One of Toronto’s Oldest Buildings Set to Change Hands

Local Group To Buy Historic Flatiron Building for $15.4 Million

One of Toronto’s oldest buildings is about to change hands with a local buyer group set to pay $15.4 million to purchase the Gooderham Flatiron Building at 49 Wellington St. E, according to a source with knowledge of the pending sale.

George Gooderham built the historic red brick building, which dates back to 1892, and it originally housed the head offices of Gooderham & Worts Distillery until 1952. The property was sold by the Gooderham estate in 1957.

CoStar data lists the current owner as Toronto-based real estate development firm Commercial Realty Group. The Flatiron Building is one of eight properties profiled on the company’s website.

“Thanks to Commercial Realty Group’s passion for preserving the past and empowering the future, the firm has rescued numerous properties from being lost to time and neglect, and potentially experiencing a radical modernization, or being demolished with disregard for the historical integrity of our province,” the real estate company says on its site.

The president and founder of Commercial Realty Group is Clayton Smith, who started his career with Oxford Properties Group.

Commercial Property Group could not be reached to comment.

Tenants in the building include Sheppard Services, Lexsage, Commercial Realty Group and Snowden LLP, according to CoStar data.

The building was declared a historic site under the Ontario Heritage Act in 1975 and it was restored in 1998.

According to a source, the buyer is said to be Lee Chow Group, a Toronto-based company that describes itself as a boutique real estate investment firm. Officials with the company could not be reached to comment.

Source CoStar. Click here to read a full story.

Hundreds of the Source Locations To Close After Deal With Best Buy Canada

The Source’s Parent Company Bell Canada, Plans To Rebrand 165 Small-Format Stores As Best Buy Express

About half of the Source’s hundreds of stores that sell electronics in Canada are expected to close after the retailer’s parent company announced a deal with Best Buy Canada.

Bell Canada Enterprises and Best Buy Canada are teaming up with plans to operate 165 the Source stores that will be rebranded as Best Buy Express and sell consumer electronics and telecommunications products and services from Bell, Virgin Plus and Lucky Mobile.

The Source has 335 stores in Canada, according to its website, so around 170 locations are expected to close as a result of the partnership. A representative for Bell Canada told CoStar News the remaining the Source stores will close in 2024, with the transition taking several months. The transition plan is still being finalized, and additional details on which stores will close are not known.

The 165 small-format stores that will be rebranded as Best Buy Express will expand Best Buy’s presence in malls and in smaller and mid-sized communities across Canada when they open in the second half of 2024, according to a statement.

The Source was long known as Radio Shack, which sold electronics items in over 800 outlets in Canada in the 1990s. Radio Shack rebranded as the Source in 2005 and Montreal-based Bell Canada, one of Canada’s largest communications providers, purchased the chain in 2009.

The Source’s stores are located in Toronto and Montreal and other markets in eastern Canada. The stores, which are branded La Source in Quebec, can be found in major shopping centres such as Fairview Centre, Carrefour Laval, Galeries D’Anjou, Eglington Square, Toronto Eaton Centre, Union Station, Hudson Bay Centre and Vaughan Mills, among others.

Staffers at several the Source stores told CoStar News by telephone they are unaware whether their stores will continue to operate after the changes. “Nobody knows what’s going on,” said one employee. “We will only know in March,” said an employee from another store.

The Source maintains its headquarters in Barrie, Ontario, where an employee from the human resources department declined to comment on which stores would remain open or whether the head office would continue following the change.

Best Buy Canada, a subsidiary of U.S. retailer Best Buy, currently has more than 160 stores across Canada operating as either Best Buy or Best Buy Mobile, according to the statement.

Radio Shack, meanwhile, was founded in the U.S. in 1921 and went through a series of ownership changes and bankruptcy procedures in recent years. Unicomer Group acquired Radio Shack‘s intellectual property assets and domains in about 70 countries in 2023, according to the company website. Unicomer Group operates Radio Shack stores in Latin America, South America and the Caribbean, the website says.

Source CoStar. Click here to read a full story.

Major Toronto Office REIT Cuts Distribution in Half

Dream Office Looks to Maintain Capital as Downtown Vacancy Rate Hits Record High

Dream Office REIT, a major player in Canada’s largest city with 28 investment properties, is cutting its dividend in half in a reduction that it said will save $19 million annually.

