Hines has announced that Hines Real Estate Investment Trust, Inc. (Hines REIT) has acquired its first international property, Atrium on Bay, an approximate 1.1 million-ft² mixed-use complex in Toronto's Downtown North submarket. It was acquired from a joint venture between Brookfield Properties and The Ellman Companies. The complex contains three office towers, a two-story retail mall and a two-story parking garage.
Located on Bay and Dundas Streets, the property is situated directly above one of Toronto's busiest subway stations and is adjacent to Toronto's largest mall, a 23,000-student university and a seven-hospital campus.
The three office towers contain approximately 913,000 ft² and are 8, 13 and 14 stories, respectively. The retail mall contains approximately 142,000 ft². Atrium on Bay was developed in the early 1980s, was renovated in 1999 and 2000, and is currently 86% leased. The Canadian Imperial Bank of Commerce occupies roughly 34% of the total rentable area, with an array of prestigious tenants occupying the balance.
Hines will manage the property and oversee leasing on behalf of Hines REIT.
"Atrium on Bay marks a significant milestone for Hines REIT," said Charles Hazen, president of Hines REIT. "As our first international acquisition, it is representative of the existence and availability of stable, core properties in established markets outside of the United States. This is a fantastic addition to the portfolio and allows us to participate in the potential upside of an improving market and location."
"Hines REIT has the unique advantage of Hines' international presence and deep market knowledge in pursuing investment opportunities," said Avi Tesciuba, a Hines senior project manager. "Hines was active in Canada as early as 1976, and the major markets have become very attractive in recent years for both investment and development activity. We feel well positioned to capitalize on opportunities as they arise."