Essentially ALL Canadian Offices are up for sale! Essentially ALL Canadian office buildings are up for sale. This will help close the GAP.
Quote:
"At September 30, 2023, the REIT had seven office properties, two industrial properties, one retail property, one parking lot and one parcel of development land located in Canada and four office properties located in the U.S. with an aggregate fair value of $269,372, classified as held for sale."
Office Assets:
Canada Office:
The below is ALL that is left for Canada Office. Earnings call basically confirmed all Canadian Offices are going to be SOLD. (There might be 1 or 2 kept strategically, hard to decipher for sure)
BC
- Kincaid Building in Burnaby - Nothing special. Lots of demand for BC office (Vancouver is one of the lowest vacancy areas in Canada)
- POCO Place - Very high demand area, growing fast. Easy to sell
Manitoba - All good leases and should be relatively easy to sell
- Head Office - Sold
- 360 Main - Keep, its part of the new residential build. Maybe sell the package after stabilized. KEEP
- CDI Building - Sell. 5YR WALT
- Grain Exchange - Sell - Multi-Tenant - Historic Building
- Hamilton Building - Sell - Historic Building - City of Winnipeg
- Johnston Terminal - Sell (multi-tenant) - Historic Building
- Bell Buildings - Sell 3.2YR WALT - Up for sale
Ontario - Recipe Unlimited Building - Sell - 5.3YR Walt (only ontario building left - sell for efficiency)
Good lease WALT and tenants on the Canadian Office should make them easy to move.
USA Office
Madison WI - Class A Desirable Large Portfolio worth about 340M CDN (not disclosed though). This is high occupancy and nice Class A portfolio.
Arizona - 4 Buildings
Max @ Kierland - Class A Trophey Asset - Multi-Tenant - SELL
North Scotsdale - Class A - A WIN Management 9+ WALT - SELL (Easy Sell)
Union Hills - Class A - Multi Tenant - SELL
Stapley - Class A- Multi Tenant - Excellent location and lots of buildable land. Should be an easy sell.
Colorado - 1 Building
Hudson's Bay Center - Class A - Multi-Tenant - SELL
Minnesota - 6 Buildings
Stinson - Class B Multi-Tenant - Long Leases - Healthcare. Can't figure out all the leases, but half the building is occupied by an almost 10 year WALT healthcare tenant
601 Tower - Class A - Great Location - Multi-Tenant - Unsure of lease WALTs
Canadian Pacific Plaza - Class A- Great Location - Multi-Tenant
Two Marketpointe - Class A - Multi-Tenants with Buildable Land
Boulder Lake Business Park (2 buildings) - Class A - 386K sq feet occupied by single tenant with 11 year WALT (Easy Sell)
When you go through the list, and know what Artis owns, you see that these buildings would be rather easy to move. Basically everything left in the USA is class A (except Stinson Healthcare Building with long WALT), hence the lower CAP rates than Canada.
We are getting rid of office, while holding assets with organic growth or development. Samir knows what he is doing. Curious as to what the strategic review is going to bring.
{{$quote}}