Dream Office CEO Michael Cooper described a challenging environment for office leasing even as the Toronto-based REIT is seeing slight increases in occupancy.

“Over the last four years, it has been very tough in the office sector,” Cooper said on a call with analysts. “Everything shut down because of COVID, and there was an immediate halt to the use of office space. It’s been two years since public health was an issue, but it’s been a slow recovery.”

Cooper said the board decided that retaining cash was valuable during the very uncertain environment for office landlords.

“This just gives us more shock absorbers,” said Cooper. “It’s not that things have changed, but maintaining capital creates more flexibility.”

For the period that ended Dec. 31, the REIT’s downtown Toronto in-place occupancy rate fell to 82.7% from 85.4% a year ago, while in-place and committed occupancy improved from 87.7% to 89% for the same period. Dream Office owned 3.155 million square feet in the downtown Toronto office market as of Dec. 31. The market’s vacancy hit a record high in the fourth quarter, according to a report from CBRE.

Distribution Cuts Expected

Mark Rothschild, an analyst with Canaccord Genuity, said the risk of Dream Office cutting its distribution was already factored into the unit price.

“With no signs of improvement in fundamentals and the likelihood that it will take longer than expected to improve net operating income, reducing risk and preserving liquidity is of greater importance. This is magnified by the more difficult lending market towards office properties, compounded by the impact of higher interest rates,” Rothschild said in a note.

Dream Office is reportedly looking to sell some of its assets and has hired CBRE and Toronto Dominion Bank to find a buyer for 438 University Ave. Dream has yet to comment. The company sold a building at 720 Bay St. in early 2023.

Dream Office is the latest office REIT to slash its dividend. Toronto-based Slate Office, a landlord in Canada and the U.S., cut its distribution last year and amended its declaration of trust to remove the leverage restrictions.

“We believe we are starting to see green shoots in the office sector and accelerating demand from emerging and established companies looking for high-quality office space,” said Brady Welch, interim chief executive of Slate Office, during a conference call with analysts Thursday.

The REIT said for the period ending Dec. 31, occupancy was 78.6%, down from 79.1% a quarter earlier.

Slate Office announced a 15-year, 107,000-square-foot lease agreement with a top Canadian financial technology company at the West Metro Corporate Centre in the Toronto suburb of Etobicoke. The REIT did not name the tenant.

“In a challenging office market, we have been able to increase occupancy at the property by nearly 20% while extending the average lease term by two years and significantly improving net operating income,” said Welch.

CBRE noted this month that vacancy in downtown Toronto’s office market hit another new high of 16.7% in the fourth quarter of 2023.

“When analyzing climbing vacancy, it is unfair to look at the office sector as one homogenous sector,” said CBRE in its report.

“There is a tranche of inventory that because it is old, it is dated, it is commodity office and more importantly, because it has no pathway to decarbonization, that portion of the market may never recover, at least not in a meaningful way,” said CBRE.

Source CoStar. Click here to read a full story.

Quebec Developer Enters Ontario With Industrial Project in Hamilton

OleaDev’s LinkSix Project Comes After Firm Completed Biggest On-Spec Warehouse in Quebec

Building industrial property in the province of Ontario while doing the same in Quebec might lead a developer to compare the degree of difficulty in each region.

So which of Ontario and Quebec offers developers a faster runway to getting an industrial structure built? Montreal developer Terry Tsatas has gained recent perspective on the question now that his OleaDev Real Estate Group has moved forward with its first project in Ontario: a 415,000-square-foot building with 40-foot ceilings straddling the border of Hamilton and Burlington.

OleaDev completed Quebec’s largest on-spec warehouse earlier this year. (Olivier Gariépy/CoStar)

Earlier this year OleaDev launched Quebec’s largest-ever on-spec industrial structure with a 420,000-square-foot warehouse it created along with construction partner Frare & Gallant in Beauharnois, Quebec. That project is now occupied by Keurig Dr Pepper Canada, according to OleaDev’s LinkedIn page.

Tsatas told CoStar News that Canada’s two biggest provinces approach the planning and permitting process with different philosophies.

The Ontario authorities might be slower and more demanding, but there’s a reason for that, according to Tsatas.

