Company leases Hamilton site for facility to recycle 40,000 tonnes annually; Calgary plant nears completion
Asphalt shingle recycler Northstar Clean Technologies Inc. is moving ahead with a facility in Hamilton to reprocess tens of thousands of tonnes of roofing material each year.
Then, it plans to replicate the facility in cities across North America.
The Calgary-based company has signed a letter of intent with a subsidiary of the Hamilton-Oshawa Port Authority to lease a four-acre industrial property for a 15-year term.
Northstar plans to establish a 25,000- to 30,000-square-foot facility that will process 40,000 tonnes of shingles per year from the Greater Toronto Area (GTA) under what it refers to as typical operations, though that number could go as high as 80,000 tonnes.
āThis is a real opportunity to stop shingles from going to landfill,ā Aidan Mills, president and CEO of Northstar, said in an interview with Sustainable Biz Canada.
The shingles will be broken down into sand, fibreglass or paper, and asphalt for reuse, which reduces the need for new resources and could make a significant dent in the amount of waste destined for landfills. Over one million tonnes of shingles are disposed of in Canada each year, according to one estimate, and Mills said one quarter originates from the GTA.
Bringing more industry back to Hamilton
The companyās technology recovers 99 per cent of the materials from a shingle. The sand can be returned to shingle manufacturing; asphalt can also be reused for shingles, flat roofs and roads; the fibreglass could be used to make concrete.
Mills said recycling a shingle slashes carbon emissions by 60 per cent compared to new production. AĀ life-cycle analysisĀ conducted at Northstarās commercial facility in Calgary (which is in the final stages of construction) found the process cuts greenhouse gas emissions by over 117 kilograms of carbon dioxide equivalent per tonne of asphalt shingle feed, and water consumption by 600 litres.
Hamilton was chosen by the company because of its advantageous location in the GTA, the infrastructure connections, and abundance of shingle and asphalt customers, Mills said. āGreat for a light industrial manufacturer like ourselves.ā
Northstar is in talks to receive feedstock from environmental services companies, landfills and manufacturers under long-term supply agreements. Mills also foresees roofing companies dropping off used materials at the facility.
If running at full capacity ā around the clock with sufficient supply ā Northstar anticipates the facility could process 80,000 tonnes of asphalt shingles per year.
The companyās next step is finalizing permitting. Once that is finished, Mills expects Northstar to sign an agreement for shingle supply and binding agreements for the offtake of the output by the first half of 2025.
Construction is expected to start in mid-2026, with operations starting just a few months later.
Mills estimated the Hamilton project will cost approximately $15 million to build, with an additional $5 million in fees from the land lease, hiring, consulting and permitting.
Around two-thirds of the revenue generated by the facility will be from the sale of products, and the remainder from a tipping fee, Mills explained. Carbon credit sales will provide an additional revenue stream.
Northstarās other facilities and plans
Northstarās other facilities include a pilot site in Delta, B.C. for research and development, and its first commercial facility in Calgary that is to be ready for operations in mid-2025.
The Calgary facility is projected to divert 40,000 tonnes of shingles per year as a baseline, similar to the Hamilton project. NorthstarĀ signed a five-year supply agreement with asphalt shingle maker IKO Industries Ltd.Ā for the Calgary site.
Citing data that found over 16 million tonnes of shingles are disposed of in Canada and the U.S., Mills called it āa mountainous problemā that Northstar could help tackle via mass expansion.
āThis is going to be like the Tim Hortons of asphalt shingle recycling. You can literally put one in every city that is over one million people,ā Mills said of Northstarās recycling technology.
By 2030, he expects Northstar to have 23 recycling facilities, including the site in Hamilton, a retrofitted Delta facility, and its first U.S. project on the East Coast.
To push into the U.S., Northstar has a deal with its partner and investorĀ Tamko Building ProductsĀ to collaborate on four projects, Mills said. The recycled materials will be taken by Tamko to remake shingles.
Mills said to expect announcements about government and private funding for its projects in Canada and U.S. in the coming months.
Source SustainableBiz. Click here for the full story.
A long-dormant plan to introduce an enormous four-tower development to the heart of downtown Toronto is back after a few years of radio silence.
Developer Oxford Properties Group made a huge splash with its Union Park proposal back in 2019, revealing a bold new vision for the city skyline that featured designs boasting swooping curves from internationally-acclaimed firm Pelli Clarke Pelli Architects.
The plan would see the existing office complex at 325 Front Street West levelled and replaced with an enormous community that would feature one of Canada’s tallest buildings and act as an iconic new backdrop to the Rogers Centre.
The existing building at 325 Front Street West would be demolished for the new four-tower complex. Photo by Jack Landau.
Union Park was eventually approved in 2022, but over five years since the plan was first proposed, Toronto’s office and condo markets are in relative shambles, and there has beenĀ growing doubt about the viability of major commercial and residential developments amid a rocky 2024 in the real estate business.
