Allied Properties REIT (TSX:AP.UN) is paying $42 million to buy two Yaletown office buildings, the group announced yesterday.
“Once the acquisitions are closed, our Vancouver portfolio will be comprised of five urban office properties with nearly 300,000 square feet of rentable areas,” said Allied CEO Michael Emory.
The purchases include a 44,667-square-foot building at 1040 Hamilton Street, where Salli Pateman operated restaurants at street level for 18 years until she closed Section (3) last month.
Allied’s other purchase is a 24,723-square-foot, tan and green building at 1286 Homer Street.
Allied anticipates that it will be able to obtain city approval to add 20,000 square feet to 1040 Hamilton Street and 10,000 square feet to 1286 Homer Street.
Both buildings are close to other Allied holdings. The building at 1040 Hamilton Street is close to the Allied-owned property at 948-950 Homer Street. The 1286 Homer Street property is close to an Allied property at 840 Cambie Street.
The $42 million purchase price represents a capitalization rate of 6.2%.
Both acquisitions are expected to close in November.
