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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

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. 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

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 HamiltonVrancor 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 

Aeon Studio Group, TAS and Forge & Foster aim to turn 14 acres of barren land at Tiffany and Barton into a film production hub.

Alex Manojlovich’s Weekly Market Report: Exodus of Toronto suburbs driving Hamilton growth

This week witnessed a great volume of deals, even by month-end standards.

This week’s big winner was residential land, plus it’s good to see the office and retail assets continuing to trade at pre-pandemic levels.

Hamilton‘s largest transaction was near the airport for an unaddressed piece of land on the corner of Upper James St. and Twenty Rd. The commercially zoned 61.63 acres sold for $13.6 million ($220,000/acre).

The area’s largest transaction was in Brantford, where 110 acres sold to Primont Homes for $46 million ($414,000/acre). This purchase price suggests further land entitlement may be required. Also of note, Concert Properties purchased two plots of land in Kitchener for prices suggesting high-density development.

In the news: Torontonians are flocking to Hamilton, Council debates affordability for Hamilton’s future film district, and CBRE’s 2022 Q2 Industrial and Office figures are released.

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

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News Headlines

Exodus of Toronto suburbs driving Hamilton growth
The Hamilton Spectator, July 7, 2022

Council debates affordability for Hamilton’s future film district
The Hamilton Spectator, July 5, 2022

MLS® Residential Market Activity for RAHB Areas
Realtors Association of Hamilton-Burlington, June 2022

Three 31-storey condo towers planned for downtown Hamilton parking lot
The Hamilton Spectator, July 4, 2022

Affordable housing projects in jeopardy, non-profits say
The Hamilton Spectator, July 6, 2022

City council approves Hamilton 100 agreement
The Hamilton Spectator, July 4, 2022

Hamilton Main St to be reduced from 5 to 4 lanes
The Hamilton Spectator, July 6, 2022

Tale of two markets: industrial space almost non-existent in KW, while downtown office vacancies among highest in Canada
The Record, July 6, 2022

Canadian Industrial Figures: Continued industrial demand sees heightening rental rate growth
CBRE, Q2 2022

Canadian Office Figures: Office market steadying, with Vancouver and suburban markets leading the recovery
CBRE, Q2 2022

Critics demand less talk, more action on zoning plan to tackle Toronto’s housing crisis
CBC News, July 1, 2022

Labour shortages leading to cancelled projects in superheated construction sector
The Financial Post, July 7, 2022

Canada to enter moderate and short-lived recession in 2023 warns RBC
The Globe & Mail, July 7, 2022

Sweating it out at a high-end gym attracts workers back to the office
The Globe & Mail, July 5, 2022

Brantford industrial land

Panattoni buys 423 acres of Brantford industrial land for $290M

In a purchase that single-handedly surpasses many quarters of investment activity in the Hamilton region, Panattoni Development Co. Canada has acquired a 423-acre tract of Brantford industrial development land for $290 million.

The land is bisected by Oak Park Road and bordered on the north by Powerline Road and on the south by Highway 403. The vendor was James Dick Ltd., which acquired the land out of bankruptcy several years ago and shepherded it through the zoning process. READ MORE >>

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