The Tannery District is a 340,150 square foot property redeveloped by Cadan Properties.  It was the Lang Tannery, the largest tannery in the British Commonwealth at one point.

With this purchase, Allied REIT adds to its position as the dominant landlord in the Warehouse / Innovation District.  They own 72 Victoria Street across the street, another converted building, and they have an interest in the Breithaupt Block redevelopment with Perimeter Developments.

Here are some details, courtesy of MarketWire.com:

“In addition to being immediately accretive, the complex will be a strong complement to our properties on Victoria and Breithaupt Streets,” said Michael Emory, President & CEO. “The three properties together form the core of the Class I office component of Kitchener’s Warehouse District, which is rapidly becoming both a transportation and technology hub for the surrounding region.”

With the acquisitions announced today, Allied has completed or announced nine acquisitions in 2012 for $150 million, one in Victoria, one in Calgary, five in Toronto, one in Kitchener and one in Montréal. Each acquisition continues Allied’s efforts to consolidate the ownership and operation of Class I properties in the downtown area of major Canadian cities.

Occupying two entire city blocks, bounded by Charles on the north, Victoria on the west, Oak on the south and Linden and Francis on the east, the Lang Tannery (121 & 151 Charles Street, 189 Joseph Street and 101 Victoria Street South) is comprised of 340,150 square feet of GLA, 95% of which is leased to tenants consistent in character and quality with Allied’s tenant base, including Google, Desire2Learn and Communitech, and 345 surface parking spaces. The complex is located in close proximity to Allied’s properties at 72 Victoria Street and 20-24 & 51 Breithaupt Street.

Built in 1894 and 1904 as a facility for the production of leather shoe-soles, the complex was redeveloped for office and retail use over the last four years. It is comprised of four buildings, two of which are single-storey and two of which are multi-storey. The buildings have very good Class I attributes and have been integrated internally to a considerable degree.

The acquisition is expected to close on August 1, 2012, subject to customary conditions. The purchase price for the complex represents a capitalization rate in excess of 7% on the current annual net operating income (“NOI”).

The Tannery is one of the best assets in Waterloo Region, having tenants like Google, Communitech & Desire2Learn.  This is a great acquisition for Allied REIT, and shows a continued confidence in Waterloo Region’s economy & future.

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Click for full size image Via BuzzBuzzHome, The most complete listing of new construction homes in Toronto and other major centres.

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This is a high profile retail location, across the street from Wiflrid Laurier University, and just south of one of the busiest corners in Waterloo Region.

Note: Morty’s Pub is not moving from their current location.

Details as follows:

FAREWELL TO FORWELL SUPER VARIETY AFTER 52 YEARS

WATERLOO (March 28, 2012) – Bonnie Forwell Currie, owner of Forwell Super Variety, will serve her final customers on Saturday, March 31st, 2012.

Having served the community since 1960, ‘Forwell’s’ has touched so many residents and students in a very special way. With the landmark Waterloo convenience store sitting at the corner of King and University for over 50 years, Forwell Currie says students would often come in and say goodbye to her before going home at the end of a semester. Saturday will be a chance for her to say goodbye and thanks to the students and all her “regulars”.

“It’s bittersweet to bid farewell to this store over five incredible decades after my father opened it, but my family and I have so many memories to reminisce upon, and we’ve been so touched by the warm stories our longtime customers have been sharing,” Forwell Currie said. “While all good things must come to an end, it is so satisfying to be able to pass the property on to great people who have shown such a commitment to building legacies in our community.”

Forwell’s once had a restaurant downstairs, which is fitting since the new owner of the property is a local restaurant owner with a connection to the Forwell’s location.

Jay Taylor, the owner of Morty’s Pub, says when the opportunity came to purchase Forwells, he couldn’t resist.

“That corner will always mean something to me, it’s full of nostalgia, and memories for me and my family,” Taylor said. “Forwell’s is right next door to our original Morty’s Pub location. My first memories of Forwells are from when I was ten years old, and delivering subs there, with my father who had a catering business. A few years later, in 1981, my Dad opened up Morty’s Pub at King and University, right next to Forwell’s. We later moved the family business a few blocks down the street. We’ve been serving our community now for over 30 years. I plan on making something special out of that location. It means a lot to me, my family, and this community.”

On Saturday, March 31st, Forwell’s Super Variety at 242 King Street North will open its doors for the final day of business before closing up shop on 52 years of service. A farewell party will be held at Morty’s Pub at 272 King Street North at 7 o’clock.

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Last night I spoke with Brent Davis from The Record about WLU’s recent acquisition of the student housing portfolio on Bricker, Ezra and Hickory.  The entire article can be found at this link.  Below are some excerpts of my comments:

“They ask for a development freeze on what is essentially direct competition to the assets they just bought,” said Benjamin Bach, a commercial real estate agent with Keller Williams Golden Triangle Realty.

The deal — which Bach said will represent one of the largest commercial real estate transactions in the region this year — was facilitated by Coldwell Banker Peter Benninger Realty. Bach said the parcel — all from a single owner — had been on the market for at least six months, and that Laurier paid very close to the asking price.

