Ford announces construction on new Hamilton GO Station
The GHA Sales Transaction Database offers you this week’s CRE transaction activity. |
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Author: Jessica Wright
What is an Accredited Investor?
FIRST THINGS FIRST, WHY ACCREDITED INVESTING?
Accredited investing opens up a whole shiny new world of investing made available to you. These include private equity, venture capital, angel investing, and hedge funding.
WHAT IS AN ACCREDITED INVESTOR?
The accredited investor is someone who has a special status so that they can have investments that are typically more high-risk. While this definition varies from country to country, it also varies from province to province. While there’s no formal process in Ontario, legislation requires that you meet specific criteria to participate in certain investments. This simply means you’ll need to be prepared to provide documentation proving you meet the criteria.
THE CRITERIA
According to the Ontario Securities Commission (OSC), an accredited investor means you have a:
- Net income before taxes of more than $200,000 in each of the two most recent calendar years and expected net income of more than $200,000 in the current calendar year.
- Net income before taxes combined with a spouse of more than $300,000 in each of the two most recent calendar years and expected combined net income of more than $300,000 in the current calendar year.
- Financial assets, alone or with a spouse, of at least $1 million before taxes but net of related liabilities
- Financial assets include cash and bank deposits but not the value of a house.
- Net assets, alone or with a spouse of at least $5 million. Net assets generally include all of your assets after subtracting your debt.
Contact the OSC’s Inquiries & Contact Centre to learn more about these rules.
Are you an accredited investor?
Dundas seniors housing demolition for 11-storey condo proposed
This week witnessed a subpar amount of transitions. It appears the CRE markets are feeling the impact of increased interest rates in what is already traditionally the slowest month of the year.
The largest transaction for the third consecutive week was a Hamilton residential land sale. Cedar City Developments purchased 31 acres of land on Stoney Creek mountain near Elfrida for $15.4 million ($487,000/acre).
Hamilton hasn’t witnessed a multi-residential transaction in the month of September. This is notable as the city hasn’t gone a month without a multi-residential transaction since November of 2021. However, September transactions are still trickling in. In addition, multi-residential remains arguably the strongest asset class, and rental rates continue to escalate as more home buyers are removed from the market with rising interest rates.
In the news, the proposal for an 11-storey condo tower includes plans to demolish Dundas seniors housing, the Hagersville quarry project explained, and the Ontario government is investing $90 million into skilled trades programs.
We’re moving!
Sept. 28 was Forge & Foster’s last day at 67 Frid St.
As of Oct. 11, our new address will be: 29 Harriet St. Hamilton, ON L8R 2E5
The GHA Sales Transaction Database offers you this week’s CRE transaction activity.
News Headlines
Dundas seniors housing demo for 11-storey condo proposed
The Hamilton Spectator, October 3, 2022
Empire’s planning application for Hagersville quarry property explained
The Hamilton Spectator, September 27, 2022
Ontario government investing $90M in skilled trades programs
CBC News, September 26, 2022
Long approval times, high municipal fees adding ‘unnecessary costs’ to new GTA housing: Study
CBC News, September 27, 2022
Kitchener 8 storey, 166 unit development approved
The Record, September 27, 2022
Amazon fulfilment facility under construction in Cambridge
The Record, September 28, 2022
Toronto’s largest film studio announce major expansion
BlogTO, September 27, 2022
Receiver selling Applewood Marketplace development project and land in London, Ont
Steve McLean, RENX
Two adjacent development sites in London, Ont., where Phase 1 of the 584-unit residential and retail Applewood Marketplace is nearing completion, have been put on the sale block by a court-appointed receiver.
EY is handling the sale, having been appointed receiver over all the assets, undertakings and properties of Applewood Marketplace Inc.
Construction of the first phase of the north London development was about 75 per cent complete but had experienced a series of delays that added to its costs and eventually put the project into receivership.
