Downtown Toronto Building Home to Uber Up for Sale
Downtown Toronto Building Home to Uber Up for Sale
CBRE Retained by Credit Suisse to Market Property
A downtown Toronto office tower that is home to an engineering hub occupied by ride-sharing company Uber has hit the market for sale.
CBRE has been retained to market the 16-storey tower once known as the Alliance Atlantis Building, named after the now-defunct media company. CBRE said it does not comment on its listings.
CBRE’s marketing brochure for the building said it is offering for sale a 100% leasehold interest in 121 Bloor St. E, a property that is institutionally owned and managed.
While the brokerage doesn’t list the seller, CoStar data indicates that Credit Suisse Real Estate Fund International has 100% land lease ownership that expires in 2061 with one renewal option for 20 years.
Officials with UBS Group, which bought Credit Suisse in 2023, could not be reached for comment.
The CBRE brochure notes the trustees of St. Andrew’s Congregation of the United Church of Canada are the lessors of the land for the 241,969-square-foot property.
Secure Cash Flow
The property, constructed in 1982, was long known as the Alliance Atlantis Building but now has Uber’s logo at the top of the building. Uber leased five floors in the building in 2019, refitting it with amenities that included indoor mini putt, e-scooters and kombucha on tap, according to media reports.
CBRE considers the property part of the luxury Bloor-Yorkville commercial corridor.
The property is 95% leased and, in addition to Uber, is anchored by design engineering firm Arup. Together, they occupy 59% of the space.
The weighted average lease term in the building is 5.6 years. The in-place average net rents are $27.75 per square foot, CBRE says.
“An investor benefits from a stable and secure cash flow that also permits compelling income enhancement opportunities given market net rents are approximately above 15% above contractual rates. As tenant flight to quality persists, Class A office towers at Bloor-Yonge are ideally positioned to capture the accelerating leasing momentum,” said CBRE in its listing.
The building was updated in 2012 with $4.5 million of capital expenditures.
A filing from Credit Suisse in 2020 said the property was purchased by its real estate fund in 2005 for just over $64 million. The fund owns another building nearby at 160 Bloor St. E.
In a report this month, CBRE said the downtown Toronto office market saw vacancy rates hit an all-time high of 16.7%. The real estate company noted rental rates have “paused their downward trajectory” with some uptick for recently completed projects.
CBRE said in a report last month that stabilizing interest rates has improved investor sentiment in real estate.
“While stronger investor confidence will rejuvenate investment activity, much of it hinges on the economy’s continued progress towards lowering inflation, for which the path forward remains shaky,” said CBRE.
Source CoStar. Click here to read a full story.
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