Alex Manojlovich presents Forge & Foster’s Hamilton Commercial Real Estate Report Year in Review on January 25 at CoMotion on King at 115 King St. E. We encourage savvy investors and well-informed citizens alike to join us for valuable insights at this free public event. Refreshments provided.RSVP today!
This week witnessed good transaction levels in Hamilton and Kitchener, with Niagara and Brantford winding down.
This week’s largest transaction took place in Kitchener, where the Waterloo Catholic District School Board purchased land from the Grand River Conservation Authority for approximately $12.7 million.
Also in Kitchener, IN8 Developments purchased a downtown parcel for $10.3 million ($17.7 million/acre). IN8 Developments is currently working towards the City Centre Mall development in Hamilton.
In Hamilton, a similar transaction took place as Fengate Asset Management purchased 48 Ferguson Ave. S. for $7.5 million ($16.6 million/acre) for what appears to be a future development site. A high value that usually represents some approvals have been attained, however, I’m personally unaware of any.
In the news, Hamilton councillors approved Upper James property rezoning, the Hamilton airport cargo business is flourishing, and the Province has removed 7,400 acres from the Greenbelt.
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This week witnessed a good level of transitions for all subject markets.
For the second consecutive week, the largest purchase occurred in Kitchener, where a 58-unit, multi-residential building at 475-477 Lancaster St. W. sold for $16.5 million ($285,000/unit). It’s a slightly high purchase price, but that’s understandable, considering multi-residential is the most robust asset class.
In Hamilton, the most exciting transaction was for 230 James St. N. The downtown mixed-use building was purchased for $2.35 million ($358/sq. ft). This purchase price appears fair: In 2021 and 2022, James St. has witnessed similar buildings trade in the high $300s to low $400s/sq. ft.
Hamilton’s Design Review Panel has reviewed three proposals, including a 14-storey, 68-unit multi-residential development for the southwest corner of King and Caroline, which is currently the site of a small retail plaza.
The intersection is on the future LRT line and is attracting extensive development:
The northeast corner is the site of the Radio Arts residential development by Canlight.
The southeast corner saw a 30-storey proposal in 2021 by Vrancor Group.
Just one address to the east, McMaster University’s 30-storey graduate residence is under construction.
Also in Hamilton, Spallacci Homes purchased 5.92 acres of land near Lime Ridge Mall for $3 million. It’s a peculiar purchase as the site appears to be a cemetery.
The largest purchase this week took place in Kitchener. The 401 Group of Companies purchased an 81,000 sq. ft industrial building for $28 million ($344/sq.ft). That’s a high purchase price for an industrial facility, but it also includes approximately 3.5 acres of excess land.
In the news, Doug Ford has announced construction on a new GO Station in Hamilton, twin towers have been proposed in Stoney Creek, and Ontario plans to cut development fees on affordable housing.
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.
It’s been a quiet week for commercial real estate (CRE) transactions in Hamilton. February is turning out to be a low as a whole.
Hamilton’s most significant transaction was in Ancaster, where industrial commercial institutional (ICI) land traded for $7.6 million ($905,000 per acre). Hamilton’s industrial land values continue to rise.
The largest transaction of the week was in Kitchener, where Broccolini traded $23 million for 69 acres of ICI land.
In the News Headlines section below, you’ll find:
The latest on downtown Hamilton projects
Updates on the flurry of activity around John C. Munro Hamilton International Airport
The February stats from the REALTORS® Association of Hamilton-Burlington (RAHB)