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Connolly Site

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

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Hamilton rated one of Canada’s best locations to invest

Forge & Foster is moving! Sept. 23 will be our last day at 67 Frid St. By Sept. 27, we’ll be set up at 29 Harriet St., in the exciting, high-growth film district of Barton-Tiffany.
This week witnessed a large volume of transitions, typical for the transition period between months. It’s great to see these patterns holding even as interest rates continue to rise.
This week’s largest transaction occurred south of Kitchener in North Dumfries, where an industrial building on a large swath of land sold for $19 million.

The second largest transaction took place in Waterloo, where Village Developments purchased almost an acre of residential land for $14 million.

The largest transaction in Hamilton was in Stoney Creek, where 12.45 acres of industrial land sold for $13 million (approximately $1 million/acre).

In the news, Hamilton has been rated as one of Canada’s best locations to invest, New Horizon Development Group submitted a bid for taller buildings, and Toronto‘s average condo rents have surged to a record high.

We’re moving! 
Sept. 23 will be Forge & Foster’s last day at 67 Frid St.
As of Sept. 27, 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

Hamilton rated as one of Canada’s best locations to invest 
Invest In Hamilton, September 2022

Dundas site receives conditional approvals for 4 storey, 51 unit development
The Hamilton Spectator, September 12, 2022

New Horizon Development’s new bid aims taller
The Hamilton Spectator, September 12, 2022

Home construction authority moves to revoke Burlington developer’s license
The Hamilton Spectator, September 10, 2022

6 storey building set to replace three houses in Waterloo
The Record, September 9, 2022

Kitchener’s Mill St plan would transform area around LRT station with six towers up to 1,500 units
The Record, August 29, 2022

August 2022 Rent Report
Rentals.ca, September 2022

Toronto condo rents surge to record average $2,806/month
The Toronto Star, September 7, 2022

Ontario passes strong mayor legislations, providing Toronto and Ottawa veto power
CBC News Toronto, September 8, 2022

Bank of Canada expected to hike interest rate to 3.25%
The Hamilton Spectator, September 7, 2022

Tal: Interest rates could deepen Canada’s rental housing crisis
RENX, September 8, 2022

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151-Reverchon-Ave

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.”

READ MORE >>

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Renderings for the Radio Arts building, which is set to begin construction in November at 206 King St. W. in Hamilton.

Radio Arts condo development to begin in November

This week witnessed below-average transaction volumes. However, there was a variety of noteworthy deals.

This week’s largest transaction was in Hamilton, where Guido De Brès Canadian Reformed High School Society purchased a former elementary school for $15.5 million ($175/sq. ft). That price is in line with a former school in Dundas that sold two weeks ago.

In the hospitality sector, Big Coffee Inc. purchased the former Masonic Hall in Dundas for $1.65 million ($332/sq. ft), and Radius Hospitality Corp. picked up 18-20 Hess St. S. for approximately $2.3 million ($446/sq. ft).

Also of note: local firm Effort Trust purchased 37.75 acres of vacant land in Thorold for $4.7 million ($124,000/acre).

In the news, the Radio Arts condo development will start construction in November, Hamilton saw a big drop in per capita municipal spending, and Canada will fund a rent-to-own program as part of its $2 billion housing plan.

The GHA Sales Transaction Database offers you this week’s CRE transaction activity.
News Headlines

Plan underway to remove 206 King St W building debris, Radio Arts development to commence November
CHCH News, September 4, 2022

Hamilton sees big drop in per capita municipal spending 
The Hamilton Spectator, August 27, 2022

MLS ® Residential Market Activity for REALTORS® Association of Hamilton and Burlington Areas
August 2022

Canadian universities rushing to address student housing shortage
The Globe & Mail, August 28, 2022

Revised plan for Schneiders site in Kitchener includes 12 new buildings, 2,400 rental units
The Record, August 26, 2022

Three highrises more than 500 rental apartments proposed for South Kitchener
The Record, August 31, 2022

Labour shortage has Canada planning to pick and choose immigrants 
The Financial Post, August 31, 2022

Canada to fund rent-to-own program under $2 billion housing plan
The Financial Post, August 30, 2022
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Orla Hares

Meet RPT Orla Hares, Founder of Gaitway Neurophysio

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Programs and classes at this new location include:

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

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CONTACT FORGE & FOSTER’S LEASING SPECIALIST

Book your private tour of ANNEX and find your future space
leasing[@]forge&foster.ca
(888) 410-9440

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DiCenzo Homes has proposed a 12-storey, 165-unit residential tower at 639 Rymal Rd. in Hamilton.

