Property Overview and Investment Success. Acquired in 2004, the property at 1220 & 1250 Brant Street, Burlington, Ontario, is a prime commercial asset. The shopping centre encompasses 297,000 square feet and is anchored by notable tenants such as Sobeys, Indigo, Famous Players, Lazy Boy Furniture, and Marshalls. Additionally, the site includes 4 acres of vacant land designated for future retail development, providing significant growth potential.  

Location Highlights. Burlington, with its population of approximately 160,000 residents, is strategically situated with excellent transportation links to Toronto. These include rail connections, Highway 401, and GO Transit, making it a highly accessible city for commuters and businesses alike. The local economy is diverse, comprising industries such as food processing, packaging, transportation, electronics, auto parts manufacturing, and business services, which contribute to its robust economic foundation.  

Acquisition Strategy. Terracap structured a highly tax-efficient acquisition deal to secure this sought-after Class A property in a competitive commercial real estate market. The vendor faced a significant tax challenge due to a low tax cost base and high recapture upon disposition. To mitigate these challenges, Terracap utilized a third-party structure that absorbed the recapture, subsequently transferring the assets to Terracap at a higher tax cost base. This innovative approach enabled the company to purchase the property at a reasonable price while providing the vendor with a tax-effective solution.  

Investment Performance. Since acquisition, the shopping centre has proven to be an outstanding investment, maintaining a near 100% occupancy rate with consistent year-over-year rent increases. The property attracted significant interest, leading to a successful sale to an internal investor pool. This transaction delivered a substantial return on investment for those who chose to capitalize on the opportunity.  

Recent Developments. The site's potential continues to be realized. A new 40,000-square-foot LA Fitness has been constructed and opened on surplus land, enhancing the centre's amenities. Additionally, an extensive renovation of the Sobeys store has been completed, ensuring the shopping centre remains modern and competitive.  

For a comprehensive list of tenants, please click here...

This property exemplifies Terracap's ability to acquire, manage, and enhance high-quality commercial real estate assets while delivering exceptional returns to investors.