PROREIT has agreed to purchase a Montreal-area light-industrial building for $32.6 million.

The 134,340-square-foot building is located at 2945 André Avenue in Dorval, Que. The property is adjacent to Montreal Pierre Trudeau International Airport,

Montreal-based PROREIT said it has entered into a binding agreement, and the price represents a going-in capitalization rate of approximately 6.76%.

The seller was not identified. The REIT plans to finance the purchase through a new $21.2-million five-year first mortgage at a rate of 5.10% with the balance funded by proceeds from previously announced non-core property sales and a draw on available operating credit facilities.

“As we continue to successfully execute on our capital recycling program, we are pleased with this accretive acquisition which aligns with our growth strategy and medium-term goals of expanding our industrial footprint to 90% of base rent and $2 billion in total asset value,” said Gordon Lawlor, president and CEO of PROREIT, in a news release.

The single-tenant, fully occupied building features a warehouse clear height of 24 to 27 feet, along with “an efficient loading configuration,” according to the news release.

PROREIT did not identify the tenant, but publicly available information shows that the property serves as the head office for KD Services, a national logistics company that caters to the health and beauty sector.

The tenant fully occupies the building and It is fully occupied by a national logistics company under a long-term lease that includes annual rent escalations and a renewal option.

KD has occupied the building since 2013 under a long-term lease that includes annual rent escalations and a renewal option.

The deal is expected to close in the third quarter of 2024 and expand PROREIT’s portfolio to 115 income-producing properties.

Photo: PROREIT