DiCenzo Homes proposes a 12-storey residential tower on Hamilton Mountain

It’s great to see that over the last two weeks, we’ve continued to see good deal flow, despite interest rates tightening activity to some extent.

This week’s largest transaction took place in Grimsby, where Anatolia Group purchased 35.3 acres of vacant industrial land for $56.3 million (nearly $1.6 million/acre).

The price of Hamilton industrial land continues to escalate.

Other notable transactions include:

  1. A downtown corner property at 150 Main St. E. was purchased for $6.1 million ($9.5 million/acre), which is comparable to high-density residential land values.
  2. Granite REIT purchased 10 acres of residential land in Brantford for $6.3 million (nearly $630,000/acre).

It’s also great to see that multiple office transactions have taken place over the last two weeks, with the majority being medical-related.

In the news,

  • DiCenzo Homes has proposed a 12-storey residential tower.
  • Hamilton Council rejected a plan to exempt part of Ancaster from housing intensification.
  • The national industrial vacancy rate hit a record low of 1.6%.
The GHA Sales Transaction Database offers you this week’s CRE transaction activity.
News Headlines

Hamilton Design Review Panel: 639 Rymal Rd. W.
August 2022

253 King William development to lease units for as little as $85/month
Fast Company, August 19, 2022

Council rejects plant to exempt part of Ancaster from housing intensification
The Hamilton Spectator, August 16, 2020

Leap of faith: Hamilton church converted into apartments
The Hamilton Spectator, August 23, 2020

Evolving Workforces: Toronto Lab Market H1 2022 Report — A Nascent Real Estate Market On The Rise
CBRE Research, August 2022

Councillors approve townhouse development on Rymal Rd
The Hamilton Spectator, August 16, 2020

Last Stelco blast furnace demolished on Hamilton bayfront
The Hamilton Spectator, August 17, 2020

New Vision church needs $3.9M to transform into 1,000 seat music venue
CBC News, August 22, 2022

New Hamilton census data 
The Hamilton Spectator, August 24, 2022

How Hamilton, Burlington have changed since last census
The Hamilton Spectator, August 24, 2022

Hamilton’s Beasley Park to receive project funding
CBC News, August 27, 2022

Granite kicks off Brantford business park
RENX, August 19, 2022

Waterloo’s sky-rocketing rental prices show no signs of slowing
The Record, August 24, 2022

Niagara needs 32,000 homes over next decade
The St. Catharines Standard, August 22, 2022

Toronto area CRE deals total $7B, up 43% y/y
The Toronto Star, August 18, 2022

Ontario’s 1.5M homes by 2031 not likely 
The CBC News, August 16, 2022

National industrial vacancy rate hits record low of 1.6%
The Globe & Mail, August 22, 2022
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New Horizon Development plans to build 1,341 units at 1842 King St. E., where a Brock University satellite campus once operated.

Alex Manojlovich’s Weekly Market Report: Hamilton Council approves 1,341-unit condo development

New Horizon Development plans to build 1,341 units at 1842 King St. E., where a  Brock University satellite campus once operated.

 

This week witnessed a good volume of deals, which is to be expected when entering a new month. It’s great to see this pattern holding even when the current level of CRE transactions appears muted overall.

This week’s largest transaction was for an industrial building near Stelco in Hamilton. 460 Sherman Ave. N. sold for $19.9 million ($161/sq. ft). It’s a good price all around, considering the location and size of the asset.

In Stoney Creek, a former elementary school on 5.87 acres at 299 Barton St. sold for $5.3 million ($900,000/acre, $134/sq. ft). The site is adjacent to industrial properties, so it’s uncertain if it will remain zoned as institutional or if it will be rezoned as industrial. The price point meets market valuations for both asset classes.

Multiple office transactions took place this week, which is great to see. Over the last few years, it’s been very rare to see office transactions outpace land and industrial transactions.

In the news, Hamilton City Council approved a 13-storey condo building on a former Brock University site, Mission Services is leaving their James St. N. location in Hamilton’s downtown, and Sierra Supply Chain Services has opened a state-of-the-art, $65 million processing facility in Hamilton.

