RioCan Real Estate Investment Trust has sold its 50% interest in FourFifty The Well, the purpose-built rental tower within The Well development in downtown Toronto, to existing partner Woodbourne Capital.
Green Street reported that RioCan received $155 million for its interest. The buyer and purchase price had not been disclosed when RioCan announced in May that it had reached a firm agreement to sell the property.
Woodbourne already owned the other 50% of FourFifty and now holds full ownership of the rental building. Based on the reported consideration, the transaction implies a value of approximately $310 million for the entire property, or about $524,000 per apartment.
The sale does not include RioCan’s interest in The Well’s retail component or the development’s other residential buildings.
FourFifty The Well is a 46-storey tower containing 592 rental apartments at 450 Front Street West. Completed in 2024, it is the only purpose-built rental building within The Well’s residential collection.
The tower was developed by RioCan Living and Woodbourne as part of the 7.7-acre mixed-use development, which includes retail, restaurants, offices, rental apartments and condominiums.
RioCan, Allied Properties REIT and DiamondCorp agreed in 2016 to sell most of The Well’s residential development rights to Tridel and Woodbourne. RioCan retained a 50% interest in the rental tower through its development and initial leasing period.
RioCan Monetizes Rental Portfolio
The FourFifty transaction forms part of RioCan’s wider strategy to monetize its RioCan Living residential rental portfolio and concentrate capital on its core retail business.
RioCan has sold or agreed to sell interests in several residential properties over the past year, including Frontier, Latitude and Luma in Ottawa, Brio and Underwood in Calgary, Litho in Toronto and Market in Montreal.
In May, the REIT said the FourFifty agreement was included in a group of completed and pending residential transactions expected to generate approximately $379 million in gross proceeds.
“The ongoing monetization of RioCan Living continues to unlock value from the residential rental portfolio, providing additional flexibility to redeploy capital in line with the Trust’s long-term strategy,” RioCan said previously.
The company has characterized its current direction as a retail-focused strategy centred on necessity-based properties in Canada’s most densely populated and high-demand markets.
RioCan is not withdrawing from mixed-use development or residential intensification entirely. Residential density can increase the value of existing retail land, support redevelopment and create additional customers for stores and restaurants.
The REIT is, however, reducing the amount of capital tied up in completed rental buildings after construction and leasing risks have largely passed.
RioCan Remains at The Well
RioCan continues to have exposure to The Well through the development’s retail component, which has evolved since beginning to open in late 2023.
Recent additions have included MUJI, Tilley and Kit and Ace, while Mine & Yours has operated temporary retail concepts at the property. Gotstyle, which previously operated a flagship location at The Well, has closed the store.
The tenant changes reflect the continued evolution of The Well as its retail component matures. RioCan’s sale of FourFifty is separate from that commercial portfolio and gives Woodbourne full control of the completed rental tower.
