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Cadillac Fairview Thinks Toronto Ready for New Tower

Real Estate Company Will Move its Parent Corporation Into $800 Million, 46-Storey Building Planned for Fall of 2022
June 13, 2018
Courtesy: CNW Group/Cadillac Fairview Corporation Limited.

Cadillac Fairview is teaming up with the Investment Management Corporation of Ontario on a new $800 million, 46-storey office tower for downtown Toronto with Cadillac's parent corporation committing to relocate to the building.

Ontario Teachers' Pension Plan will be the initial client for the building at 160 Front Street, which is slated to open in the fall of 2022.

"This city continues to experience record-low vacancy rates, fueled by demand for quality, sustainable office space across a broad array of clients, and in particular the tech and financial sectors," said John Sullivan, president and chief executive of Cadillac Fairview, in a statement. "With space availability in downtown Toronto at the lowest level in over 25 years, we see tremendous opportunity for this development."

Cadillac has $1.5 billion of significant office projects under development, including a $479 million building at 16 York Street in Toronto, the $200 million BMO Campus at CF Toronto Eaton Centre, a $60 million revitalization of 2 Queen Street West and the $25 million redevelopment of a former Sears location at CF Champlain in Moncton for TD Bank Group.

In addition to the 1.2 million-square-foot office component, Cadillac's latest development for downtown Toronto will include 339 parking stalls and 12,290 square feet of retail space.

Teachers' has offices in the Xerox Tower at 5650 Yonge Street in the north end of the city where it occupies about 305,000 square feet, according to CoStar data.


"Toronto is a vibrant and international city, and the downtown core is a major hub of finance. We believe this is the right time to plan our move closer to our partners and the pool of talent we will need to see us into the future. This new building will have many attractive elements to help foster teamwork and innovation, in a healthy and sustainable environment that is close to many different transit options," said Ron Mock, president and chief executive of the Ontario Teachers' Pension Plan, in a statement. "We are very pleased to be moving into a building run by Cadillac Fairview, our real estate subsidiary and a global developer of leading-edge office space."


Sullivan said its latest projects reflects demand for "prime urban locations," and is part of the demand for high-quality, amenity-rich office environments across the country. "We take great pride in our ability to work with our clients to meet those needs ultimately," he said.

Cadillac said 160 Front Street will be designed by Adrian Smith + Gordon Gill Architecture, in collaboration with B+H Architects as the architect of record, and will offer a distinctive silhouette on the downtown skyline while meeting prospective tenant "desire for efficient design and environmental sustainability in both construction and operation."

The site is one city block from Union Station and with nearby access to the Gardiner Expressway.

Cadillac said its partnership with the Investment Management Corporation of Ontario represents a continued collaboration on a number of projects on behalf of the latter's client, the Ontario Pension Board. Their collaborations include the new office tower under construction at 16 York Street in Toronto, as well as ownership in existing office properties in Toronto and Vancouver, including RBC Centre and Toronto-Dominion Centre.


"Investing in real estate is an integral part of our investment strategy because it is well-aligned to Ontario Pension Board’s return objectives," said Brian Whibbs, managing director of real estate for IMCO, in a statement. "We value our strong relationship with Cadillac Fairview, and we are proud to be a part of this exciting project, as we continue to focus on delivering value to OPB through the acquisition and development of high-quality assets that generate strong results over the long term."

Editor’s Note: This article has been updated to reflect Teachers' current lease at 5650 Yonge Street.


Garry Marr, Toronto Market Reporter  CoStar Group   
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