Allied Properties is set to acquire the retail and office component of 560 King Street West in Toronto for $28 million.

“This property will extend a near uninterrupted stretch of property we own on the north side of King Street West from 460 to 560,” said Michael Emory, president and chief executive officer of Allied. “As a result, it will enhance our ability to merchandise most of the storefront retail space along King West between Spadina Avenue and Portland Street.”

Comprising 24,402 square feet of gross lease area (GLA), the spaces are fully leased to retail and office tenants who are situated above 171 underground commercial parking spaces that Allied acquired in June 2014.

West of Brant Street, the property includes a heritage component with 11,305 square feet of retail GLA, 6,954 square feet of office GLA on two levels and a new retail component, which includes storage space.

The heritage structure has been fully restored, and the new structure is well configured for retail use with high ceilings, optimal depth and south- and east-facing frontage.

The purchase is expected to close on August 19, 2015, subject to conditions.