Bach and others want to know if Laurier disclosed the purchase negotiations, assuming they were ongoing when the university advocated for the development freeze.

…

The study aims to create a new vision for Northdale, away from the student housing developments that Laurier president Max Blouw warned earlier this month were turning the neighbourhood into a “student ghetto.”

But Bach argued Laurier’s new acquisitions south of campus fit the description of precisely the types of buildings Blouw and his University of Waterloo counterpart Feridun Hamdullahpur were campaigning against.

More on this investment transaction can be found here: WLU drops $58.9 mil on Student Housing Investment Portfolio in Waterloo

Benjamin Bach Talks to the Waterloo Record – Laurier Buys Up $59M Buildings

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Laurier acquires apartment buildings adjacent to Waterloo campus

WATERLOO – Wilfrid Laurier University has purchased 12 student-housing apartment buildings adjacent to its Waterloo campus.  The acquisition, valued at $58.9 million, closed today, Thursday, March 22.

Nine of the properties are recently constructed four- and five-floor buildings and three are renovated multi-tenant houses. Together, they have a combined capacity to house approximately 785 students. Eleven of the buildings are located on the south side of Laurier’s Waterloo campus: 10 on Ezra Street and one on Bricker Avenue. The 12th building is located on Hickory Street West, adjacent to Laurier’s Northdale building on the north side of the campus.

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The Works Burger has signed a deal to move into the former Janet Lynn’s space at 92 King Street South in Uptown Waterloo.

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New Kitchener Waterloo Restaurants

This is the latest restaurant chain to come to Kitchener Waterloo; the Honest Lawyer recently announced plans to move into the main floor of 305 King Street in Kitchener, CARA has opened three new restaurants at the Boardwalk (Montana’s, Milestone’s and a Swiss Chalet), Prime Pubs just opened Fionn MacCools in Deer Ridge, Moxie’s is coming to Kitchener,  Charcoal Group is opening two Beertowns (Uptown Waterloo & Cambridge) and there will be more restaurants opening in KW soon.

Many of the large restaurant brands are actively looking for sites in Kitchener and Waterloo, and one popular restaurant has recently found space in Waterloo – but they haven’t publicly announced it yet and I don’t want to ruin their surprise.

Why Retail is Drawn to Kitchener Waterloo

As we talked about in 2011 (Kitchener Waterloo Commercial Real Estate is HOT),  major brands like Apple, Target, CARA and Prime Pubs seeking to establish or expand their presence in Kitchener Waterloo.  Why?  These brands want access to our market place – high levels of employment & a  lower cost (but not standard) of living means that residents of Waterloo Region have more disposable income to spend, and retailers want to tap into that.  We expect this trend to continue.

Looking for Space in Kitchener Waterloo ?

If you are a retailer looking for space in Kitchener Waterloo, we would be happy to assist you in your search. We have a number of high profile commercial sites available, and we conduct off market searches for our clients.

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Sage Condos Sales Update

Sales launched today in Waterloo, and the building already has a majority of the units sold.  There is an extremely limited supply of 3 bedroom condos,  and a decent selection of 5 bedroom condos.  Contact us immediately to reserve the condo of your choice.

Sage Condos is sold out, save for 3 penthouses which have not been released yet.  We have similar product available, contact us for details.

—

Sage Condos, Waterloo Ontario

This week we have had a lot of interest from real estate investors in Waterloo’s newest condo development, Sage Condos.

If you would like to review the cash flow projections and  condo floorplans click here to send us an email and we will send you full information.

Sage is a pre-construction condo development at the corner of Hickory & Spruce in Waterloo, very close to Wilfrid Laurier University, and steps to King Street.

Like most of the development in the surrounding area, this building is targetted to students; what sets Sage apart is that it is built to appeal to the sub market of students looking for a premium housing solution, something nicer than the typical apartments around campus, and they’re willing to pay premium rent for a premium condo.

Waterloo’s Student Housing Market

New Building in Waterloo’s Student Housing market  have been in strong demand by real estate investors because of the strong & stable cash flow they offer.  The issue that most investors have is that the size of these student housing apartment building (typically priced from $1,200,000 and up) require more equity invested as a down payment than may be available.

Sage Condos solves this problem, by offering a brand new student rental building with condominium ownership – meaning that you can buy one unit in a brand new building rather than having to buy the entire apartment building.

The Sage Condos Opportunity for Real Estate Investors

Sage Condos has been specially designed to be an easy real estate investment to own.

The developer has partnered with DOMUS property management to offer turn key hands off property management for owners, and DOMUS has a very generous incentive offer available for people who purchase at Sage (full details available).

The developer is also offering a rental guarantee for the first year, something that is not available with other new condo developments in Waterloo.

Action Required

If you’re interested in a hands off student housing investment, this property is worth strongly considering.

If you would like to review the cash flow projections and  condo floorplans click here to send us an email and we will send you full information.

Public sales start Monday January 23 2012 and the developer is expecting to sell out very quickly.

Advance sales have been strong, and we think the pace will accelerate when access is opened up.