However, Oxford Properties remains bullish aboutĀ this major redevelopment, and recently advanced plans for Union Park, filing an updated zoning bylaw amendment application in December that spells out significant changes for the scheme.
While these plans have not yet been made public, Oxford has providedĀ a new glimpse of what the city skyline could look like years in the future, along with a taste of what has changed since the plan was first tabled years earlier.
Rendering of the 2024 version of Union Park. Oxford Properties.
Now envisioned as a three million-square-foot master-plan, Oxford promises that the complex “will deliver office space, community-serving retail, rental residential and public realm improvements to our growing global city.”
On aĀ project website, the developer touts Union Park as one of the “largest mixed-use developments in Toronto’s history,” accompanied by new renderings that show significant alterations to the previous blueprints..
Only one of the towers has retained its curves, with the tallest of the pack still envisioned as an office building that would stand as one of the city’s highest, and house 1.5 million square feet of new commercial space.
Rendering of the 2024 version of Union Park. Oxford Properties.
The remaining three buildings have been updated with rectilinear designs and height reductions in an apparent scaling back of plans.
Oxford says that the complexĀ will breathe new life onto Front Street West, with 6,000 square feet of quick-service restaurant or coffee shop space within the first phase of the redevelopment, and an additional 10,000 to 25,000 square feet of sit-down restaurant space in the second phase.
Sustainability is reportedly top of mind for the developer, which is pursuing a range of green features, including cycling infrastructure, Enwave’s deep lake water cooling system, reuse of grey waterĀ and sustainable building practices.
With all these in place, Oxford hopes to achieve or surpass LEED (Leadership in Energy and Environmental Design) Platinum standards for the office component and LEED-certified status for the residential towers.
The plan also contemplates significant enhancements to the public realm, such as community green spaces and pathways that will ease the flow of foot traffic coming to and from major events at the nearby Rogers Centre.
Other proposed features include an on-site daycare to support families in the new community and other nearby residential towers.
While it’s a big step forward for the project, one could argue that plans have been downgraded from the bold vision laid out in 2019, pictured below.
Further details about the development, including tower heights and the number of residential units planned, will emerge in the coming days or weeks once Oxford’s submission is circulated among planning staff.
Source BlogTo. Click here for the full story.
Toronto-based Diamond Corp has filed for a site-specific Official Plan Amendment (OPA) to admit the development of a 33-storey mixed-use building that would bring 429 residential units and 4,596 sq. ft of retail space to The Stockyards neighbourhood.
The application was submitted in mid-December, and is currently under review. If approved, the development would replace a vacant site that was formerly a coin car wash facility.
Toronto-basedĀ Diamond CorpĀ has filed for a site-specific Official Plan Amendment (OPA) to admit the development of a 33-storey mixed-use building that would bring 429 residential units and 4,596 sq. ft of retail space to The Stockyards neighbourhood.
The application was submitted in mid-December, and is currently under review. If approved, the development would replace a vacant site that was formerly a coin car wash facility.
Initially, Diamond Crop envisioned redeveloping the site with a 31-storey residential, office, and retail building. The developer filed its first application in August 2022, but in May 2022 City Council had adopted the Keele-St. Clair Secondary Plan (OPA 537), which converted the site from Employment Areas to Mixed Use Areas in order to “achieve the creation of a transit supportive, complete community centered around the future St. Clair-Old Weston Smart Track Station,” says the application’s cover letter.
However, by December 2023 the Minister of Municipal Affairs and Housing had not given final approval and, at that point, suspended the 120-day decision making timeline for OPA 537. As of now, final approval has still not been granted, meaning the Stockyards development remains within an Employment Area, requiring a minimum non-residential floor space.
The most recent OPA application seeks to change that, exempting it from the need to provide office space and allowing it to deliver more much-needed housing near transit. A Zoning Bylaw Application and Site Plan Application were also submitted in July 2024 and the success of those depend on the approval of the site-specific OPA submitted this December.
The relatively slim, 23,745-sq.-ft site is located at 611-623A Keele Street on the corner of St Clair Avenue West and Keele Street and just 300 metres from the planned St. Clair-Old Weston GO Station. Once complete, the development would consist of a five-storey podium with a 28-storey tower element, featuring designs from architectsāAlliance.
Inside, the building would contain 4,596 sq. ft of retail space at grade with residential space in the floors above. The 429 units would be divided into 31 studios, 239 one-bedrooms, 128 two-bedrooms, and 31 three-bedrooms. Amenity spaces would be located predominately on level two where 6,124 sq. ft of indoor amenity space conjoins with 4,348 sq. ft of outdoor amenity space. Additionally, a 1,969-sq.-ft terrace would be found atop level five.
Residents would also have access to 39 residential parking spaces, and 23 retail or visitor spaces across two levels of underground parking, alongside 388 long-term bicycle parking spots and 44 short-term spots.
