3 Things to Know About Allied’s New King West Acquisition
Allied Properties REIT is buying 511-539 King St W for $100M, the latest territory in its ever-expanding King West empire. Here are three things to know about an acquisition CEO Michael Emory says is "extraordinarily strategic."
1. It's a big missing piece
The property—comprising three fully restored buildings with 62.5k SF of GLA and 33k SF of surplus land (a parking lot)—will be part of an extensive mixed-use redevelopment. Running west from the foot of Brant Street, 511-539 King West sits adjacent to a lengthy Allied-controlled swath from 469 to 499 King, east of Brant (below). With 511-539 King West, the REIT owns 622 feet of uninterrupted south-side frontage between 469 and 539 King St W. And 469 King West is just north of Allied-owned 420 Wellington St W, a mid-block connection that’s part of a 3.5-acre land mass that will include the newly acquired property.
2. It’s strategically located
More importantly, Michael points out, 511-539 King St W is located just west of Allied’s intensification project at 489-499 King St W, enhanced by the firm’s acquisition of 485 King St W late last year. Plans for these properties include construction of 300k SF of new commercial space, including an office tower at King and Brant. Also last year, Allied bought 460 King West, formerly Global Village Backpackers hostel, for $15M, giving it control of everything on the west side of Spadina between Adelaide Street and King West, and most of the north side of King between Brant and Spadina.
3. It’s another JV with Westbank
Allied will be redeveloping 511-539 King St W in collaboration with Westbank Corp. It’s already JVing with the Vancouver-based firm on a revamp of 19 Duncan St, acquired earlier this year, which will see a purpose-built rental tower built atop the existing 1908 structure. (Westbank is also redeveloping the Honest Ed’s site). Allied plans to operate 511-539 King West as a rental property in the near term, including it in its “growing pool of unencumbered assets.” The firm will work immediately on obtaining municipal approval for a mixed-use intensification of the property that includes preservation and continued operation of 511 and 519-525 King West. The deal is expected to close June 30.