The GHA Sales Transaction Database offers you this week’s CRE transaction activity.

I hope you’re enjoying your summer! I’ll be off next week, so look for your next Market Update on August 30.

News Headlines

Condos to rise on 13 storeys on former east Hamilton university site
The Hamilton Spectator, August 11, 2022

Mission Services leaving longtime downtown James St North location
The Hamilton Spectator, August 14, 2022

Residents, developers clash over height of Jamesville project
The Hamilton Spectator, August 11, 2022

Ancaster’s Wilson St to get another townhouse development
The Hamilton Spectator, August 15, 2022

Hamilton median household income increases 14% in 5 years
Invest in Hamilton, August 8, 2022

Councillors OK controversial Stoney Creek warehouse
The Hamilton Spectator, August 15, 2022

Sierra opens state-of-the-art $65 million facility in Hamilton 
The Hamilton Spectator, August 08, 2022

Ontario set to introduce ‘strong mayor’ legislation to speed up housing development
CBC News, August 10, 2022

Toronto to receive new McMaster campus by year end 
Storeys, August 9, 2022

Developers criticize Toronto development fee increase
CBC News, August 9, 2022

New complete community could add 3500 homes, schools to Kitchener’s Western edge
The Record, August 10, 200

Office Report Q2 2022
Whitney Commercial Real Estate Services, Waterloo Region

Despite low unemployment rates, labour shortages persist in Canada
The Toronto Star, August 10, 2022
Exceptional Office Space for Lease

This turnkey office space offers prime exposure and a fantastic opportunity for signage on the main artery Wellington St. N. at Ferrie St.

The location’s well suited to medical professionals because of its proximity to the Hamilton General Hospital and the Ron Joyce Children’s Health Centre. (It’s just 300 metres away!)

This ample space in the downtown core includes:
— reception
— boardrooms
— private offices
— staff lunchrooms
— a wide, open riser stairway
— washrooms on both floors
— nearly 9,000 sq. ft available across 2 units

PRICED AT JUST $6+/SQ. FT!
This historic building was part of the Sawyer-Massey Agricultural Plant and previously housed the Gold Book Business Directory offices. Now, it’s graced by a mural of Nikola Tesla by sensational local artist Lester Coloma. The portrait celebrates that Hamilton was the first city in Canada to receive widespread electric power, which attracted innovative industries.

Set up your business here
& carry on this address’ legacy of innovation.

Please e-mail us at leasing[@]forgeandfoster.ca or call 289-203-6054, and we’ll schedule a private tour for you at your convenience.
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Hamilton’s Highest Value Development Projects for 2022 (so far)

This week witnessed lower than typical volumes, with Hamilton being the top performer for the third consecutive week and Kitchener-Waterloo/Cambridge providing a very, very rare no-show. St. Catharines also did not register a commercial real estate transaction.

With the Bank of Canada interest rate increases, we’re beginning to materially see a slowing in the market, however, values have continued to hold.

This week’s largest transaction occurred in Brantford, where 102 acres of vacant prospective residential land at 531 Powerline Rd. sold for approximately $24 million or $238,000/acre, which usually indicates the land requires substantive land entitlement before development can be implemented.

Of note for Hamilton, Vrancor Group purchased 21 Queen St N, a house abutting their King St and Queen St block development, for $500,000 or $10 million/acre.

In the news, The Spec provided a story on Hamilton’s highest value development projects for 2022, IKEA purchases 65 acres of Hamilton land (as reported last week), and the unemployment rate drops in Hamilton.
News Headlines

Hamilton’s highest value development projects for 2022

IKEA purchases 65 acres of land in Hamilton for $82 million

Unemployment rate drops, economic growth ‘optimistic’ for Hamilton 

Hamilton architect says Barton apartment would be first in 100 years

July 2022 RAHB Stats

North American leader in logistics expands facility in Hamilton

The first tiny home show in Hamilton takes place this week 
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212 Glover Rd. in Hamilton

Alex Manojlovich’s Weekly Market Report: LiUNA files two non-decision appeals to OLT

The week’s most significant transaction was for this 65-acre vacant industrial site at 212 Glover Rd. in Hamilton.

This week witnessed a decent volume of deals, with Hamilton being the top performer for the second consecutive week.

