its sister structure.

The property also includes green space with a gazebo, picnic benches and walking paths.

Buildings are 87 per cent leased

Crown will take over property management responsibilities from Fengate for the two buildings, which are 87 per cent leased to a number of national and multinational financial services tenants. 

“Crown will initiate a model suite program at the properties and plans to capitalize on the increased market activity as ‘return to the office’ is at the forefront of many corporate agendas,” Watson said.

"Crown will continue to strategically invest to maintain the best-in-market standing of the buildings over its hold period.”

“We believe that best-in-class assets that are managed to a high, institutional standard are those that benefit from the bifurcation in the market,” Hanna said. “This is especially true in suburban markets.”

Purchase made with CR V LP

Crown is an integrated commercial real estate investment and management firm, with a strong focus on value-add opportunities, that has more than 10 million square feet of real assets under management.

The purchase was the seventh made on behalf of Crown’s fifth value-add fund, the $260-million CR V LP, which was created in 2021 and is backed by institutional investors.

There’s still money available to spend in the fund and Crown plans to raise its sixth fund sometime next year after it has deployed the remaining capital in CR V LP.

“We are actively buying and selling within this fund and remain focused on opportunities that fit with the investment thesis,” Hanna said.

Crown and its part in the Ontario office market

Crown’s perspective on the Ontario office market is shaped by real-time operational data and continuous underwriting activity, according to Hanna. 

“Because we remain active, we have a firsthand perspective that the cycle is advancing, supply of quality assets is gradually tightening, and office demand is building as businesses increasingly recognize the value of being in the workplace,” she said. 

“All of this creates a compelling moment for well-equipped groups such as Crown to acquire, reposition and reimagine what modern office buildings should deliver, aligning them with both tenant needs and investor expectations. 

“This presents a rare opportunity to create an awesome fund vintage and generate meaningful value and returns for our investors.”