Overview
In April 2022, Crown acquired 5770 Hurontario Street and 25 Milverton Drive in Mississauga through a broader transaction with Orlando Corporation. The assets included a 241,562 square foot office building at 5770 Hurontario and a 10,539 square foot RBC-occupied bank branch at 25 Milverton, together situated on 10.8 acres along the Hurontario corridor. At acquisition, the portfolio offered a combination of stable in-place income, leasing upside, and long-term redevelopment and repositioning potential. Crown underwrote a five-year business plan targeting a 13.6% levered IRR and a 1.8x equity multiple, supported by lease-up, capital improvements, and operational enhancements.
Strategy
Crown’s strategy centered on acquiring well-located real estate at an attractive basis and using active asset management to unlock embedded value. At 5770 Hurontario, the plan focused on leasing a meaningful vacancy block, upgrading common areas, introducing model suites and tenant amenities, and positioning the building to benefit from future transit investment along the Hurontario LRT corridor. At 25 Milverton, the fully leased RBC branch provided durable income and additional strategic optionality, including the potential to strengthen the long-term profile of the combined asset base through a future renewal.
During the acquisition process, Crown sourced an unsolicited expression of interest from a private developer for both properties. Rather than proceed exclusively with the original value-add program, Crown assessed whether an accelerated disposition would produce a stronger risk-adjusted outcome. That analysis showed that an early sale could materially outperform the original underwriting while avoiding future leasing risk, capital expenditure, and floating-rate debt exposure. Crown responded by shifting from a longer-duration repositioning strategy to a rapid monetization strategy aligned with prevailing market demand.
Results
Crown negotiated a sale of the portfolio for $50.2 million, representing a significant premium to the $43.25 million acquisition price. The disposition delivered returns 5.5x above original underwriting and validated Crown’s ability to recognize embedded value at acquisition, remain flexible in execution, and capitalize on market demand when an earlier exit offers the strongest outcome. The transaction highlights the value of disciplined underwriting and strategic agility in converting portfolio scale into realized gains.
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