If you would like to receive priority choice of units, contact me immediately.

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The last couple of years have seen some huge brands set up shop in Waterloo Region, with others announcing plans to open in 2012 and 2013.

Brands such  as Google, Apple, Coach and Marshall’s have come into Kitchener Waterloo – Google expanded from a small Waterloo office to a large presence at The Tannery in Kitchener – and soon enough we will see a few Target stores  in the Region.  Plus the rumours (so far not confirmed) that Facebook is coming to Kitchener, and that Whole Foods has a site picked out too.

Why are companies coming to Kitchener Waterloo?

Office Tenants

The last few years have been eventful in the Kitchener Waterloo Office Real Estate market.

The Tannery was converted to office space, and today houses Google, Desire2Learn, Communitech, RIM and start up companies that are among the most successful in the country.  It is across the street from a vibrant residential loft building, and a Medical School.

The Breithaupt Block is currently being converted, bringing an additional 175,000 square feet of Class A Brick  & Beam space to the Innovation District in Kitchener.

In the last two years, RIM has built and occupied hundreds of thousands of square feet of Class A office space in North Waterloo, as well as additional space throughout Waterloo Region.

DUNDEE REIT acquired the REALEX portfolio (formerly the locally built CORA portfolio) as well as another building downtown on King Street.

The reason that international tech leaders like Google are setting up large presences in Kitchener Waterloo is that Waterloo Region contains lots of smart, highly skilled workers.  University of Waterloo, Conestoga College and Wilfrid Laurier University produce very smart graduates, and the region has a culture of technological entrepreneurship that encourages people to think differently and innovate.

Companies want a bit of that magic.

Retail Tenants

Retail tenants want to come to Waterloo Region to sell goods to us – residents on the region have a higher than average employment rate, and a lower cost of living, leaving more money left over to spend shopping and eating out at restaurants.

We have seen major national tenants set up retail stores in town – most recently the Apple Store at Conestoga Mall, soon to be joined by Target – and Lululemon has a temporary store at the Uptown Waterloo Shops and is rumoured to be evaluating a permanent presence in Waterloo Region.

As I mentioned above, in addition to the restaurants that have announced new stores in the area, there are several prominent chains in the site selection process, looking at sites throughout Kitchener Waterloo and Cambridge.

What brands do you want to see come to Kitchener Waterloo?

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570 News is running a story (below) in which they say they’ve confirmed that Facebook is coming to town.  At the moment, the only source for this is ” the company doing the work on the building.”

The Record is reporting

“Tony D’Angelo, of AIM Environmental Group, led the cleanup of the site that included the removal of 18 underground storage tanks.

D’Angelo said Facebook’s move to Kitchener was openly talked about at the job site, but nobody at the city, Facebook, the company redeveloping the buildings or the high-tech community could confirm it.”

Other commercial REALTORs I’ve spoken too have also heard the rumours but nothing concrete.  The brokerage team that acted for Facebook in their recent Toronto lease is tight lipped, according to a friend who spoke with them.

In search of confirmation, I reached out to a friend of mine at Facebook who told me they spoke to “[people in California] and haven’t heard anything about a move to Kitchener. Seems to be just a rumour.”

So, we shall see.  Certainly great news for Kitchener Waterloo if it materializes!

Facebook “Likes” Kitchener

570 News has confirmed that Facebook will be setting up an office in Kitchener at the Breithaupt Block that’s currently being re-developed.

The author of an article in a construction industry newspaper tells 570 News the company doing the work on the building indicated that it’s for the world’s largest social media website.

Benjamin Bach, a commercial Realtor with Keller Williams tells 570 News he’s heard the rumour for some time now.  

“They want to have a presence here in the Region, so I haven’t been able to confirm directly with Facebook, although I did reach out to somebody in California earlier that they are coming here, but it definitely fits with what we’ve been hearing in the rumours, as well as some the moves that the other global tech giants have been making.”

Bach says the location would be perfect for the company and has a lot of character.

“It’s right at King and Breithaupt so it’s just a block off from the planned Regional transit center as well as the University of Waterloo pharmacy school and the McMaster Health Science and the Tannery, so it’s really right it the heart of the innovation district.”

The Breithaupt building site has 175 thousand square feet of office space. The Stoney Creek company that’s taking care of the environmental abatement tells the construction industry newspaper its being  asked to create three swaths right through the building, then prepare the structure for small outdoor courtyards that will be built inside the block of buildings.

Benjamin Bach says based on the tech sector here in Waterloo Region and intellectual capacity from the Universities it the only make sense.

“This is just part of a trend we’re seeing of retail and office tenants wanting to have a presence here in Waterloo Region. Hopefully we’ll be seeing Mark Zuckerberg here in the Region in the next couple of years.”

There is no time line as to when the company would open its doors for business. The social media company’s head office is in Toronto.

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Harp Arora on Facebook asked about a location in Kitchener vs Waterloo.  From what I’ve heard, Whole Foods wants a site that has at least 40,000 square feet of retail, and sites that size are easier located in Kitchener versus Waterloo.

Further info as it becomes available …

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