611 Keele Street/architectsāAlliance
611 Keele Street/architectsāAlliance
The office sector is still adjusting to lingering fallout from the pandemic and the effects of hybrid work policies, but savvy businesses should already be looking ahead to the next major wave of change.
That was a key message during a discussion at the recent Real Estate Forum in Toronto, which focused on what tenants want and how landlords are responding.
āHybrid is here to stay as the cornerstone of any strong workplace strategy, and our research at C&W would tell you don’t mandate, because it lowers engagement,ā said Samantha Sannella, Cushman & Wakefieldās business lead for Total Workplace Americas and national managing director for Total Workplace Canada.
āPeople want to be where they want to be, and they want to be in exciting, interesting office buildings.ā
Sannella said representatives from a companyās real estate, human resources, communications and information technology teams must be involved to make any workplace strategy successful.
She advises clients they should always be looking 10 to 15 years in the future when calculating their office space needs.
āWe are in a hybrid workplace now, but we will be in a meta workplace soon,ā Sannella explained. āSo start to think about how AI and really insane technology is going to affect our workplaces.ā
Office space is a strategic asset
Veni Iozzo,Ā CIBCās executive vice-president of enterprise real estate and workplace transformation, considers office space a strategic asset and not a cost centre.
CIBCās office footprint has dropped a bit, as itās making more efficient use of space by emphasizing the hierarchy of work and not the hierarchy of the organization. Digitization and technology have also played important roles in increasing office efficiency, Iozzo noted.
āIn most of the U.S., there is almost a manic focus on getting people back in the office,āĀ HinesĀ senior managing director and co-country head for Canada Avi Tesciuba said.
A location close to public transit is more critical than ever, as overcoming commuting times and removing friction from coming to the office is crucial. Tenants also want as many amenities as possible, and Tesciuba said access to the mostly undergroundĀ PATHĀ system that features more than 30 kilometres of restaurants, shopping, services and entertainment is seen as a big plus in downtown Toronto.
Thereās a definite flight to quality and landlords have to be willing to look past making a profit on amenities theyāre providing in order to attract and retain tenants.
Things are looking up for the office sector
GWL Realty AdvisorsĀ (GWLRA) leasing VP Devan Sloan believes the Canadian office market has reached the bottom of the cycle in terms of vacancy rates and building valuations. He expects it to outperform other asset classes during the next 24 to 36 months.
āThe uncertainty is coming out of the marketplace and we’re seeing more positive leading indicators that is likely going to lead to more deals,ā Sloan observed.
āWe’re going to see the first year in many of positive absorption in downtown Toronto and that will be great. We’re seeing markets firing across the country, particularly Alberta.ā
While GWLRA still believes in the strength of office buildings and has clients that feel the same way, it continues to examine its portfolio and consider what could potentially be converted or sold to recycle capital into something with better long-term prospects.
Improving existing buildings
Sloan estimates his company has spent $40 million over the past three years improving its Greater Toronto Area office portfolio, and that number will rise to about $65 million by the time itās done.
āIn assets where we have high conviction, we’re invested,ā Sloan said. āWe’re doing new lobbies, we’re putting in amenities, weāre doing tenant gyms ā and that’s true across the country.ā
Sloan is also spending more time on the retail component of office buildings, considered a tenant amenity.
āOur owners are not numb to the fact that they’ve had a 15-year bull run which has been fantastic in the office space,ā Sloan noted, āand now it’s time where youāve got to invest in the assets that you want to own long term.ā
āWe have elevated food and beverage, we have amenities, a wellness centre and a conference centre as much as possible,ā Tesciuba said of his firm’s properties. āWe try to have outdoor spaces.ā
The intent is to make the office experience seem more like a luxury hotel or private club, and Hines is hiring hotel concierges instead of security people for its lobbies.
Technology plays a bigger role in making life easier for tenants in new buildings, and upgrades in that area can be made in older assets.
Landlords and tenants need to share values
āAll these amenities are great, but the greatest amenities are people, and people like to be with people,ā Iozzo said. āWhen we bring teams in, they like to be together and that’s what’s happening now.ā
He noted CIBC is the anchor tenant in bothĀ IvanhoĆ© CambridgeĀ and Hines’ recently built 49-storey first tower atĀ CIBC Square, the 50-storey second tower to be completed later this year, and has space in other office buildings. But, Iozzo said the company will still need room to grow in the future.
āIām looking for landlords to have a value proposition that I can align with,ā Iozzo said. āIn the past, I would say it was more about the transaction. I saw everybody at the time of signing a lease and then didn’t see them again until renewal.
āNow it needs to be more of an integrated partnership. My scorecard for success in real estate is no longer just about square foot per employee, which is an important sub-component, but we also have vibrancy as a measure.ā
CIBC also measures occupancy cost as a percentage of revenue, and itās willing to pay more if it can demonstrate the value.
Source Renx.ca. Click here for the full story.
