Arkfield pays $31m for retail centre near Toronto

• What First Capital REIT sold the center to Arkfield
• Why First Capital is actively selling low-yielding assets   
• What’s next Arkfield likely will redevelop the site into high-rise residential

A corner shopping centre north of Toronto has changed hands for $31 million, Green Street News Canada can reveal.

Arkfield bought the 53,000 sq ft Yonge Davis Centre, in Newmarket, from First Capital REIT on March 14. The Toronto-based residential developer financed the purchase with a $15 million loan from Peakhill Capital. The debt, which has a fixed rate of 5.7%, runs three years.

Arkfield plans to eventually redevelop the site into a high-rise residential property. The developer has four high-rise projects in the planning and approval phase in Toronto and North York.

Anchor tenants at the center, which is nearly fully occupied, include Alexanian Carpet, Dogtopia and Sleep Country Canada. There’s 1,200 sq ft of vacant space.

The 4.6-acre site, at 17480 Yonge Street, is adjacent to Upper Canada Mall at the southwest corner of Yonge Street and Davis Drive West. On average, some 37,000 cars pass the site each day, according to marketing materials, and there are 105,000 residents with an average household income of $137,000 within 5 km of the site.

Toronto-based First Capital sold Yonge Davis Centre as part of an ongoing plan to monetize more than $1 billion of low-yielding assets by the end of 2024. As of Feb. 6, the REIT had completed or had under agreement $633 million of sales. Led by president and chief executive Adam Paul, the company has approximately $9.2 billion in total assets.

Arkfield, founded in 2016, invests in and develops real estate across the GTA. It’s helmed by director Amin Jalalpour and CEO Ramin Jalalpour.