The volume of transactions continues to be steady since the Bank of Canada increased its rate by 1.00% to 2.50% on July 13.

This week’s largest transaction occurred in Hamilton, where IKEA Properties purchased a 65-acre vacant industrial site at 212 Glover Rd. for $82 million (approximately $1.25 million/acre). This looks to be a good price, as the cost of industrial land in Hamilton is rising quickly. Specifically, this industrial land node close to Nebo Rd. has witnessed land transactions of $1.5 million for smaller parcels. Also of note is the neighbouring industrial land at 190 Glover Rd., which was purchased by RFA Capital for approximately $6 million ($1.2 million/acre).

This week’s second-largest transaction occurred in Kitchener, where Fusion Homes purchased 6.9 acres of residential land for $3.2 million/acre.

In the news, LiUNA has filed two non-decision appeals to the OLT, Metrolinx has released a video previewing how the LRT will be constructed, and the Toronto rental market is tightening.

News Headlines

LiUNA files two non-decision appeals to OLT
The Public Record, July 25, 2022

CityHousing Hamilton projects face $5.4M gap
The Hamilton Spectator, July 25, 2022

Metrolinx releases new video highlighting how Hamilton’s LRT will be constructed
In The Hammer, July 25, 2022

New noise study underway on City Centre development application
The Public Record, July 29, 2022

OPM moves into former Walmart, future NHDG development
The Hamilton Spectator, July 22, 2022

Widespread support for car-free King St experiment
The Hamilton Spectator, August 2, 2022

Intelligent Investment: Canadian Cap Rates & Investment Insights Report
CBRE Research, Q2 2022

Toronto rental market tightens as ‘uneconomical” projects get scrapped
BNN Bloomberg, July 22, 2022

More families are choosing multigenerational living amid Canada’s housing crisis
The Globe & Mail, July 25, 2022
in Editorial, Weekly Market Report Newsletter Posted by wpengine

Alex Manojlovich’s Weekly Market Report: Hamilton LRT construction to begin in 2024

The largest transaction in Hamilton this week was for this office building at 630 Main St. E.

This week witnessed a decent volume of deals. Hamilton was the top performer, while Brantford was a rare no-show.

The volume of transactions has been objectively healthy so far. However, it will be interesting to monitor the ripple effects caused by the Bank of Canada‘s latest rate increase.

This week, the area’s largest transaction was for an unaddressed property on Dobbie Dr. in Cambridge. The vacant industrial land parcel sold for $5.64 million (approximately $1 million/acre).

The largest transaction in Hamilton was for an office building at 630 Main St. E., which traded for $4.7 million ($243/ sq.ft). It’s a good price considering the asset class and location.

In the news, the Hamilton LRT process is underway, there are updates on several Hamilton development projects, GHA residential rental rates are rising quickly, and Toronto is increasing development charges by 46%.

The GHA Sales Transaction Database offers you this week’s CRE transaction activity.

News Headlines

Procurement process for LRT to start later this year, construction in 2024
CBC News, July 18, 2022

Two LiUNA towers to remake Hamilton skyline
Daily Commercial News, July 18, 2022

Condo development flattened by fire will go ahead as planned
The Hamilton Spectator, July 19, 2022

Winona builder appeals towering LiUNA Gardens plan to OLT
The Hamilton Spectator, July 18, 2022

New Horizon Development Group’s Stoney Creek tower plan headed to OLT
The Hamilton Spectator, July 19, 2022

Two-way Main St conversion part of Hamilton LRT design talks
The Hamilton Spectator, July 19, 2022

Barton St. parking lot could become vibrant residential infill
The Bay Observer, July 21, 2022

Mayor backs museum at waterfront
The Hamilton Spectator, July 20, 2022

Evolving Workforces: Scoring Tech Talent 2022 — North American Report
CBRE, July 2022

GTA condo rents climb at fastest pace on record
BNN Bloomberg, July 19, 2022

Toronto condo sellers turn to rental market
The Globe & Mail, July 20, 2022

Toronto council hikes development charges 46%
The Globe & Mail, July 19, 2022

BMO: BoC’s 1% point rate hike, a hammer to housing market
The Globe & Mail, July 18, 2022

Canada’s inflation rate hits 8.1%, but signs suggest peak is near
The Globe & Mail, July 20, 2022

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