“Ontario is more business-oriented and proactive. In Quebec, it’s simpler. You go to your city but then there’s a lot more guesswork,” Tsatas said. “In Ontario, there are multiple authorities that you have to go see but the municipalities and province know what’s going to happen there three years down the road with the services and zoning.”

OleaDev is building its LinkSix project at 566 Highway 6 with financing from BMO Private Equity and expects to complete it in the first quarter of 2025.

Another Project Pending
It will be joined by another major project in Ontario to be announced within the coming weeks, Tsatas said.

LinkSix is being built on speculation without any pre-arranged deal with a tenant, a practice that has only recently become popular in Quebec.

“In Toronto there has always been the spec marketplace. Montreal has always been a much more conservative market,” Tsatas said.

Canada’s industrial property market has attracted much attention over the last few years, as high demand led to better profits and lower vacancy rates, notably in Quebec.

Tsatas does not believe that the Canadian industrial bonanza will continue indefinitely.

“The reality is the market has softened significantly over the last few months and 2024 won’t be an easy year for industrial development,” said Tsatas, who notes that OleaDev has factored this into its plans for LinkSix. “Our philosophy is that this asset won’t be ready in 2024 but rather in 2025 when rates will have stabilized.”

Source CoStar. Click here to read a full story.

UK Sandwich Chain Looks to Take a Slice of Canadian Market

Pret A Manger Opens First Permanent Location in Toronto

United Kingdom sandwich and organic coffee chain Pret A Manger is opening its first location in Canada in downtown Toronto.

The chain, which began in London in 1986 and now has 600 shops worldwide in 16 international markets, opened its doors on Jan. 23 but is scheduling a formal grand opening at 90 Adelaide St. W. for Feb. 5. The nine-storey building at the corner of Adelaide St. West and Sheppard St. is owned by Colonia Treuhand, a family run real estate investment, asset and property management company based in Toronto.

“This expansion into Canada is a natural next step for Pret globally. We are committed to bringing the Pret brand to more people, wherever they are,” said Jorrie Bruffett, president of Pret A Manger for North America, in a statement.

The company had experimented with pop-up stores in Vancouver and Toronto in 2022 and said the success led them to open a permanent location and pursue Canadian expansion plans.

Pret a Manger has locations in the United Kingdom, Ireland, United States, Hong Kong, France, Dubai, Kuwait, India, Luxembourg, Switzerland, Belgium, Singapore, Germany, Italy and Spain.

Source CoStar. Click here to read a full story.

Canada’s Largest Owner Of Retirement Homes Has A New Look

Megadeal Saw Retirement Home Giants Divide Canadian Portfolio

Canada’s largest owner of retirement homes has a new look after Chartwell Retirement Residences’ Chief Executive Officer Vlad Volodarski engineered a deal with Toledo, Ohio-based Welltower that involves 40 retirement homes across Canada.

Chartwell’s CEO sat down with U.S.-based retirement home giant Welltower last year to take on the daunting task of dividing the portfolio that comprises 8,476 units the companies have co-owned together since 2012.

“Some time last year [Welltower] asked us to split the partnership, to determine the terms of the separation and negotiate all other terms,” Volodarski told CoStar News in an interview.

The deal, announced in early November, resulted from a detailed negotiation process that saw both sides pick their properties and then haggle over the details.

“They had a list of their desired properties and we had ours. There was some overlap, so it was a negotiation,” said Volodarski, who says that the main aim of his publicly traded company was to keep control of retirement homes located closer to its existing operations.

The final deal, which is expected to close in the second quarter, saw Welltower emerge with 23 properties and Chartwell with 16, with one retirement home to remain shared. Welltower also compensated Chartwell with a cash payment of CA$97.2 million. “You never achieve 100% of your goals in these types of negotiations but we are happy with the outcome,” said Volodarski.

Chartwell, which is Canada’s largest retirement home chain and oversees 25,000 residents in four provinces, will remain focused on its ongoing occupancy recovery initiative and is aiming to reduce labour costs, notably through increased use of technology, Volodarski said. But the company is also not ruling out opening new homes. “We are well positioned, whether it’s through new development or acquisitions, to add to our portfolio, alone or with partners,” Volodarski said.

