Dream Office REIT has announced the sale of 720 Bay Street, Toronto, for $135 million. The transaction is expected to close in the first quarter of 2023.

Located in the Queen’s Park vicinity, the 248,000-square-foot, 11-storey, Class B office building is fully leased to the Ontario government. It was built in 1989 and is BOMA BEST gold certified.

The unmortgaged property is currently pledged as security for Dream’s $375 million revolving credit facility. The REIT intends to use net proceeds from the sale to repay debt and repurchase Class A units through its normal course issuer bid program.

Dream continues to hold about 3.5 million square feet of office properties in downtown Toronto.