649 Scottsdale Drive Guelph, On

INVESTMENT OPPORTUNITY 649 SCOTTSDALE DRIVE GUELPH, ON

Capital Markets | Investment Properties

Tim E.A. Pacaud* Scott MacKenzie* Jordan Lunan* Vice President Vice President Associate Vice President 416 798 6256 416 798 6219 416 798 6270 [email protected] [email protected] [email protected] Chris Kotseff* Mitchell Blaine* Mallory Weldon* Vice President Senior Vice President Sales Associate 519 340 2321 519 340 2309 519 340 2310 *Sales Representative THE OFFERING

CBRE Limited (“CBRE” or “Advisor”) on behalf of its client Skyline Real Estate Holdings Inc. (the “Vendor”), is pleased to offer for sale a 100% freehold, interest in a multi-tenant commercial complex located at 649 Scottsdale Drive, Guelph (the “Property” or “Offering”).

One of Guelph’s premier Class “A” office buildings is 93% occupied to a diverse group of tenants including; BMO, Investors Group and The Co-Operators. Located just East of the Hanlon Expressway, 649 Scottsdale Drive is within close proximity to many amenities including Stone Road Mall and is minutes to Highway 401 and the University of Guelph. This professionally managed building features an appealing white stone façade and underground parking with secure access.

The Property totals 81,531 square feet of net rentable area between two buildings on approximately 2.27 acres of land. The Property consists of a 72,155 square foot five-storey A-class office building with international credit tenants and 9,376 square feet of detached grade level retail. This Offering provides investors with the rare opportunity to acquire an asset of this quality in a growing Midwestern Ontario market.

Interested parties will be required to sign a Confidentiality Agreement prior to receiving additional information on this offering. The Vendor will be prepared to review offers submitted through CBRE on a specific date that will be communicated by the Advisor at least seven (7) days in advance. AERIAL IMAGE 649 SCOTTSDALE DRIVE, GUELPH ONTARIO

UNIVERSITY OF GUELPH

HANLON EXPRESSWAY BEST BUY WALMART THE OFFERING STONE ROAD MALL 649 TD BANK SERVICE ONTARIO SCOTTSDALE DR CANADIAN TIRE DELTA MCDONALDS STONE ROAD W LCBO STAPLES NO FRILLS DAYS INN

PROPERTY DETAILS

Net Rentable Area 81,531 Sq. Ft.

Office 72,155 Sq. Ft. RBC TIM HORTONS

Retail 9,376 Sq. Ft. EDINBURGH ROAD S ROAD EDINBURGH Land Area 2.27 Acres KORTRIGHT ROAD E

Parking 184 underground, 82 surface ZEHRS Total Occupancy ~ 93%

Zoning Service Commercial (SC.1-33)

Constructed Circa 1991

Net Operating Income GORDON STREET HANLON EXPRESSWAY (Year 1) $1,117, 28 5 Asking Price $16,250,000 INVESTMENT HIGHLIGHTS

INSTITUTIONALLY OWNED & MAINTAINED ASSET Institutionally owned and professionally managed “A” Class office building with ground level retail. The Property is considered one of Guelph’s most prestigious office buildings with over 70% of the office’s net rentable area being leased to national credit tenants.

PROMINENT LOCATION & ACCESS Excellent proximity to the Hanlon Expressway, the University of Guelph, and Stone Road Mall along with several other retail amenities within walking distance. Only 30 minutes commute from Kitchener/Waterloo and GTA West. The complex is public transit accessible via several bus lines which access the intersection of Scottsdale and Stone Road West and bus line # 6 which stops directly in front of the Property.

HIGHLY SOUGHT-AFTER BUILDING ATTRIBUTES The Property offers an appealing white stone façade and professional landscaping. The location is highly visible with exposure being further enhanced by building and pylon signage opportunities. The site also offers both underground parking for staff and surface parking for visitors/customers.

STRONG MARKET LEASING FUNDAMENTALS Guelph’s average asking net rental rate reached an all-time high of $15.10 per square foot in Q4 2018. With positive absorption in 2018 and few office developments in the pipeline, the market and this asset should benefit from a lack of alternatives for tenants in the market for space. The current office availability rate in Guelph of 4.7% is favourable compared to the overall rate of 10.4% for all of midwestern Ontario.

INCOME DIVERSITY WITH CONTRACTUAL RENT GROWTH With six office and three retail tenants in place with varying lease expiry dates over the next six years, the offering provides income diversity and security to the underlying cash flow. Several tenants have contractual rent escalations in place allowing the owner to benefit from organic income growth.

CORE OFFERING Limited opportunities to acquire a class “A” asset of this quality in a growing Midwestern Ontario market. Guelph has one of Ontario’s strongest economies and is one of fastest growing cities in the province. With the increasing cost- of-living in the GTA, markets like Guelph stand to benefit from a shifting population looking for more affordable housing.

FREE & CLEAR The Property is being offered without any existing financing allowing prospective purchasers to seek out financing in today’s relatively low interest rate environment. CBRE, through its debt capital markets group, can assist prospective purchasers in attaining financing. 649 SCOTTSDALE DRIVE, GUELPH ONTARIO PROPERTY SURVEY 649 SCOTTSDALE DRIVE, GUELPH ONTARIO PHOTOS Tim E.A. Pacaud* Scott MacKenzie* Jordan Lunan* Vice President Vice President Associate Vice President 416 798 6256 416 798 6219 416 798 6270 [email protected] [email protected] [email protected]

Chris Kotseff* Mitchell Blaine* Mallory Weldon* Vice President Senior Vice President Sales Associate 519 340 2321 519 340 2309 519 340 2310

*Sales Representative

This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation; to include all employees and independent contractors (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved. Mapping Sources: Canadian Mapping Services [email protected]; DMTI Spatial, Environics Analytics, Microsoft Bing, Google Earth