Focused on Underserved Markets

Chartwell would like to increase its portfolio in Western Canada, specifically British Columbia, where it considers the retirement home market to be underserved. Volodarski, like many other commercial real estate executives, feels that current economic conditions remain unfavourable to new builds due to high construction costs and other associated financial challenges. “The numbers don’t quite pan out but I expect in the next year or two we will have more opportunities to do more developments ourselves or with partners. When the time is opportune we will definitely move forward.”

Since 2014, Chartwell has maintained a development partnership with EMD-Batimo, a 25-year-old Quebec-based company led by Marc Dubuc and Francis Charron. EMD Batimo finds land to develop and Chartwell provides financing or Batimo develops a property on its own and Chartwell purchases the operation once it has attained a 90% stabilized occupancy level.

Welltower, which has been led since 2020 by CEO Shankh Mitratake, takes over 13 of the 20 co-owned retirement homes in Quebec and 10 of the 19 homes in Ontario, British Columbia and Alberta. Welltower, like Chartwell, has also partnered with a company based in Quebec, which is a lucrative market for retirement homes, as Montreal-based Cogir will manage some of Welltower’s 23 properties under its Jazz brand. The deal cost Welltower real estate investment trust a total of CA$113.3 million. The 23 properties have a “lower average age, higher occupancy and margins, and feature core locations across strategic Canadian markets,” according to Welltower’s latest earnings update.

Retirement homes totaling 3,511 units are now owned solely by Chartwell:

  1. Whispering Pines, 140 Letitia St. in Barrie, Ontario, 108 units;
  2. Tranquility Place, 436 Powerline Road in Brantford, Ontario, 218 units;
  3. McConnell Retirement Residence, 801 Fourth St. E in Cornwall, Ontario, 210 units;
  4. Scarlett Heights Retirement Residence, 4005 Eglinton Ave. W in Etobicoke, Ontario, 208 units;
  5. Royal on Gordon Retirement Residence, 1691 Gordon St. in Guelph, Ontario, 112 units;
  6. Avondale Retirement, 1238 Queen St. E in Toronto, 79 units;
  7. Lansing Retirement, 10 Senlac Road in Toronto, 90 units;
  8. Imperial Place, 13853 102 Av in Surrey, British Columbia, 104 units;
  9. Fountains of Mission, 222 25th Ave. SW in Calgary, Alberta, 96 units;
  10. Domaine des Trembles, 250 Saint-Raymond Blvd. in Gatineau, Quebec, 238 units;
  11. Les Écores, 1800 Cartier Blvd. E in Laval, Quebec, 197 units;
  12. Belvédères de Lachine, 3000 Notre-Dame St. in Montreal, 264 units;
  13. Manoir et Cours, 545 Francis-Byrne St. in Quebec City, 616 units;
  14. Manoir Archer, 217 de l’Église in Quebec City, 246 units;
  15. Manoir Saint-Jérôme, 335 Des Pins St. in Saint-Jérôme, Quebec, 513 units;
  16. Notre-Dame, 222 Notre-Dame St. W in Victoriaville, Quebec, 212 units.

Retirement homes totaling 4,633 units are now owned solely by Welltower:

  1. Christopher Terrace, 3131 New St. in Burlington, Ontario, 71 units;
  2. Kingsville Retirement, 240 Main St. E in Kingsville, Ontario, 98 units;
  3. Leamington Retirement, 1 Henry Ave. in Leamington, Ontario, 82 units;
  4. Royalcliffe Retirement, 609 Wharncliffe Road S in London, Ontario, 146 units;
  5. Alexander Muir, 197 Prospect St. in Newmarket, Ontario, 84 units;
  6. Belcourt Résidence, 1344 Belcourt Blvd., Orléans, Ontario, 106 units;
  7. Héritage Résidence, 624 Wilson St. in Ottawa, 170 units;
  8. Guildwood Retirement, 65 Livingstone Road in Scarborough, Ontario, 172 units;
  9. Royal Marquis, 590 Grand Marais Road E in Windsor, Ontario, 83 units;
  10. Renaissance Retirement, 6676 203 in St . Langley, British Columbia, 128 units;
  11. Domaine Harmonie, 1024 Charcot St. in Boucherville, Quebec, 176 units;
  12. Villa Rive-Sud, 3460 De Chambly Road in Longueuil, Quebec, 223 units;
  13. Bois-de-Boulogne, 10005 Bois-de-Boulogne Ave. in Montreal, 219 units;
  14. Manoir Pointe-aux-Trembles, 3478 32nd Ave. in Montreal, 246 units;
  15. Le Wellesley, 230 Hymus Pointe-Claire Blvd. in Quebec, 157 units;
  16. Faubourg Giffard, 2321 De La Canardière Road in Quebec City, 380 units;
  17. Villa Jonquière, 3978l Harvey Blvd. in Saguenay, Quebec, 199 units;
  18. Villa Chicoutimi, 220 Don-Bosco St. in Saguenay, Quebec, 194 units;
  19. Villa Saguenay, 1901 Des Roitelets St. in Saguenay, Quebec, 235 units;
  20. Villa de l’Estrie, 3300 des Chênes St. in Sherbrooke, Quebec, 246 units;
  21. Le St-Gabriel, 5885 De Chambly Road in St. Hubert, Quebec, 345 units;
  22. Le Teasdale, 950 Boul Lucille-Teasdale Blvd. in Terrebonne, Quebec, 564 units;
  23. Jardins Laviolette, 2975 Laviolette Blvd. in Trois-Rivières, Quebec, 30 units.

The property to remain under co-ownership between Chartwell and Welltower:

Chartwell will no longer manage two properties totaling 314 units that were already fully owned by Welltower:

Source CoStar. Click here to read a full story.

Beeches Proposes New Life Sciences Development In Toronto

Developer pivots Wicksteed Ave., site from its original plan to build office space

A proposed mass timber-constructed office development in Toronto’s Leaside area has shifted focus; Beeches Development is now seeking to add much-needed biomedical laboratory space with its new building.

“We originally designed a project that was going to be a really exciting, modern and iconic-looking flatiron building filled with mass timber that was going to be quite wonderful,” Beeches president Charles Goldsmith told RENX. “But absolutely nothing happened after COVID, so we shut it right down.

“I started looking for what was in demand and what we could do with the site. And having worked with Toronto Economic Development, it became apparent that the one thing that the city desperately needed was wet labs.”

The proposed building, on a property at 154 Wicksteed Ave. which is currently occupied by The Floor Shop, was radically redesigned because lab requirements are much different than those for conventional office space.

Goldsmith said a nearby future location for The Floor Shop has been secured and it can move quickly once the time arrives for demolition. It’s still providing rental income for site owner Peter Schultz in the meantime.

Goldsmith’s long Toronto development career includes involvement with infill housing, apartment buildings, commercial properties and the 1984 acquisition and redevelopment of downtown’s Hotel Victoria, which he sold to Silver Hotel Group in 1997.

Goldsmith sees 154 Wicksteed as his latest urban revitalization endeavour.

Leaside Innovation Campus

What will be known as the Leaside Innovation Campus will offer plenty of windows to provide abundant natural light, 2.5-inch thick concrete floors with a live load of 100 pounds per square foot and 14-foot ceiling heights to allow for ease of design and layout and ensure maximum utility.

Specifications can be customized to meet tenant needs.

Along with two passenger elevators, a 3,500-pound capacity freight elevator will service each floor, including a shipping and receiving area and below-grade storage and/or data centre space.

The eight-storey, concrete-framed, brick building should be in the neighbourhood of 90,000 square feet.

It’s also proposed to have underground parking for more than 30 cars, storage for 30 bicycles, showers and change rooms on the ground floor, as well as rooftop amenities.

Good location for life sciences facility

Goldsmith estimates Leaside Innovation Campus could employ up to 300 and its location is advantageous as it’s minutes from one of Canada’s largest research centres, the Sunnybrook Research Institute, and its teaching hospital with the University of Toronto.

North York General Hospital, Michael Garron Hospital, AlphaLabs and pharmaceutical companies Johnson & Johnson Innovative Medicine, Alveda Pharma, POINT Biopharma, Wellesley Therapeutics Inc., Crassula and Vien Pharma are also in the area.

The neighbourhood has also seen a recent multifamily residential development boom to take advantage of the Eglinton Crosstown light rail transit line that’s under construction three blocks north of the Wicksteed Avenue site.

It’s also in close proximity to the Don Valley Parkway and Highways 404 and 401.

