TORONTO, March 7, 2017 – Cadillac Fairview (CF) along with its partner, the Ontario Pension Board (OPB), are pleased to announce the commencement of construction of a new 32-storey office tower at 16 York Street, located at the southwest corner of York Street and Bremner Boulevard in downtown Toronto. The building, comprising 879,000 square feet of first class office space, three underground parking levels with 289 parking stalls and ground level retail space, is slated to open June 1, 2020.
Reflecting confidence in the demand for premium office space in Toronto’s downtown, especially in the bourgeoning South Core area, Cadillac Fairview is proceeding with site construction without first securing a major anchor tenant.
“I'm very proud that CF has played a key role in the evolution of the South Core, and that we are now adding 16 York to this dynamic mixed-use district,” said John Sullivan, President and CEO, Cadillac Fairview. “Ten years ago, when the area was vacant parking lots, we introduced its first building, Maple Leaf Square, which was the catalyst for approximately $4 billion of subsequent development.”
Toronto is experiencing near-record-low vacancy rates and CF sees continued demand for commercial office space along with a deep pool of prospective tenants.
“We are excited to start this development project. Investing in high-quality real estate is an integral part of OPB’s overall investment strategy. We continue to focus on acquiring real estate assets with innovative designs and leading sustainability features that align with our long-term investment horizon. We are confident that 16 York will attract prime tenants and will provide us with an excellent return on our investment,” said Mark Fuller, President and CEO of the Ontario Pension Board.
“CF is moving forward with 16 York without any pre-leasing because of compelling market conditions and the superior qualities of the building and its location,” according to Wayne Barwise, Cadillac Fairview’s Executive Vice-President, Development. “Toronto's class A vacancy rate of 4% is among the lowest in North America and tenants are seeking the benefits that 16 York offers, including sustainability, efficiency, building intelligence, access to major transit options and local amenities.”
Cadillac Fairview is currently in discussions with a number of prospective tenants who have expressed interest in 16 York.
Located one city block from Union Station and in close proximity to both the Gardiner Expressway and Toronto’s waterfront, the site is well positioned to appeal to tenants who prioritize transit accessibility and a diverse amenity offering for their employees. 16 York will be built to LEED platinum specifications and will target WELL certification, the fast-evolving, occupant-centric standard for tenant well-being, comfort and efficient operation. Additional features include:
16 York marks the continuation of a long tradition at Cadillac Fairview of city building in Toronto and across Canada, through such iconic complexes as Toronto-Dominion Centre and CF Toronto Eaton Centre, as well as the more recently completed RBC Centre and Maple Leaf Square. Currently, CF’s Toronto office portfolio comprises 9.2 million square feet and is 97.6% leased.
CF and OPB’s partnership in 16 York represents a deepening of that relationship in Toronto. OPB and CF also co-own RBC Centre and Toronto-Dominion Centre as well as a future development site at 160 Front Street West. In January of this year, CF reached an agreement to sell a 50% interest in its Vancouver Portfolio to OPB and their partner, the Workplace Safety and Insurance Board (WSIB).
About Cadillac Fairview
Cadillac Fairview is one of the largest owners, operators and developers of best-in-class office, retail and mixed-use properties in North America. The company also invests in retail, mixed-use and industrial real estate in Brazil, Colombia and Mexico.
With assets valued at more than $29 billion, Cadillac Fairview owns over 38 million square feet of leasable space at 73 properties in Canada, including landmark developments, such as Toronto-Dominion Centre, CF Toronto Eaton Centre, CF Pacific Centre and CF Chinook Centre.
Cadillac Fairview has been wholly owned by the Ontario Teachers’ Pension Plan since 2000. Ontario Teachers’ is a diversified global investor and administers the pensions of more than 300,000 active and retired school teachers.
About Ontario Pension Board
Ontario Pension Board administers Ontario’s Public Service Pension Plan, a defined benefit pension plan serving approximately 82,000 active, retired and deferred members and their employers. With more than $23 billion in assets, it is one of Canada’s largest pension plans. Over the last 20 years, Ontario Pension Board has become one of Canada's leading direct owners of high quality commercial real estate.
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Martha Heeney, North Strategic