Toronto-based Willowdale manages six portfolio companies; land division becomes standalone operation
Willowdale Asset Management (Willowdale) and one of its portfolio companies have recently undergone some big structural changes.
Willowdale is now owner and manager of six portfolio companies, while Empire Continental Land, formerly the land division of Empire Communities, is now rebranded as standalone entity Precedent Land Company (Precedent).
Established in 1993 as the former corporate division of Empire Communities, Willowdale has grown from a single-project homebuilder into a diversified real estate organization. The company, headquartered in Toronto, runs a portfolio spanning North America with operations in Ontario, Texas, Georgia, Tennessee, North Carolina, South Carolina and most recently, Colorado.
Empire Continental Land was established in 2012 when Willowdale first entered the American market. “It was specifically to develop a single project in Houston, Texas,” Andrew Guizzetti, Willowdale’s co-founder and co-CEO, told RENX.
The name Empire Continental Land was chosen to differentiate the division from Empire Communities, he said. “We quickly expanded into other projects in Texas and other U.S. markets with our learnings from developing master plans there and in Ontario.”
Rationale for the Willowdale rebranding
Why the rebrand?
Guizzetti explained that since Empire Continental Land isn’t an exclusive service to Empire Communities (the company sells lots to other American homebuilders), it wanted to differentiate the division from the Empire brand altogether. This way, “we could look at other opportunities and perhaps joint ventures with strategic land developers and/or capital partners.”
All told, the move is designed to give Precedent a much broader reach and deeper impact.
The goal, Guizzetti said, is to provide more formalized central oversight of six distinct businesses with three elements: strategic oversight and direction, set best practices in each vertical and more setup for capital allocation.
He explained the change will create less confusion, allowing Precedent to operate somewhat independently.
“What’s very typical in the U.S. particularly when developing large master plans is you’re not exclusive to (it). You typically invite (several) large builders to help cycle through lots.”
The number of lots can reach upwards of 100,000, so alleviating any confusion will certainly be helpful.
Challenges and opportunities
When asked about the main challenge his team experienced with the change, “It’s signalling to the market that this is part of a broader organization and there’s a certain financial strength and connection behind it,” Guizzetti noted.
On the flip side, he said the opportunity has allowed management to consider taking on larger master-planned communities or joint ventures.
By having centralized oversight for each of Willowdale’s independent businesses, Guizzetti sees growth opportunities in three areas:
- more structured growth through independent management teams and management accountability;
- transparency giving a better view of each business and how it is operating;
- having separate and distinct capital structures in each business.
An organization that ‘relies heavily on talent’
Each Willowdale division and the geography in which it operates has nuanced skill requirements. Operating the companies as dedicated verticals expands each team’s local knowledge base and operational and financial expertise.
“Land development is very different by geography, so the more you have skill sets on the ground that understand how to navigate through challenges of each business, the more likely you’ll succeed and attract the right talent,” Guizzetti explained. “We’re still an organization that relies heavily on talent.”
He feels the change will open up the broader organization to more opportunities, as people cross-train in different verticals or find their strengths in different aspects of the business.
Market dynamics: What’s on the horizon
The residential market has remained strong in the U.S., and Guizzetti notes Canada has shown signs of a resurgence in the past 18 months thanks to interest rate cuts and more buyer confidence.
“It’s hard to predict interest rates in our business, (which) is the single thing that drives the cost of ownership,” Guizzetti noted. But with rates easing, he feels more buyers will likely enter the market, plus, “The decline in home prices over the last two years will help restore affordability to the market.”
While the highrise market is lagging, Guizzetti noted many developers are still considering transitioning projects from condominiums to purpose-built rentals.
“In Canada’s lowrise development, we’re still critically undersupplied, especially in the Greater Golden Horseshoe region,” he said.
As well, Guizzetti said industrial land activity has slowed from its peak but is still strong.
The big picture
In terms of how Willowdale’s recent changes align with broader company goals, Willowdale sees it as the next evolution stage across the real estate value chain.
“Each vertical is set up to grow independently while remaining in the Willowdale real estate ecosystem,” Guizzetti explained.
Ultimately, the goal is to continue to support the growth of all Willowdale portfolio companies. From a market dynamics perspective moving forward, it’s about positioning them in their own verticals to adapt to what Guizzetti described as a “volatile, uncertain, chaotic and ambiguous world.”
Source Renx.ca. Click here for the full story.
Donald Trump is returning as the U.S. president. Republicans will control both the House and Senate.
This has major implications for the commercial real estate and investment sectors, so it’s no surprise a recent Global Property Market discussion was heavily focused on the potential fallout.
Participants in the Global Property Market discussion, earlier this month at the Metro Toronto Convention Centre, expect less international investment in the U.S. as a result, which would impact Canada as its largest trading partner.
Twelve to 15 per cent of investment in U.S. real estate generally comes from outside the country, but during 2024 that has been down to five per cent, Association of Foreign Investors in Real Estate (AFIRE) CEO and panel moderator Gunnar Branson told the audience.