Applewood Marketplace consists of a five-storey building with 107 rental apartments, nine rental townhouses and 15,000 square feet of ground-floor commercial space on 2.5 acres at 865 Kleinburg Dr.
However, work at the site had stopped on June 1, according to documents filed as part of the proceeding.
Emblem Purchases Third Downtown Development Site
This week saw an average amount of transactions, with Brantford noticeably slow during August and September.
The most significant transaction for the second consecutive week was a high-density residential land sale in Hamilton. Emblem Developments has purchased its third site in the city, 100 John St. N. and 61 Wilson St. — currently the site of an office and a retail building — for $8 million (approximately $13.8 million/acre). It’s slightly above market value, but this valuation could signify things to come with increasing condo unit values.
In the second largest transaction of the week, NorthWest Healthcare Properties REIT sold a medical office building for $294/sq. ft in Hamilton‘s east end.
In the news, more details have been revealed about last week’s Connolly sale, the Television City condos are expected to be built by 2026, and a study has found that OLT decisions have favoured developers 97% of the time.
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News Headlines |
Connolly Site Sold
The Hamilton Spectator, September 22, 2022
Television City condo expected to be built in 2026
The Hamilton Spectator, September 9, 2022
Ontario Land Tribunals decisions have favoured developers 97% of the time
The Hamilton Spectator, September 20, 2022
Deeply affordable Cityhousing building first of its kind in Hamilton
The Hamilton Spectator, September 24, 2022
Plan to build 23 homes on small lots in Kitchener sparks concerns over traffic
The Record, September 21, 2022
Renting growing twice as fast as home ownership
CBC News, September 21, 2022
Job vacancies hit record high in Q2
BNN Bloomberg, September 20, 2022
Connolly Site at 98 James Sold to Milborne Group
The number of transactions this week was about average, with Niagara seeing an increase in activity while Brantford was a no-show.
This week’s most exciting and expensive sale was at 98 James St. S. in downtown Hamilton. The Connolly Site sold for $24 million ($75 million/acre). It’s an astronomically high price, but it could make sense at an estimated value of $80/buildable sq. ft, although that’s still very high for Hamilton. Alternatively, the price could include some other form of value, like an approved site plan or pre-construction deposits.
The former James Street Baptist Church, constructed between 1878 and 1882, has had a tumultuous decade:
- It was demolished in 2014, except for its historic stone facade, by developer Louie Santaguida for a planned $80-million, 30-storey condo development dubbed The Connolly.
- That project was placed in receivership in 2017.
- In 2018, it was sold to Hue Developments, which proposed a 31-storey tower with 315 units.
- The buyer this time is Toronto’s Milborne Group. They bill themselves as Canada’s leading marketer of urban, master-planned, multi-phased communities. They’re affiliated with the 1 Jarvis development and the 75 James Condominiums, kitty-corner to 98 James St. S.
In the news this week beyond the Connolly, Lamb Developments has sold a 50% interest in 428 Main St. W. in Hamilton to local developer New Horizon Development Group for $2.25 million ($2.8 million/acre). Once the site of Zizzo’s Car Care & Mor (sic), 428 Main St. W. is now a vacant lot across from the Westgate on Main condo development by Matrix Development Group.
In the Niagara region, Starlight Investments has purchased a 75-unit multi-residential asset in Welland for $11 million (nearly $150,000/unit).
This week’s second-largest transaction was in Beamsville, where a grocery-anchored retail plaza sold for $15.1 million ($280/sq. ft).
In the news, Empire Homes has proposed 1,000 homes in Hagersville, Rentals.ca released their September rental report, and the former GM site in St. Catherines has been approved for high-density zoning.
