Article
Institutional Capital Returns to Downtown Toronto with Sale of 123 Front St. W.
October 29, 2026 3 Minute Read
CBRE's National Investment Team and RBC Capital Markets Realty have sold Citigroup Place, at 123 Front St. W., on behalf of Oxford Properties Group.
The buyer, GWL Realty Advisors (GWLRA), acquired the ~344,000 sq. ft. Class A office tower on behalf of its institutional clients. The sale represents the first fully marketed office asset of scale to close in downtown Toronto since 121 King St. W. changed hands in 2021.
“This deal reinforces the narrative that institutional capital is coming back into the market,” says Jaysen Smalley, who led the process for CBRE with Kai Tai Li.
Income Backed by Blue Chip Tenants
Citigroup Place was 93% leased at closing, with a tenant base led by Citigroup, Teranet, Ticketmaster and Bruce Power. Completed in 1983 and extensively renovated in 2010, the 20-storey tower holds LEED Gold and BOMA BEST Gold certifications.
The building sits on a one-acre site at the southwest corner of Front Street and University Avenue, in the heart of the Financial District, and is connected directly to Union Station through the PATH. Approximately 12,000 sq. ft. of ground-oriented retail rounds out the asset, anchored by three dining and premium quick-service restaurants that benefit from heavy foot traffic along Front.
In-place rents at Citigroup Place sit under current market levels and leasing across the financial core is picking up. According to Smalley, 123 Front carries some of the most competitive gross rents of any tower within a tight radius of Union Station. “That leaves room for the new owner to raise rents as leases roll,” he says.
Redevelopment Possibilities
Beyond its income, the site offers long-term upside. Direct Union Station and PATH access, plus proximity to downtown amenities, make it a candidate for a trophy mixed-use development.
“A data centre could also feature, given rising demand for AI computing power and the presence of 151 Front St. W. next door,” Smalley says. “It's probably one of the most strategic locations in the country.”
Citigroup Place attracted domestic and foreign institutional and private capital. GWLRA, which had turned more bullish on the sector in the past year, prevailed.
“Its strong tenancy profile, durable lease commitments and location fundamentals align with the disciplined investment criteria we apply on behalf of clients, while supporting stable income and long-term portfolio performance,” Steven Marino, GWLRA's Executive Vice President, Portfolio Management, said in a release.
“This sizeable Class A transaction provides the downtown Toronto office market a current pricing benchmark and evidence that institutional buyers are willing to commit again,” says Smalley.
Recent Insights
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CBRE's National Investment Team and RBC Capital Markets Realty have sold Citigroup Place, at 123 Front St. W., on behalf of Oxford Properties Group.
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