This article was updated on May to clarify the landlord and tenant representatives in the Thales Canada lease deal.
The $410 million purchase of a portfolio of 14 hotels by InnVest Hotels from Morguard Corp. was Canada’s largest real estate transaction during the first quarter, making it one of the top deals recognized in the latest CoStar Power Broker quarterly awards.
Toronto-based Morguard first announced the deal to sell the portfolio in late 2023, and the deal closed on Jan. 18, 2024.
“The successful conclusion of this deal is a testament to the appeal of our hotel portfolio and the strength of Morguard’s management over the years,” said K. Rai Sahi, chairman and chief executive of Morguarad, in announcing the deal. “We are pleased to have capitalized on the current market demand for high-quality hotels.
The transaction included Courtyard Marriott and the Residence Inn Marriott in Markham, the Courtyard Marriott, Hilton Garden Inn Toronto Airport West and Cambridge Suites in Mississauga, the Holiday Inn Express in Ottawa, the Towne Place Suites by Marriott in Sudbury, the Courtyard by Marriott Toronto Airport, Hotel Carlingview Toronto Airport and Residence Inn by Marriott in Toronto, the Courtyard Marriott in Vaughan and the Cambridge Suites Hotel and the Prince George Hotel in Halifax.
InnVest sold four hotels from the portfolio to the Manga Hotel Group on the same day.
George Kosziwka, chief strategy officer of InnVest Hotels, at a hotel conference in February shared insight on the sale process that involved four rounds of bids. He said InnVest’s in-house renovation team is strategically positioned to revitalize the properties.
Listings brokers on the deal from CBRE included Luke Scheer, executive vice-president of hotels, Mark Sparrow, head of alternative assets and Ryan Tran, vice-president of alternative assets.
Here are some of the other top deals that posted during the first quarter:
Top Office Lease
Thales Canada Signs Lease in Suburban Ottawa
The first quarter’s top office lease was in Ottawa’s west market, where Thales Canada signed a 128,051 square foot office lease at 500 Palladium Dr.
Thales Canada, a company with annual revenue of over $800 million and a workforce of more than 2,500 employees coast to coast, signed the lease on March 25.
The deal kicks in on Feb. 1, 2025 and covers 45% of the 293,121-square-foot building owned by Pro Real Estate Investment Trust.
The leasing representatives on the deal was Alain Desmarais and Peter Rywak of Cushman & Wakefield, while the tenant representative was Doug Tilley, also of Cushman & Wakefield.
Top Retail Lease
Blue Sky Supermarket Snaps Up Location East of Toronto
The top retail lease of the quarter was for a supermarket just east of Toronto in Oshawa, where Blue Sky Supermarket signed a 22,790-square-foot lease at 1150 Simcoe St. N.
The grocery store, which focuses on Asian cuisine, opened its first store in North York in 2007 and later expanded into Pickering.
The 10-year lease was signed on Jan. 1, with a move-in scheduled for June 1.
Steve Babor of Sitelines Realty Inc. was the leasing representative on the deal. Arthur K Miu of Global Kink Realty Group Inc. was the landlord contact.
Top Industrial Lease
Glovis Canada Signs Lease in Brampton
Glovis Canada Inc., a logistics company, signed a lease in the first quarter for a 200,519-square-foot warehouse in Brampton northwest of Toronto, a deal selected as the top industrial lease of the quarter.
The Canadian logistics firm began operations August 2009. GCI was established to provide Hyundai Glovis’ expertise in logistics and synergy in operations to its Canadian counterparts, Hyundai Auto Canada Corp. and KIA Canada Inc.
The company’s lease deal at 35 Automatic Road, signed March 25, has a starting rent of $22 per foot and is for seven years. The lease begins on May 1.
Kyle Hanna and Even White of CBRE were the leasing representatives on the deal. The landlord contact is Brandon McIntee of New York-based Blackstone Inc. The tenant representatives on the deal were James Min, Colin Alves and Graham Meader of Colliers.
Source CoStar. Click here to read a full story.
