Co-Investment and Strategic Repositioning Drive Full Lease-Up and Outperformance at 111 Peter Street

Overview

Crown partnered with LPs to acquire 111 Peter Street, a sizeable office asset in Toronto’s downtown west node. The acquisition expanded Crown’s access to larger-scale opportunities in a supply-constrained submarket attractive to TAMI tenants. Through a combined investment and leasing strategy, Crown repositioned the asset to better align with tenant expectations, enhancing both the physical environment and on-site amenities to drive demand, accelerate lease-up, and outperform underwriting.

Strategy

Crown’s strategy focused on leveraging the building’s large, contiguous floorplates and location within a high-demand TAMI corridor, while repositioning the asset to meet evolving tenant expectations. A targeted capital program included a lobby renovation to modernize the arrival experience and elevate the building’s competitive positioning.

In parallel, Crown enhanced the on-site retail offering to create a more amenity-rich environment, securing tenants such as FitSquad and Loblaws CityMarket. These additions strengthened the building’s daily utility and appeal to office users, supporting both tenant attraction and retention.

Leasing efforts were highly proactive, combining early renewals, backfilling vacancy, and strategically relocating or terminating smaller tenants to assemble larger contiguous blocks. This enabled Crown to capture demand from tenants seeking scale in a node with limited comparable options and to negotiate renewals at materially higher rental rates.

The LP co-investment structure allowed Crown to access a larger institutional-quality asset while maintaining control over leasing execution and asset strategy.

Result

Crown successfully leased all vacancies and renewed existing tenancies at rates significantly above initial underwriting, exceeding pro forma rental assumptions by 33% by Year 3. The building was stabilized at 100% occupancy with a strong and diversified tenant mix, supported by enhanced amenities and an improved tenant experience.

The repositioning of the lobby and introduction of high-quality retail materially contributed to leasing velocity and tenant retention, reinforcing the asset’s competitive standing within the downtown west market.

Following stabilization, the asset was sold to an institutional investor, unlocking value created through disciplined leasing execution, asset repositioning, and rental growth. Crown was retained as third-party property manager post-sale, ensuring continuity in operations and sustained asset performance.