Recent Industrial Property Sales - Oakville

Only 2 Industrial Property transactions have taken place in Oakville during the past 2-and-a-half months (Sept. 01/08 - Dec. 08/08):

(1) 750 Weller Court sold on October 15th, 2008. This was a 28,750 sq.ft. industrial building on 1.99 acres (so there is some excess land for a further addition). The sale price gives a price point of $66 per square foot. The building was sold vacant. A Vendor-Take-Back mortgage was a critical part to this deal.

(2) 1296 South Service Road West. This was a first-class single-user industrial building fronting the QEW. The building is 80,000 sq.ft. and sits on 6.3 acres so there is excess land on which to build. The sale price gives a value of $91 per square foot. This was a Sale/Leaseback transaction with the purchaser being a pension fund. The price per square foot is skewed a bit as the purchaser was recieving extra land in the deal. If you allow 50% coverage, then there are 2.63 extra acres of land. At $750,000 per acre this would represent $1.97 Million. Subtracting this value from the purchase price gives us a net price of $5.33 Million (or $66 per sq.ft.). I like this deal: cash flow in the near term, great exposure to the QEW, excess land to work with in the future.