Acquired in 2004, the Brant Street Shopping Centre is strategically located at 1220 and 1250 Brant Street in Burlington, Ontario. This prominent retail property spans an impressive 297,000 square feet of commercial space and boasts an array of high-profile anchor tenants, including Sobeys, Indigo, Famous Players, Lazy Boy Furniture, and Marshalls. In addition to the existing retail space, the property includes four acres of undeveloped land, offering potential for future retail expansion and value creation. Burlington, a vibrant city with a population of 160,000 residents, is a prime location for commercial investment. The city benefits from outstanding transportation links to Toronto and the Greater Toronto Area (GTA), including access to Highway 401, Go Transit, and rail connections. Burlington’s diverse economic base spans industries such as food processing, packaging, transportation, electronics, auto parts manufacturing, and business services, making it an attractive hub for both residents and businesses.

A Smart and Tax-Effective Acquisition Strategy

Terracap employed a highly strategic and tax-efficient approach to acquire this Class A commercial property. Recognizing that the vendor faced a low tax cost base and significant recapture liabilities upon disposition, Terracap structured the transaction through a third-party intermediary. This innovative structure allowed the third party to absorb the tax recapture and subsequently sell the assets to Terracap at a higher tax cost base. This approach not only minimized tax implications for the vendor but also enabled Terracap to secure this highly sought-after property at a reasonable price during a competitive commercial real estate market.

Investment Performance and Value Maximization

Since acquisition, the Brant Street Shopping Centre has proven to be an exceptional investment. The centre has consistently maintained near-full occupancy, with nearly 100% of its retail space leased. The property generates stable and growing cash flows, thanks to moderate annual rent step-ups across its tenant base. Recognizing the strong demand for this asset, Terracap capitalized on the opportunity to sell the shopping centre to an internal investor pool. The transaction delivered significant returns for investors who opted to exit, highlighting the property’s impressive appreciation and income-generating potential.

Recent Developments and Future Growth

In recent years, Terracap has further enhanced the property’s value through strategic developments and upgrades. A new 40,000-square-foot LA Fitness was constructed on the surplus land, adding a popular fitness anchor to the site. Additionally, the existing Sobeys store underwent an extensive renovation, modernizing the space and elevating the shopping experience for patrons. The site now includes approximately 7,500 square feet of new pad space located in front of Sobeys, accommodating additional tenants and diversifying the retail mix. A new Marshalls store has also opened, further strengthening the shopping centre’s appeal as a retail destination. With its combination of prime location, strong tenant mix, and ongoing development potential, the Brant Street Shopping Centre stands as a testament to Terracap’s ability to identify, acquire, and maximize the value of high-quality commercial real estate assets.