Prologis has acquired a massive class A industrial property in the Greater Toronto Area from Rona’s parent company for $361 million under a sale-leaseback, Green Street News reported.

Jordan Lunan, vice-president of CBRE’s Toronto West capital markets team, announced the deal on LinkedIn but did not disclose the purchase price. CBRE and RBC Capital Markets co-brokered the sale.

The 1.3-million-square-foot property is located at 8450 Church Road in Milton, Ont., and serves as Rona distribution centre.

New York-based Sycamore Partners purchased the 79.3-acre site. Rona will lease the site back from Prologis, according to Green Street.

“This acquisition represents our commitment to acquiring best-in-class modern
logistics facilities, to facilitate further growth for our customers in key markets
such as the GTA,” Bill Bates, vice president and investment officer for San Francisco-based Prologis, said in a statement to Green Street. “We remain focused on a disciplined
and data driven approach to our capital deployment business, while assessing
every opportunity in this market.”

The purchase price equates to $270 per square foot.

Sycamore Properties acquired the property in February 2020 for $330 million from Lowes Home Improvement, the former parent of Rona. Target built the distribution centre in 2012 before selling it to Lowe’s in 2015 for $106 million, according to Green Street.