Hamilton’s Highest Value Development Projects for 2022 (so far)
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Category: Weekly Market Report Newsletter
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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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
Alex Manojlovich’s Weekly Market Report: Exodus of Toronto suburbs driving Hamilton growth
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Alex Manojlovich’s Weekly Market Report: Emblem Launches Largest Downtown Hamilton Condo Project
This week witnessed some great action.
The retail asset class continues its return to consistency with a few smaller deals this week.
The largest transaction in Hamilton this week was for 250 Fruitland Rd. in Stoney Creek. This 19.64-acre piece of land sold for $23.562 million (approximately $1.2 million/acre). This is below market value for residential land. However, the parcel appears to be zoned agricultural currently.
Nearby, developer Melrose Investments purchased 4.44 acres for $900,000 ($202,000/acre), which is great value but probably includes more work than the Fruitland Rd. deal.
The largest transaction in the area occurred in Cambridge, where Argyle Capital Partners purchased a 200,000 sq. ft industrial building for $33 million ($165/sq. ft). It’s a slightly large purchase price given the market and size of the asset, but I wouldn’t be surprised if this were fair market value given the way industrial demand and industrial market lease rates continue to grow.
In the news, Emblem launches Hamilton’s largest downtown project, the COA moves forward with a 109-unit development project on Dundurn St., and the website has been launched for the 75 James Condo development by LiUNA.
The GHA Sales Transaction Database offers you this week’s CRE transaction activity.
News Headlines
Emblem launches largest downtown Hamilton condo project
RENX, June 27, 2022
75 James Condominiums official website
2022
Minor Variance re: 330 Dundurn St. S. eight-storey residential project
City of Hamilton Committee of Adjustment
New pocket track expands West Harbour GO train service
In The Hammer, June 28, 2022
Centre[3] expands into Forge & Foster’s 29 Harriet St. in the Bayfront Studio District
The Hamilton Spectator, July 4, 2022
Feds turnover Burlington Canal piers to HOPA for pedestrian use
Global News, June 28, 2022
June 2022 Rent Report
Rentals.ca
Blackstone sees opportunities in student housing, multi-family, life sciences and more
The Hamilton Spectator, June 29, 2022
London, ON to cut parking requirements
CBC News, June 24, 2022
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Alex Manojlovich’s Weekly Market Report: Condo Towers coming to Hamilton with new Slate development
This week witnessed excellent transaction levels.
The area’s largest transaction was in Hamilton at 970 Upper Wentworth St. Everest purchased the 79,000 sq. ft retail plaza for $26 million ($329/sq. ft). It illustrates a high price-per-square-foot for retail that was more commonplace pre-pandemic.
970 Upper Wentworth St. is across from the Lime Ridge Mall, which made the news recently thanks to Cadillac Fairview‘s proposal to demolish the former Sears building and replace it with two 12-storey residential towers.
It’s great to see retail continuing its comeback in 2022.
The region’s second-largest purchase was in Waterloo, where Lexington Park Real Estate Capital purchased a 31,800 sq. ft industrial building at 80 Lodge St. for $12.5 million ($393/sq. ft). That’s an absolutely massive valuation for industrial.
In the news, Slate plans to break ground on Corktown condo highrises in 2023; the OLT approved 25 storeys for Vrancor‘s residential project at 354 King St. W.; and DeSantis is planning luxury condos in rural Winona.
The GHA Sales Transaction Database offers you this week’s CRE transaction activity.
News Headlines
Hamilton condo towers on Slate’s busy development slate
RENX, June 24, 2022
OLT approves 25 storeys at 354 King St W
The Public Record, June 28
Luxury Fifty Rd condos to replace rural Winona homes
The Hamilton Spectator, June 27, 2022
City to appeal $100/acre tax ruling on Hamilton steelmaking land
The Hamilton Spectator, June 18, 2022
US tech company focused on trust verification opening Canadian office in Hamilton
The Hamilton Spectator, June 22, 2022
Hamilton mountain residents still cautious about proposed development of former Sherwood Centre Bowling Lanes
The Hamilton Spectator, June 22, 2022
Canadian industrial to continue delivering historic returns
RENX, June 22, 2022
Toronto could see up to 5,000 condo unit cancellations
The Globe & Mail, June 18, 2022
Toronto’s housing crisis of 1922 rooted in policies that still make housing unaffordable
The Globe & Mail, June 17, 2022
Calgary Tower office space may make way for farming
Calgary Herald, June 21, 2022
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Alex Manojlovich’s Weekly Market Report: OVG to head up Hamilton arena reno
The week saw below-average transaction levels. However, it’s typical to see regressed transaction levels right after the beginning and end of the month.
In Hamilton, the largest transaction was Fengate Asset Management‘s purchase of a house on 2.25 acres for $2 million ($888,889/acre). The property is adjacent to the 75 acres of airport land Fengate purchased in April 2021. This new purchase provides them with street front access to Airport Rd.
