- What Prime Real Estate Group is looking to sell four shopping centres
- Why The properties have a combined lease rate of 98.5%
- What next The retail centres can be purchased separately or as a package
Prime Real Estate Group is shopping four Class-A shopping centres in Alberta for about $67m, Green Street News can reveal.
The 174,000 sq ft portfolio, which is more than 98.5% occupied on average, is spread across three cities: Calgary, Cochrane and Lethbridge. At the expected valuation, the capitalization rate would be in the mid- to high 6% area.
The properties hit the market in early July and are available as a package or individually. JLL has the marketing assignment.
Marketing materials tout the centres’ “strong and diversified tenant roster,” which includes national chains and established local businesses. The weighted average remaining lease term is 4.8 years, and average rent is $28.64/sq ft.
The sales campaign also notes that the centres are in high-traffic retail areas “predominantly surrounded by grocery anchors.”
Royal Vista Professional Centre I is a retail and medical-office building on 4.26 acres at 15 Royal Vista Place NW in Calgary. Built in 2012, the property spans 66,000 sq ft. Retail space occupies the first floor, with office space above.
Its 21 tenants include CIBC, Face Forward Dental and Service Canada. The property is 96.1% occupied, with an average rent of $24.49/sq ft. Shadow anchors include Sobeys and Walmart.
Royal Vista Professional Centre II, completed in 2019, is nearby at 4 Royal Vista Way NW. The 13-tenant property is 100% occupied, with an average rent of $35.46/sq ft. Key tenants include a 7-Eleven and Mr. Lube. The total leasable area is 39,000 sq ft.
Grande Plaza Retail Centre is at 216 Grande Boulevard in the heart of Cochrane, about 35 km northwest of downtown Calgary. The 22,000 sq ft centre is on more than 2 acres and has eight tenants, including a Liquor Barn. The property, finished in 2018, is 100% leased with an average rent of $32.45/sq ft.
Further south in Lethbridge, South Centre Common, at 60 Southgate Boulevard South, is on nearly 3.9 acres and spans 47,000 sq ft. The average rent is $27.28/ sq ft, and a Party City and Dollar Tree are among 14 tenants.
Completed in 2015, the property boasts a 100% occupancy rate. Nearby, a Costco and Loblaws shadow anchor the property in the Mayor McGrath Drive area, considered the retail hub of the city.
Based in Calgary, Prime Real Estate is led by CEO Moiz Bhamani and president Harwinder Kang. It primarily invests in neighborhood retail, office, industrial and hotel properties in Alberta and Texas.
