November 12, 2019
Centurion Asset Management Inc., the asset manager of Centurion Real Estate Opportunities Trust (“REOT”), is pleased to announce that it has completed the purchase of a 75% interest in a medical office building in Toronto, Ontario. This transaction is Centurion’s first medical office acquisition.
Located at 520-524 Ellesmere Road in Toronto, the six-storey building is within a short distance from the Don Valley Parkway and Highway 401. It is within a 10-minute drive to four major hospitals – North York General Hospital, Scarborough Healthcare Birchmount, Centenary Hospital, and Scarborough General Hospital, making it attractive to healthcare professionals seeking office space. (map)
The 105,000-square-foot property is a joint venture acquisition between Centurion REOT and Rise Commercial Developments, a real estate development company specializing in the development and management of premier medical office spaces in Canada. This joint acquisition provides a value-add opportunity for Centurion.
Centurion President and CEO Greg Romundt stated, "I have been interested in the medical office space for a while. It shares many of the same characteristics that attracted me to the apartment sector. These are: (1) a core need [health care] that doesn't change with the economy; (2) a diversified and stable tenant base as doctors tend not to move, whose business is stable and whose ability to pay is funded by the government, and who tend to not need much space so you generally have a diversified tenant base; (3) positive demographic trends – our society is aging, and we need more not less of it; and (4) a market niche that is not excessively competitive, with room to build a platform over time.”
“We have partnered with Rise Commercial Developments to reposition the property and are looking for other opportunities, in new development, value add and existing assets in the medical office space to build, over time, another interesting niche vertical that meets the risk and return objectives of our investors. Centurion, as an organization, has always sought out pockets of opportunity and niche strategies where we saw opportunity. I'm very excited with this new vertical and the team we have put together to execute on the opportunity," Greg added.
“Rise is excited to have partnered with Centurion on the acquisition of 520 Ellesmere,” Greg Appelt MD, President of Rise Commercial Developments commented. “We believe the asset holds significant potential considering the lack of high-quality medical office supply in the area and the proximity of the building to four major hospitals.”
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About Rise Commercial Developments:
Rise Commercial Developments (“Rise”) is a real estate development company focused in the development and management of premier medical office spaces in Canada. From financing and acquisition to construction, leasing and management, Rise provides a transparent process which allows physicians to be as involved in the project as they wish. Rise has participated in the development and construction of more than 650,000 square feet of medical office space.