Approvals are in place

Goldsmith would like to begin construction on the StudioCANOO-designed building before the end of the year.

Goldsmith estimates it will take about two years to complete. He’s willing to build on spec if necessary because he’s confident tenants will come on board as construction progresses and occupancy timelines shorten.

The plan is for the development to be financed with 50 per cent equity and 50 per cent debt, though Goldsmith said he and Schultz will consider adding investment partners.

CBRE is seeking tenants to pre-lease space in the building as well as potential co-investors in the project.

Banks are generally reluctant to finance developments that aren’t pre-leased in today’s economic environment and, since the life sciences asset class is relatively new in Canada, there isn’t a lot of available historical data that may be able to convince them otherwise.

CBRE associate vice-president Daniel Lacey, who authored a report on Toronto’s need for more lab space last fall and is representing Leaside Innovation Campus, told RENX 90 per cent of the potential tenants he’s spoken with don’t have flexible timelines and want to be in new space within 18 months.

Existing and proposed Toronto lab space

Downtown Toronto’s MaRS Discovery District is the primary purpose-built, multi-tenant lab facility in the city. Other smaller buildings are occupied by owner-users or single tenants, according to Lacey.

KingSett Capital has proposed a four-storey, 187,000-square-foot life sciences research space addition to the top of its existing 20-storey, 1.22-million-square-foot building at 700 University Ave., a block west of MaRS.

There are also plans in the two-square-kilometre downtown Discovery District for the second phase of the University of Toronto’s Schwartz-Reisman Innovation Campus, which would add approximately 400,000 square feet of wet lab space and supportive programming to foster life science development and bioscience, regenerative medicine, and related research.

The closest-term future lab and life sciences option at the moment in Toronto is Catalyst.

The seven-storey, 155,000-square-foot life sciences and research building at 77 Wade Ave. in the Junction Triangle neighbourhood is being developed by Seeker Labs and its capital partner, Alberta Investment Management Corporation (AIMCo).

It had a groundbreaking ceremony in October.

Need for more lab and life sciences space

Perhaps the greatest need is for accelerator or graduation space where small or startup firms in spaces of less than 5,000 square feet are seeking to upsize.

Lacey said early-stage companies generally don’t have capital allocations to improve existing spaces and are also reluctant to sign long-term leases in case they outgrow spaces.

“Companies in our marketplace get big bags of money from private equity firms and then they move to the U.S. because that’s the only place where they get the lab space so they can hire people to advance their research quickly,” said Lacey.

Some companies that have remained in Canada have seen their growth stunted because they have nowhere to expand, Lacey added.

Some office building owners had been contemplating conversions to lab space, but Lacey said none of them have moved forward in a meaningful way to this point as conversions can be very expensive and may still not provide an ideal solution.

Source Renx.ca. Click here to read a full story

Rosefellow To Build Spec Industrial In Toronto, Plans U.S. Expansion

Montreal developer says it also has 4.3M sq. ft. of development under way, or set to begin

Montreal-based developer Rosefellow says it is set to build its first industrial development on spec in the Greater Toronto Area.

Rosefellow co-CEO Mike Jager says the developer will finalize its acquisition this quarter of a site in Mississauga near Pearson International Airport that will be redeveloped into a distribution centre. Construction at the yet-to-be-named site is slated to begin by Q3 of this year, says co-CEO Sam Tsoumas.

The developer is also on the verge of acquiring another industrial site close to Pearson airport, but not in Mississauga.

Jager says the two sites “are the first of many to come” in the GTA. Rosefellow will continue to develop in Quebec but “we just think because the market is so large in Ontario, much larger than Quebec, we’re going to see significant growth in the Ontario market.”

Jager says he and Tsoumas are also exploring the U.S. market and intend to begin Rosefellow’s first development south of the border in 2025 or 2026. The two have traveled to markets such as Florida, New Jersey and Chicago.

“Huge opportunities” for industrial growth

“We just see huge opportunities. The potential for us to grow in the U.S. is there and we want to take advantage of it.”

The co-CEOs have been meeting with brokerage firms and property owners to learn more about the various markets and sub-markets in the U.S.

“We need to understand the data well. Once we understand those markets, like we do Quebec and Ontario, we’ll make a move,” Jager says.

