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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Category: Weekly Market Report Newsletter
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
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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Radio Arts condo development to begin in November
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DiCenzo Homes proposes a 12-storey residential tower on Hamilton Mountain
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Alex Manojlovich’s Weekly Market Report: Hamilton Council approves 1,341-unit condo development
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Hamilton’s Highest Value Development Projects for 2022 (so far)
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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.
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