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First property in Dream Office REIT portfolio sells in Saskatoon

Princeton Tower, with 137,227 square feet downtown, sold for the full asking price of $14 million
Princeton Head On
Class A 11-storey tower in downtown Saskatoon has sold. | CBRE

Princeton Tower, an 11-story Class A office and retail tower, located between 1st Avenue South and 2nd Avenue South in the core of Saskatoon's downtown, has sold for the full list price of $14 million, reports Mike Bratvold, commercial agent with CBRE, Saskatoon, who brokered the deal.

The tower offers 128,693 square feet of quality office space over 10 storeys, as well as 15,179 square feet of ground level leasable retail space connecting 1st Avenue with 2nd Avenue through an indoor retail corridor.

The tower is part of three-property portfolio for sale from Dream Office Real Estate Investment Trust, of Toronto. The remaining two Dream properties are Saskatoon Square, a 229,000-square-foot office tower at 410 22nd Street East, and a large parkade on Second Avenue, which includes a retail component.

CBRE is charged with selling the portfolio, which Bratvold conceded is “challenging” in a city with “significant vacancy issues.”

Saskatoon has a downtown office vacancy rate of 15 per cent.  However, CBRE also sold the near-vacant Nutrien tower, the twin of the Princeton, in July 2022, for $13.5 million.

A local developer, Duchuck Holdings purchased both the Nutrien and the Princeton towers.

“Duchuck Holdings sees a significant value-add opportunity by repositioning the assets and implementing an aggressive leasing strategy. CBRE has been engaged to lead this leasing program,” Bratvold said.