He says Rosefellow has a mix of private and public investors “interested to grow with us in Ontario and others on the sidelines ready to deploy capital in the U.S.”

Back in Quebec, Rosefellow will be notarizing this quarter on a 3.5-million-square-foot site on the South Shore of Montreal near Brossard that will be slated for a distribution centre.

It comes on the heels of Rosefellow’s acquisition in December of 2.4 million square feet of the Le Versant golf course in Terrebonne, northeast of Montreal. The land is zoned industrial.

Golf course land to be redeveloped

Rosefellow plans to build on spec two net-zero distribution centre buildings of 350,000 and 400,000 square feet with 40 feet clearances at a cost of $160 million, including the land acquisition.

Construction of the 400,000-square-foot building is scheduled to begin in the fall for completion in 2025. The second building is to be completed in 2026.

Jager says some potential multinational tenants have reached out “because of the location (and) how limited the availability is for pure distribution sites” in Greater Montreal.

The initial plan had been to build the largest spec building in Quebec, a cross-docking facility of just under a million square feet.

The site, bordering Highway 640 and close to Metro, Sobeys and Rona distribution centres, is the last industrial-zoned piece of land in Terrebonne that will be granted distribution centre status by the city, Tsoumas says.

Future industrial development in Terrebonne will be limited to manufacturing and R&D.

Until Rosefellow acquired nine holes of Le Versant, the golf course was the largest in Canada.

4.3M sq. ft. of construction underway, set to begin

Tsoumas says Rosefellow has 4.3 million square feet of industrial construction underway or set to begin in the next three months, not including its latest acquisitions.

Sites include Beauharnois, Candiac, Coteau-du-Lac south of Montreal, Kirkland on the West Island of Montreal, Laval and in the west Ottawa community of Kanata.

The developer has also completed construction of its second multifamily apartment building, the 200-unit Le Novella in the Montreal borough of Anjou.

It’s now 50 per cent leased “but we know we’re going to be fully leased by June,” Jager says, since many Quebec leases start on July 1.

Rosefellow previously built the 412,000-square-foot Le 111 apartment building in the borough of Saint Laurent, which is fully leased.

However, “we have not actively pursued any new (residential) sites for development,” Jager says. “The rental rates are not where we would expect them to be or hope them to be, so we’re going to wait a little bit.”

Rentals are still strong on the industrial front, Tsoumas says, although rent growth won’t match the growth seen in recent years.

The number of calls from potential tenants has declined recently, he notes, but all are from serious renters.

“While everybody is pushing the brakes, we feel that the (industrial) market within the next 12 to 18 months is going to start going back to where it was just pre-COVID in 2019, which was on an upswing, just not at the rate that it was in the last two years,” Tsoumas says.

“We feel that if we get our properties ready in 24 months or so, we will be the only developers with actual class-A, brand-new product.”

Source Renx.ca. Click here to read a full story

Morguard Closes On Sale Of 14 E. Canadian Hotels For $410m

UPDATED WITH SALE CLOSING: Morguard Corp. has sold a portfolio of 14 hotels in eastern Canada for $410 million.

Morguard stated the move aligns with its “commitment to optimize its real estate portfolio, focusing on core real estate investments, including office, industrial, retail, and multi-suite residential properties.”

Morguard did not originally divulge the buyer, but InnVest Hotels of Toronto has acquired 10 of the properties.

The hotels Morguard sold are located in Halifax, Ottawa, four communities in the Greater Toronto Area and Sudbury and comprise a total of 2,248 rooms (see complete list below).

“It is an opportune moment to divest these properties given the current market demand for a hotel portfolio of this size and quality, as well as their enhanced market value,” K. Rai Sahi, Morguard’s chairman and chief executive officer, said in the release.  “Morguard has strategically divested our hotel portfolio to align with our objectives of strengthening the company’s balance sheet while owning a high-quality portfolio of income producing real estate.”

In a separate release, InnVest said it acquired 10 properties in the Greater Toronto Area, Sudbury and Halifax. It acquired a total of 1,737 guest rooms with the portfolio, and 40,000 square feet of convention and meeting spaces.

InnVest plans to initiate a “multi-faceted renovation over the coming years to elevate the guest experience” the release states.

