Real Estate Developments coming to Hamilton
New developments coming to Hamilton
Hamilton’s real estate and development markets have benefited from spillover from Toronto, located 70 kilometres to the east, as both companies and residents look beyond the city borders for availability and affordability reasons.
Hamilton passed the $1-billion mark for building permits in June, the earliest that’s ever happened. The previous earliest month was August 2019. Hamilton has now reached the $1 billion milestone in 11 of the past 12 years.
Major projects proposed, or in the early stages of development, include:
– DiCenzo Construction Company’s proposal for two downtown mixed-use residential towers of 42 and 38 storeys with 792 units, 672 parking spaces and ground-level commercial space at 117 Jackson St. E.;
– Vrancor’s proposal for a downtown 30-storey development at 213 King St. W. that would include a 110-suite hotel in the podium and 241 rental units in the tower;
– First Avenue Investment Counsel’s proposal for a downtown development with three 30-storey condo towers and 908 units at 41 Wilson St. E.;
– New Horizon Development Group’s proposal for four 12-storey condos and four four-storey townhomes with a combined 1,407 units on the former Brock University campus near Red Hill Valley at 1842 King St. E.
– the Labourers’ International Union of North America’s LiUNA Pension Fund of Central and Eastern Canada and Fengate Asset Management’s downtown mixed-use development with more than 500 residential units that has broken ground at 75 James St. S.
Biggest third-quarter transactions
The biggest transactions during the quarter were:
– 140 Garner Rd. E., a 172-acre tract of land located close to John C. Munro Hamilton International Airport that was sold by a private individual to Alberta Investment Management Corporation (AIMCo) for $38 million;
– 1205 Glancaster Rd., an 89.54-acre piece of ICI land adjacent to the airport that was sold by a private individual for $34.32 million to Broccolini;
– 360 and 410 Lewis Rd. in Stoney Creek, a 205,000-square-foot multi-tenanted industrial flex building sold by a private individual for $34 million to Forge & Foster, which will renovate and restore the exterior, try to lease vacant units, explore converting units to industrial condominiums, and change the name to Orchard Place to pay homage to the fruit farms in the area;
– 2876 Highway 6, a 56.37-acre piece of land near the airport that was sold by RCG Upper James Hamilton Inc. to Pure Industrial for $33.95 million;
– 449 Mohawk Rd. E., a 9.79-acre retail plaza on Hamilton Mountain sold by Sun Life Assurance Company of Canada for $16 million to New Horizon Development Group, which Manojlovich expects will turn it into a residential development; and
– 1 Head St., a 121,900-square-foot industrial building in Dundas sold by Forge & Foster to a private individual.
Airport area attracting lots of interest
Hamilton received a Foreign Trade Zone designation a year ago from the federal government. As a result, businesses that import and/or export goods or manufacture products in the city were granted access to direct support on a range of duty deferrals and tax exemptions.
Hamilton’s international airport is one of Canada’s largest for domestic air cargo distribution and has received federal government funding to support its growing importance.
The City of Hamilton’s Airport Employment Growth District is a planned development area of 1,361 acres of employment land bounded by: Garner Road East and Twenty Road West to the north; Upper James Street to the east; Whitechurch Road West to the south; and Fiddler’s Green Road to the west.
“The airport is a big attractor to investors, particularly in the industrial space,” said Manojlovich. “There’s lots of industrial land that’s getting quickly gobbled up by massive players.”
In addition to the properties near the airport noted in the Q3 transactions, there are other major new industrial facilities and proposed developments in the area:
– DHL Express invested $100 million in a 238,000-square-foot facility, which features a fully automated sorting system with the capacity to process 28,000 packages per hour. It opened at the airport in September;
– Fengate Real Estate acquired 75 acres at 3054 Homestead Dr., adjacent to the airport, in the spring. The site needs to undergo rezoning and the plan is to create an industrial business park of roughly one million square feet; and
– Broccolini acquired industrial land at 9451 Dickenson Rd. W., with direct airport frontage, on which it plans to build a million-square-foot facility.