Challenge
A High-Risk Investment
Though 2800 André Avenue had in-place income as well as development potential, its unusual tenant, a cross-dock truck parking service with a 7-year lease, was seen to be unreliable compared to other types of industrial tenants making the investment high-risk. Though there was substantial development potential on the land for a distribution center of 650,000 SF, Canada’s high-interest rate environment prevented its immediate economic viability turning the focus of the property as an income generating investment in the mid-term and placing greater focus on the property’s sole tenant.
Highlights
- Lot size: 1,139,965 SF
- Trailer/Tractor Parking: 673 stalls
- Excellent Connectivity to Air and Rail Transportation Network
- Stable Cashflow with Redevelopment Potential
- Record of price per Square Foot
Action
Reframing the Tenant from a Liability to an Asset
2800 André Avenue had a rare zoning clause which was grandfathered in and unattainable for other nearby properties by the city. Under this optic, the property was essential for businesses needing industrial outdoor parking. In short, the rare zoning clause gave the property a near monopoly in the area for cross-dock outdoor parking, an essential feature for supply chain management and an on-trend activity in a growing e-commerce environment. Amidst this perspective the property’s unique zoning enabled a premium in pricing. Such a perspective gave Joe’s team the opportunity to market the property as a secure investment in the medium term to developers looking to buy and hold the property until a more favourable interest rate environment emerged.
Results
An International Developer Specialized in Cross Docking
After conducting a detailed evaluation and engaging with potential buyers directly, we successfully demonstrated to developers that 2800 André was a secure investment given the increasing value per square foot of industrial land over the past 5 years, and the properties near monopoly on cross-docking. Consequently, we were able to find an international developer who specializes in cross-docking who recognized the property as a unique opportunity to establish their presence in Canada with the existing facility and subsequently expand their presence in the near future by expanding the properties capacity.
Testimonial
“We wanted to thank Joe Rullier for his exceptional service in selling our land. His professionalism, expertise, and dedication were evident throughout the process, and we could not have been happier with the outcome. His personal touch and commitment to our goals made it a pleasure to work with him, and we would recommend him without hesitation to anyone looking for a commercial broker who delivers results.”
-Mike Jager and Sam Tsoumas,
ROSEFELLOW