FAM REIT Snaps Up Yonge Street Office
What made the 170k SF office building at 4211 Yonge St such an attractive investment for FAM Real Estate Investment Trust, who yesterday announced its $43M acquisition? Rental rates 25% below market, which means cash flow potential. (Three little words that all REITs want to hear.)It's alsothe allure of getting into the downtown proper, says CEO Shant Poladian.I thinkwe can add a lot of value over time, he says. The property is in pretty good shape already, and the REIT has the zoning flexibility toalter the propertyandadd additional retailto complement the Swiss Chalet thats there presently. (What do you think diners are most likely to buy after a delicious meal?)
We had to "borrow" a helicopter to get this photo. Theproperty is well located, just south of Highway 401, along the Yonge-University-Spadina TTC line.There have been over 600 residential condo units added over the past decade, all within walking distance, Shant says. None of the buildings have ground-level retail, and adding new retail tenants to 4211 Yonge would bring not only amenities to office tenants and condo residents, but attractive rents.Thepurchase is expected to closeMay 2.