AFIRE is the association for international real estate investors focused on commercial property in the U.S. It has more than 180 member organizations from 25 countries who hold approximately $3 trillion in assets under management in the country.
Branson said a poll of its members before the election showed that about two-thirds believed a Republican administration would diminish the amount of cross-border investing, citing high tariffs as a potential issue.
What does a Trump presidency mean?
āWe look at a Trump presidency and we generally see a pro-growth administration,ā saidĀ Iron Point PartnersĀ managing director Salime Yacoubi, who added there are concerns about the potential inflationary effects of higher tariffs and a crackdown on immigrants in an already tight labour market.
Iron Point is a private equity firm that targets investments in real estate and other real assets throughout North America and Europe. The company has offices in Washington, D.C. and Dallas and has $1.5 billion of assets under management.
Scott Silverberg is the New York City-based Americas head of client solutions forĀ CBRE Investment Management. Heās in favour of on-shoring and re-shoring logistics and manufacturing to the U.S., even though itās inflationary, but noted there could be pressures to find the labour to build new distribution and fulfillment centres.
āWe are still anticipating an easing of interest rates, although I would say that pacing about easing with this new administration is probably going to be slower,ā said Maggie Coleman, the Los Angeles-based chief investment officer of real estate equity for North America and global co-head of portfolio management forĀ Manulife Investment Management, the asset management arm ofĀ Manulife Financial Corporation.
āI think at one point the market was underwriting seven to eight cuts, and now it’s maybe three to four.ā
Despite some of Trumpās controversial choices for cabinet positions, Coleman believes there may be a better understanding of what could happen and what to anticipate because he already served a term as president.
Political changes at the municipal level
āThe cross-currents and the continued uncertainty around the direction of the Trump administration makes it very difficult to predict what the macro impact will ultimately be and where some of these cross-currents will net out in terms of real estate markets,ā said Brendan MacDonald, the San Francisco-based partner and chief operating officer forĀ StepStone, a global private markets investment firm with $176 billion of assets under management.
āI’d like to take it down to the local level, where one of the consistent trends that you saw coming out of this latest U.S. election is at the municipal level. Cities that were historically much more progressive and much more left-leaning swung more to the centre.
āI think that having administrations that are now going to be increasingly focused on attracting business, on providing safety and security for residents, and on developing housing as opposed to regulating housing, will ultimately be positive for some of these urban markets ā and particularly some of the coastal urban markets that have been slow to recover post-pandemic.ā
Real estate investment allocations
MacDonald said investment allocations to private real estate are down substantially due to āthe dearth of realizations that investors are getting off of their portfolios.ā
Coleman said the real estate industry is still in a period of uncertainty and volatility, though it’s coming out of an extended period where liquidity has been constrained, and investors sheās working with are seeking diversification of return.
āThey’re looking for long-term income growth coupled with alpha, and then they’re looking for liquidity,ā she said.
Source Renx.ca. Click here for the full story.
Plans to use 522 University Ave. building for cancer treatment, research
The University Health Network (UHN) is extending its reach with the acquisition of 522 University Ave. in Toronto, one of the three largest office building sales in the city in 2024.
The transaction will both allow the hospital network to expand its capabilities and remove a chunk of aging office space from the downtown inventory.
The 15-storey, 210,000-square-foot tower known as the National Life Building will be repurposed to accommodate UHNās expansion of cancer care, medical research and training. Its location puts it within a short walking distance to several neighbouring hospital facilities, subway and transit stops, the University of Torontoās downtown campus, and the MaRS Discovery District.
āThe addition of 522 University Ave. increases our capacity to drive innovation and research in cancer prevention, early cancer detection, diagnostics and treatment, as well enable the introduction of new and expanded programs at UHN,” Kevin Smith, president and CEO of UHN, said in Friday’s announcement.
UHN is a research hospital affiliated with the University of Toronto, consisting of sites such as Toronto General Hospital, the Princess Margaret Cancer Centre, and the Michener Institute of Education.
The acquisition means a drastic shift from a plan filed by its previous owner, Industrial Alliance Insurance and Financial Services Inc., a subsidiary of Quebec City-based iA Financial Group. It had proposed transforming the building into a 64-storey, mixed-use development of 579 residential units and over 226,000 square feet of office space.
RENX has learned the transaction was valued at approximately $80 million, placing it at the higher end of values for this type and quality of office property.
What UHN plans to do at 522 University Ave.
With its latest property, UHN expects to support its programs at the Princess Margaret Cancer Centre and Toronto General Hospital, and serve as a training ground for health care professionals from the Michener Institute of Education and partnered academic institutions.
The Princess Margaret Cancer Centre has reached capacity, UHN said, with approximately 19,000 new patients per year. With rising demand for cancer diagnosis and treatment, the UHN sought more space for research in treatments and care.
