2 & 30 International Boulevard

About the buildings

2 and 30 International Boulevard comprise approximately 122,400 square feet near Toronto’s Pearson International Airport.

Recently constructed and with first occupancy occurring in 2019, 2 International Boulevard represents a best-in-class flex-office building with LEED Gold status. The building boasts numerous positive physical attributes, including efficient floor plate design, ample natural light and a low common area gross-up factor.

30 International Boulevard represents a complementary flex-office building and adjoins 2 International Boulevard. An extensive ground-up renovation and modernization was recently completed, including new energy efficient exterior glazing and cladding. The first occupancy following renovation occurred in 2018.

Located in the “Airport Mega Zone” which forms the second largest employment concentration in Canada, the two properties benefit from ample food services, hotel and conference facilities and a variety of entertainment options, all within a short distance from the site which support the needs of occupiers.

Investment rationale and value creation

The Canadian value-add investments team developed the assets based on a vision to create new generation flex-office buildings that would meet the needs of high-value corporate occupiers. The flex-office nature of the assets offers large open floorplates to suit the free movement of employees. Most units are self-contained with direct exterior access points, allowing tenants to park and access space without the need for common areas. The HVAC system features high efficiency MERV 13 filters recommended in the wake of the Covid-19 pandemic.

The buildings are now occupied by diverse corporate tenants in thriving industries, including life sciences, professional services, construction and leaders in food and beverage. The diversity of the tenancies insulates the two properties from sector-specific volatility to provide stability, and tenants have invested considerable capital into their spaces through extensive interior fit-outs and have made long-term lease commitments.

What we achieved

At the time of sale in Q3 2021, 2 and 30 International Boulevard were 97% leased with a long-term weighted-average lease term, making them less susceptible to any perceived near-term market volatility. This both made them an attractive asset for the purchaser’s portfolio and meant the team was able to achieve a robust selling price.