Toronto, Ontario -- November 30, 2018 -- Automotive Properties REIT has completed its purchase of the Brimell Toyota dealership property from a third party for approximately $26 million.
Concurrent with the REIT’s acquisition of the property, the deal would see Drive Autogroup acquire the Brimell Toyota dealership operating business, which would then become a tenant of the REIT.
"We look forward to adding one of the premier Toyota dealership properties in Toronto to our portfolio and welcoming Drive Autogroup as a new tenant," said Milton Lamb, president and CEO of Automotive Properties REIT.
The Scarborough, Ontario property, which was built in 2002, includes a full-service Toyota dealership, a collision centre and car wash, representing a total leashing area of 55, 600 square feet. The facility is located on approximately four acres of land at 5060 Sheppard Avenue East.
Drive Autogroup will be the operating tenant in the contract and will enter into a 15-year, triple-net lease with REIT. The lease will include contractual rent increases after the third year of the lease term that will be based on the Ontario Consumer Price Index.