UHN said possible services at 522 University Ave. could include:
- enhanced supportive care;
- an early cancer detection program;
- a new prostate cancer centre; and
- a hosting a digital intelligence team to āoptimize care through advanced data analytics and artificial intelligence.ā
The hospital network is acquiring the office building at a time when downtown Toronto office vacancy hit a 24-year high of 15.3 per cent after the first nine months of 2024, according to real estate advisory firm Newmark in itsĀ Q3 market overview.
After a year of few significant office sales in downtown Toronto, the sale is also significant because it will help establish pricing for other potential deals, a Colliers spokesperson told RENX in an exchange of emails about the transaction. It also continues the trend of private and other buyers (in this case institutional health care) acquiring these properties as opposed to traditional owners such as large REITs or pension funds.
There is also recent interest from owner-occupiers who can capitalize on the higher-vacancy office market to acquire properties at more reasonable price points, the spokesperson wrote. While the current market can deter investors worried about leasing and financing downtown office buildings, thatās not a concern for public sector owner-occupiers.
A significant change of plans
The change of hands for the property will mark a dramatic shake-up for what was originally planned for 522 University Ave.
Initially, the intent was to demolish the concrete structure and replace it with a 13-storey office building that would have a 49-storey residential tower on top, according toĀ Urban Toronto. But the City of Toronto designated the property as havingĀ cultural heritage value, pushing iA Financial and WZMH Architects back to the drawing board to preserve some of its features.
It was reworked into retaining 60 per cent of the existing structure and increased to 64 storeys from 62. The original plan for 611 housing units was decreased to 579 ā consisting of studio (11 per cent), one-bedroom (51 per cent), two-bedroom (27 per cent) and three-bedroom (11 per cent) units.
Source Renx.ca. Click here for the full story.
Katya Shabanova, senior vice president at Cushman & Wakefield, gets nod as 2024 Office Broker of the Year
One of the best ways to flourish in the office brokerage business is by treating customers a little bit differently, instead of it being a standard commercial association.
āKnowing that weāre in a relationship business and not the transaction business, thatās very important. Thatās the foundation of the way that I do business,ā said Katya Shabanova, senior vice president at Cushman & Wakefield Inc. in Toronto.
Shabanova was recently named the SIOR Canada (Society of Industrial and Office Realtors) 2024 Office Broker of the Year.
āItās a great honor to win that award as itās a very prestigious award in our industry. The other nominees in that category are very strong brokers so this was very meaningful to me,ā Shabanova told RENX.
The personal approach to helping clients thrive has been nurtured during her 12-year career in commercial real estate, which she entered after graduating from Western University.
George Tedder, Shabanova’s mentor
During her time at Cushman & Wakefield, colleague George Tedder has been one of her biggest boosters, according to Shabanova.
āWe started off as an associate and senior-partner relationship, but over the years, have become more equal partners,ā she said. āHeās a very well-known broker in the industry.
“He created a lot of the concepts that we work with today, things like net-effective rent that were not a concept before his time, so heās really a changemaker in the Canadian commercial real estate and office leasing field. Heās been my mentor for the whole time that weāve worked together, for 12 years.
āHe taught me pretty much everything I know about commercial real estate and he has been instrumental in my success.”
As vice-chairman, office, at Cushman & Wakefield in Toronto, and with a career spanning 45 years, Tedder has seen first-hand how Shabanova has grown into a top contributor.
āShe takes this job to a whole new level. Whatever the challenge or assignment, sheās so determined to do the right thing and exceed expectations, whether itās with colleagues or clients or landlords,ā Tedder wrote in comments emailed to RENX.
He knew early that Shabanova had what it takes to succeed in the sector.
āFrom Day 1, she was different. Itās the way she interacts with clients and really cares about service delivery; the content of the message and how itās received and absorbed,ā Tedder wrote.
Shabanova’s bespoke approach to clients
Shabanova’s approach encompasses more than just a strict, transaction-oriented manner.
āA lot of what we do is not just transactional but very strategic, very portfolio-oriented,” she said. “We look at city strategy, country strategies. Itās almost like a consulting job (rather) than a transactional broker job in a way, which we pride ourselves on, calling ourselves consultants.ā
Over the years, her team has helped a diverse roster of āsophisticated playersā find office space for a wide range of occupiers including financial institutions, law firms and telecommunication companies. But each client should be handled in an exclusive manner, she said.
āEvery client has a unique set of fingerprints. They all have different needs and often in our industry you say, āOh, itās a law firm. Iāll treat it like another law firm and just swap a logo on a deck and send it in.ā We do not do that. Itās very important that we understand our clients’ needs and that we tailor our approach to our specific client needs. I think that doesnāt go unnoticed,ā Shabanova said.
While every client has a different set of challenges, they look to brokers to guide them to the right destinations, which can at times lead to friction. But that is part of the relationship.