News Headlines
Empire Homes proposes 1,000 homes on Hagersville quarry site
The Hamilton Spectator, September 13, 2022
Dispute over Land Back Lane injunction continues at court
CBC News, September 13, 2022
September 2022 Rent Report
Rentals.ca, September 2022
St. Catharines high-density zoning approved for former GM site
The Standard, September 13, 2022
Redevelopment of Guelph parking lot approved
The Toronto Star, September 13, 2022
Waterloo residents fret as developer pushes for taller than permitted development
The Record, September 10, 2022
Monthly Housing Update
RBC, September 15, 2022
Housing inventory may reach crisis point in major Canadian cities
The Financial Post, September 12, 2022
Editorial: Canada’s population is booming and we aren’t building nearly enough
The Globe & Mail, September 17, 2022
Hamilton rated one of Canada’s best locations to invest
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REITs still upbeat on Canada’s industrial real estate sector
Steve McLean, RENX
Commercial Sep. 13, 2022
Despite an unprecedented amount of ongoing industrial facility development, continued strong demand has kept vacancy rates across Canada below two per cent.
A session at Sept. 8’s RealREIT conference at the Metro Toronto Convention Centre, moderated by RBC Capital Markets Real Estate Group managing director David Tweedie, featured four executives discussing how recent events have impacted the asset class and their expectations for the future.
Tweedie opened the session with a presentation outlining the state of the market.
“From a fundamentals perspective, we’re sitting at record national-low availability, double-digit rental rate growth continues in most major markets and (there are) record tenant absorption levels,” Tweedie said. “But on the headwind side, we’re facing moderating GDP, elevated inflation, the potential risk of recession in 2023 and continuing rising interest rates.”
Radio Arts condo development to begin in November
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Meet RPT Orla Hares, Founder of Gaitway Neurophysio
Orla is passionate about physiotherapy
She specializes in helping to manage symptoms of Parkinson’s disease. Because Parkinson’s disease affects everyone differently, she creates individualized plans for her clients.
With patience and compassion, Orla gives her clients the confidence to achieve ambitious goals.
You’ll find Gaitway Neurophysio‘s fully-renovated, custom facility in ANNEX. The ANNEX district aims to provide a space, lifestyle, and culture to support Canada’s next generation of innovators.
Orla brings over 20 years of experience in neuro-rehab. She has worked in the UK, Ireland and now Canada and brings this wealth of knowledge to her practice at Gaitway Neurophysio.
Orla provides dynamic and innovative programming and research for those with neurological diseases, more specifically, Parkinson’s disease.
Programs and classes at this new location include:
- Parkinson’s Wellness Recovery Moves classes (PWR!Moves)
- Rock Steady boxing classes
- Pilates classes
- Zumba classes
- Yoga classes
Other services include physiotherapy, kinesiology, massage therapy, and fitness training. Speech therapy, psychotherapy and dietician services will be added by the end of 2022.
Recently, Orla has teamed up with co-investigator Anita Saltmarche on a clinical trial using light therapy for the management of Parkinson’s symptoms. The preliminary results of case studies are exciting and noteworthy.
All are welcome to visit Gaitway Neurophysio.
Classes are not just for those with Parkinson’s!
CONTACT GAITWAY NEUROPHYSIO
(905) 974-9892
orla[@]gaitwayneurophysio.com
150 Chatham St., Unit 7
Hamilton, Ontario
L8P 2B6
Directions
Drive to Mabel’s Labels, then turn right into the parking lot. Gaitway Neurophysio is at the back of the parking lot. Gaitway Neurophysio is fully accessible with parking out front and easy access to HWY 403.
ABOUT ANNEX
Located next door to McMaster Innovation Park, ANNEX is also close to downtown Hamilton, HWY 403, the TH&B Railway, and Chedoke Golf Club. Many properties within ANNEX feature free parking and flexible spaces ready to be customized to suit your business.
The ANNEX is zoned M1 (Research & Development) and is ready to welcome tenants in the areas of biotech, medical, hospitality, advanced manufacturing, hospitality, and beyond.
CONTACT FORGE & FOSTER’S LEASING SPECIALIST
Book your private tour of ANNEX and find your future space
leasing[@]forge&foster.ca
(888) 410-9440