(Source: Wall Street Journal)

In the midst of a dismal sales market, a Toronto investment firm has pulled off a deal that harkens back to the days of soaring values.

But Northam Realty Advisors Ltd.’s sale of 151 Front Street West in Toronto for 192 million Canadian dollars ($180 million) says more about the property than it does about the market. The building is a high-tech data center, a type of specialized real estate designed to store computers, servers and network equipment. In some cities, it is one of the few property types that is holding up against weak demand thanks to rising video and other types of traffic on the Internet.

The buyer of the building is Allied Properties Real Estate Investment Trust, a Toronto REIT, that has carved a niche for itself offering tenants office space in retrofitted older light-industrial buildings in some of Canada’s biggest cities. A data center is an unusual purchase for Allied, but the company sees it as a valuable marketing tool; it will make the data-center space available to tenants in its other Toronto properties.

Read Maura Webber Sadovi’s full article “Toronto Sale Goes Against Grain” in the Wall Street Journal (October 28, 2009).

Sale of 151 Front Street West was originally posted by BuzzBuzzHome on October 14, 2009, here.

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