The week’s largest purchase in the area was in Waterloo, where IN8 Developments purchased an office building for $9 million ($169/sqft). It’s an interesting purchase because IN8 Developments is known mainly for residential developments. As an office acquisition (as opposed to residential), the dollar value per square foot is low. It could indicate some vacancy, high capital expenditures or softening office values.
Recently, office transactions are becoming more frequent, however, not all office transactions are at peak values. In any case, it’s great to see demand increasing to pre-pandemic levels.
In the news, the American venue group OVG will take on their first Canadian project with the renovation of Hamilton’s FirstOntario Centre (formerly Copps Coliseum); Hamilton City Council and Vrancor have reached a deal for 354 King St. W.; and in downtown Hamilton, a three-alarm blaze levelled a 1920s-era building slated for redevelopment.
The GHA Sales Transaction Database offers you this week’s CRE transaction activity.
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News Headlines
U.S’s OVG heads up Hamilton arena renovation in first Canadian project
The Globe & Mail, June 14, 2022
City Council and Vrancor reach deal on 354 King St W development
The Public Record, June 20, 2022
Shopping centre landlords adding density
Retail Insider, June 13, 2022
Future MIP tenant OmniaBio announces private investor
CCRM, May 31, 2022
Giant fire collapses historic downtown warehouse: “total loss”
CBC News, June 18, 2022
Small airports such as Hamilton International see strong rebound
The Globe & Mail, June 13, 2022
Rents in cities near Toronto are soaring
The Toronto Star, June 13, 2022
Canada Monthly Mortgage Commentary May 2022
CBRE, May 30, 2022
Most REITs won’t feel rate hike impact unit 2025
BNN Bloomberg, June 15, 2022
Toronto’s The Well is now 98% leased
RENX, June 16, 2022
Alex Manojlovich’s Weekly Market Report: Slate purchases 800 acres of Stelco land for $518 million
This week witnessed slightly below-average transaction levels.
In Hamilton, the largest transaction was for a retail plaza located across from Westdale Secondary School. The retail and office property sold to Westdale Properties for $14,850,000 ($277/sqft). It’s a decent price considering the large office exposure.
Kitchener-Waterloo witnessed two massive transactions. The largest was for 52 acres of industrial land in Cambridge. This property was purchased by Fengate Asset Management for $91,320,000 ($1,750,000/acre). It’s an absolutely massive value for industrial land. It seems there’s no limit in sight.
There’s also lots of Hamilton news across the board:
- Slate has acquired 800 acres of Stelco land for $518,000,000 and plans to develop a world-class business park
- Eastgate Mall plans for 42 storey tower and multiple residential developments
- Lime Ridge Mall is planning two 12-storey towers
- The first iteration of the Delta Secondary School development has been released
- Slate looks to break ground on their Corktown development in 2023
The GHA Sales Transaction Database offers you this week’s CRE transaction activity.
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News Headlines
Slate closes on 12m sqft of Hamilton Stelco industrial land
RENX, June 1, 2022
Slate purchases Stelco land for $518m
The Hamilton Spectator, June 1, 2022
Eastgate Mall proposes 42 storey tower, multiple residential buildings
The Public Record, June 6, 2022
Lime Ridge Mall plan two 12 storey residential towers
The Public Record, June 4, 2022
First development for east Hamilton Delta Secondary school site submitted to City
The Public Record, June 2, 2022
Downtown boomtown: ‘Hamilton is the new Brooklyn’
The Hamilton Spectator, June 1, 2022
Slate set to break ground on Corktown Condos in 2023
The Hamilton Spectator, May 31, 2022
OLT supports Ancaster townhouse development for 15 Church St
The Hamilton Spectator, June 6, 2022
Hamilton vacant homes tax
The Hamilton Spectator, June 2, 2022
May 2022 RAHB stats
MLS ® Residential Market Activity for RAHB Areas, May 2022
Rent for 2 bedroom in Hamilton nears $2,000/month
The Hamilton Spectator, May 31, 2022
Hamilton Downtown BIA creates “memory lane” self-guided tour
The Hamilton Spectator, May 31, 2022
Montez buy Waterloo factory square office complex for $122m
RENX, June 2, 2022
London, ON Cherryhill Village sells for record $571M
RENX, May 30, 2022
Ontario home buyers flocking to Quebec
The Toronto Star, May 28, 2022
BoC raises rate to 1.5%
CBC News, June 1, 2022
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On Saturday, June 11 at 10 a.m., take time to celebrate and learn about the street art in downtown Hamilton through a guided tour.
You’ll find out the meaning behind some of Hamilton’s most beautiful street art and hear stories about the transformation of local buildings and businesses along the way.
The tour starts at One West Avenue S. It’s a Forge & Foster building adorned with the famous ‘Raise’ mural by Lester and Norman Coloma.
Your guides will lead you to locations around downtown. Bring water and wear comfy shoes. Register now before space fills up.
Admission is free but a donation to the Hamilton Community Fridge is welcomed.