āThey hire us to be experts. They work with us to get our professional opinions on certain things that we do, and sometimes itās totally okay to push back on them, or to provide some controversial or innovative opinion that maybe others havenāt thought about and a lot of our clients respect,ā she said.
What makes a ‘great office broker’
Shabanova believes there are three aspects to becoming a great office broker.
āItās all about building relationships and our clients really feel the difference when youāre trying to truly help them instead of just closing a deal,ā she said.
In addition, being culpable is vital to show the client that you stand behind your advice.
āItās very important for our clients to see that we are accountable, that the deal ends with us and we take full responsibility for anything that goes wrong, that also goes a long way.ā
Finally, being humble and curious are keys to improving and ānever being stagnant and never thinking that you are the best in the business and nobody can catch up,ā she said.
āAlways trying to find ways to do things differently, do things better; relate better to our clients, to their needs, and just generally innovate in the way we do business, in the way we service our clients every day.ā
What she forecasts for 2025
As she looks ahead, 2025 seems bright for commercial real estate players after some difficult times during and post COVID.
āThere are a lot of mandates on the street, active tenants in the market. I think there is more confidence among tenants and landlords of some type of assets that are very optimistic,” she observed. “Tenants are starting to think about spending capital on improvements so it feels much better than it did even six months ago.ā
The uncertainty around back-to-office mandates is basically over, according to Shabanova.
āMost occupants know what the future looks like for them, whether itās two days a week, five days a week, three days a week: thereās a lot more clarity on that. Weāre not really having these conversations as much.
āI also think the market generally is picking up and what is happening in Toronto – and I believe it happens across major markets right now – is there has been a huge flight to quality.”
Source Renx.ca. Click here for the full story.
Michelin acquires two-building complex located near Ontario-Quebec, and U.S. borders
Broccolini has sold two industrial buildings totalling almost a million square feet, located on 63 acres of land in Cornwall, Ont., to Michelin for $246.35 million.
Broccolini purchased 80 acres from the City of Cornwall in Cornwall Business Park in June 2022. Itās across the street from where it built a 1.35-million-square-foot distribution centre at 1501 Industrial Park Dr. for Target in 2012.
āWe had a pretty strong conviction in being able to invest in that market on the basis of it representing a logistical hub in eastern Canada to service both Ontario as well as Quebec,ā Broccolini director of real estate development Toni Wodzicki told RENX in an exclusive interview.
Targetās tenure in Canada was short-lived and its former Cornwall facility is now used by Walmart.
What Michelin purchased
Michelin expressed interest in the fall of 2022 that it would like to occupy the Cornwall property and own it once Broccolini was finished construction. The two companies negotiated a structure for the recently closed deal.
Construction began in August 2023 and was completed in October. The worldās second-largest tire company is already operating at the property, which is considered its flagship distribution centre for Canada.
The property is occupied by two 36-foot clear-height buildings connected by passageways. One is more than 655,000 square feet and the other is more than 325,000 square feet.
The two buildings combine to have 73 loading dock doors and three drive-in doors. Thereās parking for 402 trailers and 120 vehicles.
Michelin has the ability to double the size of the smaller building in the future if it wishes, according to Wodzicki.
Broccolini still owns land in Cornwall
Broccolini still ownsĀ 17 acres at 1500 Industrial Park Dr.Ā thatās available for a design-build opportunity for various size requirements up to 342,000 square feet.
āWe’re not building it on spec, but weāre actively pursuing design-builds or partnerships on the property,ā Wodzicki explained.
The land is part of the over-1,600-acre Cornwall Business Park, which is home to large distribution centres, manufacturers and transportation companies.
Itās immediately adjacent to Highway 401 and a 60-minute drive from international airports in Montreal and Ottawa. Access to the United States is 4.8 kilometres away via the Seaway International Bridge, a deep sea harbour is 3.2 kilometres away and aĀ CNĀ freight line bisects the park.
āThe City of Cornwall would like to congratulate Broccolini on yet another successful project in the Cornwall Business Park,ā Mayor Justin Towndale said in a statement provided to RENX.Ā āThis state-of-the-art facility further solidifies Cornwall as a major distribution hub in Canada. We look forward to continuing to work with Broccolini on other development lands in the city.ā
Land bank and future industrial acquisitions
Broccolini provides a range of services, acting variously as a general contractor, construction manager, project manager, property manager and developer.
The company owns other Ontario development properties in Nepean and Kanata in Ottawa, St. Thomas, Hamilton, Caledon, Woodstock, Puslinch, Whitby, Cambridge, Milton, Kitchener, Innisfil, Oshawa and Halton Hills.
Wodzicki declined to comment on any specific future industrial developments the 75-year-old company has in its pipeline.
āWe’re sitting on great land that we have ready to engage to work with our industry partners to deliver on projects in new, high-efficiency space,ā Wodzicki said. āBut we’ll be patient as we assess those opportunities and where we can deliver them.ā
Wodzicki anticipates acquiring more industrial development sites in the province in 2025.