“We are delighted to announce our largest acquisition since 2007 which demonstrates confidence in our vertically integrated hospitality organization and the Canadian hotel market.  We welcome the 766 new team members that have joined our organization.” Lydia Chen, president and CEO of InnVest, said in its release.

Guelph’s Hanlon Creek Business Park Phase 2 Сompleted, Leased

Cooper Construction and its partners have completed the construction, development and lease-up of Phase 2 of the Hanlon Creek Business Park (HCBP) in the south end of Guelph, Ont.

This second phase of Hanlon Creek encompasses 1.9 million square feet of class-A industrial and corporate office buildings on a 140-acre site adjacent to the Hanlon Expressway. Its uses include manufacturing, warehousing, logistics, vertical farming and corporate offices.

HCBP’s second phase features state-of-the-art and environmentally sustainable facilities, green spaces, electric vehicle charging stations, solar energy initiatives, aquifer regeneration infrastructure, a large natural water feature and a recreational trail system in support of achieving LEED Silver and WELL certifications, as well as net-zero carbon-ready status.

The HCBP site is a five-minute drive from Highway 401 and close to Toronto, Hamilton and Kitchener-Waterloo. Members of the local labour market can access it by public transit.

Hanlon Creek Business Park history

The City of Guelph did all of the infrastructure work, including the creation of a road system and development blocks, and then sold the serviced sites for Phase 1 at Hanlon Creek.

The city master-planned the roads for Phase 2, but didn’t do the work. It didn’t own all of the land for this phase either, as there was a family-owned farm that needed to be developed in concert with the municipally owned lands.

The same concept holds true for the forthcoming Hanlon Creek Phase 3, which Cooper is interested in being a part of, president Don Gordon told RENX.

Cooper and financial partner Montez Corporation purchased land for Phase 2 from the Phelan family in 2007 and the municipality in 2010. Approvals were granted, the site was serviced and development lots were created before the construction of buildings began in 2016.

Cooper and Montez developed four buildings before Montez sold its interest to Summit Industrial Income REIT. The new partners were developing their fourth building on the site when Summit was acquired last February by GIC and Dream Industrial REIT for $5.9 billion.

Smaller Phase 2 sites were sold

“Along the way, we sold off a couple of small sites that didn’t really lend themselves to the types of buildings that Summit and/or Montez were building,” Gordon explained. “So we parsed those small, irregular sites off and we also sold about 19 acres to Co-operators for their new corporate head office.”

The Co-operators office building is under construction and will be completed this year.

Phase 2 of HCBP is now fully leased to tenants including Lynden Logistics, GoodLeaf Farms, OxiCP, PiVAL, Omni Packaging, GoPlus, Fraser Direct, Lane Sales, Brewers Supply Group, Jet Tools, Denso Manufacturing Canada and the College of Veterinarians of Ontario.

Cooper is providing property management services to some of buildings while others are managed by new owners.

Forthcoming Cooper developments

Oakville-based Cooper is a 118-year-old, family-owned company that provides southern Ontario markets with design/build construction, construction management and industrial, office, institutional and self-storage real estate development services.

Cooper is also nearing completion of Grand River Business Park West, a new Kitchener industrial development targeting a LEED Silver certification with a net zero carbon-ready design. The speculatively built 363,108-square-foot building on 20 acres at 355 Shirley Dr. features a 40-foot clear interior ceiling height, 50×56-foot bays and a 60-foot staging bay.

“We’re waiting for a swift lease-up,” Cooper vice-president of development and real estate Domenic Natale told RENX.

The Grand River Business Park East in Kitchener is also under development. The 26-acre site will feature two buildings totalling up to 440,000 square feet with 40- and 28-foot clear heights, 50×56-foot bays and a 60-foot staging bay. Both are to be built on spec.

Cooper is targeting a LEED Silver certification and to be net-zero carbon-ready by completion in late 2025 or early 2026.

Cooper is developing a 40-acre site at 7475 McLean Rd. in Puslinch, a Wellington County township surrounding the south end of Guelph.

The spec-built project will feature two 419,250-square-foot buildings with 40-foot clear heights, 41×56-foot bays, a 60-foot staging bay and parking for 73 truck trailers.

A LEED Silver certification and net zero carbon-ready status are being targeted, along with a late 2024 completion date.

Source Renx.ca. Click here to read a full story