āWe take a broader view of the market in terms of where there are opportunities to service the logistical space,ā Wodzicki said of Broccoliniās industrial acquisition and development strategy in the province.
No new spec-built projects at this time
āAs it stands right now in Ontario, weāre not building any spec projects.
āBut we still have active demand from users seeking to approach us with more curated builds and opportunities. And as such, we feel a number of projects will kick off for us in 2025 on a design-build basis.ā
Broccolini also owns 40 development sites in Quebec, most within relatively close proximity of its home base of Montreal.
While the industrial construction and leasing markets were hyper-active earlier this decade as online shopping spiked and concerns with supply chains rose, huge rent increases have moderated and vacancy rates have crept up more recently.
āYou canāt paint the entire market with one brush,ā Wodzicki explained, noting there are differences even between nodes in the Greater Toronto Area. āThe fundamentals for large-scale industrial development still exist.
“We still aren’t in a completely balanced market as it relates to supply and demand.ā
Broccolini is focused on getting its sites shovel ready so it can act quickly and accommodate development opportunities when they arise.
Source Renx.ca. Click here for the full story.
Millcreek Business Centre in Mississauga comprises 324,362 sq. ft. of space on 20-acre property
Soneil Investments has acquired Millcreek Business Centre, comprised of seven industrial buildings in Mississauga and totalling 324,362 square feet on 20 acres of land, for more than $100 million from GWL Realty Advisors (GWLRA).
The 2020 annual report for GWLRAās Canadian Real Estate Investment Fund No. 1 showed it purchased a 50 per cent stake in the buildings at 6665-6725 Millcreek Rd. in June 2003. That ownership had increased to 100 per cent in subsequent annual reports.
āThis was our single largest industrial acquisition to date, so we were happy to be able to complete a deal like this in the current market,ā Soneil president and chief executive officer Neil Jain said in an exclusive interview with RENX.
Colliers brokered the transaction.
“From what I heard, it was quite a competitive process,” Jain said, āand based on my experience, these bids tend to involve institutional buyers.ā
Millcreek Business Centreās components
Millcreek Business Centreās buildings, which range in size from 34,950 to 63,401 square feet, were constructed from 1987 to 1989. Each of the buildings offers truck-level doors.
All of the buildings except one are full, giving the portfolio a 92 per cent occupancy rate, according to Colliersā marketing brochure. Theyāre occupied by 31 tenants with a weighted average lease term of 3.54 years at weighted average rents approximately 18 per cent below market.
āAverage rents in place are roughly $15-and-a-half, which is great because it really optimizes the amount of stability and in-place rent that’s there, but it’s not fully at market, which also allows us to have a lot of upside in the future,ā Jain observed.
There are a variety of different types of businesses and national, regional and local tenants in the buildings.
Jain said the portfolio ārepresents our bread and butter, which is small bay industrial tenants with minimal concentration risk and opportunity to grow the rent over time. They’re well-maintained, institutionally managed assets with clear heights throughout the buildings well over 20 feet, and for shipping it can accommodate 53-foot trailers throughout the complex.
āThe main part of the asset that we really liked was that there wasn’t too much concentration risk with a single tenant. The average tenant size is under 10,000 square feet, so that allows us to not be so heavily dependent on any one given tenant.ā
Prime industrial location
Millcreek Business Centre is easily accessible via commuter roads, 400-series highways and public transit. The location is also in reasonably close proximity toĀ Toronto Pearson International AirportĀ and rail intermodal terminals.
āI think this specific node of Mississauga is probably one of the strongest performing nodes for industrial in the GTA (Greater Toronto Area) and probably throughout Canada,ā Jain said.
While industrial rents have stopped climbing at the rapid rates of earlier this decade, Jain said small bay spaces have been resilient, continue to perform well and remain in demand.
āBy having a combination of larger and national tenants, there are always tenants who are looking to expand their premises,ā Jain said. āSo as vacancies come up in the units beside them, they’re always our first call to be able to see if they’re interested. And many times they are.ā
More acquisitions expected in 2025
Soneil is a private real estate corporation with a portfolio of more than five million square feet of industrial, office and retail space across the GTA.
The company will be seeking assets similar to Millcreek Business Centre in 2025, when Jain feels more acquisition opportunities will crop up due to lower interest rates and narrowing bid-ask spreads.
While the focus will remain on industrial properties, Soneil is willing to look at other asset classes if it likes their long-term prospects and lending partners are supportive.
āOver the last three or four years we’ve been buying somewhere between $200 and $300 million,ā Jain explained. āThis year, after this transaction weāll be at around $150 million, but we’re optimistic that next year weāll be somewhere in the $300- to $400-million range.ā
Soneil is rezoning elements of its portfolio for potential future development, but itās a long process and properties are already providing strong cash flow so he said thereās no urgency to aggressively move into that area.
Source Renx.ca. Click here for the full story.
