Hamilton City Centre | ? | 3x30 & 24 fl | Proposal

[CaptainKirk]

Originally Posted by matt602

There's been some serious talk from both property owners about opening the buildings up to the street

This really piqued my interest. Can you elabourate with any detail?

[matt602]

Originally Posted by CaptainKirk

This really piqued my interest. Can you elabourate with any detail?

http://www.thespec.com/news-story/22...reet-friendly/


"Jackson Square has hired a prominent local architect to figure out how to make the downtown mall more connected to the streets around it.

The mall was designed in the 1960s and built in the 1970s when the car was supreme, said David Premi, who has garnered international recognition for his redesign of the downtown library and farmers' market.

He says the discussions with mall owner Yale Properties are in the preliminary stages but he will look at bringing in more natural light, creating better signage and wayfinding inside the mall, and re-creating the mall's street entrances."

[Katrillion]

Hahahaha! Jackson Square will NEVER come close to even the standards of Square One! Haha and atleast Square One is going through renovations to make it more grand. JS has barely any natural sunlight (unlike Mapleview Centre nearby) and it's so small. Plus, it's soooo ghetto.

The City Centre on the other hand, is do-able. They just need to renovate the whole building to make it feel more luxurious and cozy. AKA warm wood tones and greenery. But in the end, it's a little too small anyways.

Praying one day that Hamilton gets their shit together.

[CaptainKirk]

Originally Posted by Katrillion

Hahahaha! Jackson Square will NEVER come close to even the standards of Square One!

I certainly hope not!

[ScreamingViking]

Originally Posted by Katrillion

Hahahaha! Jackson Square will NEVER come close to even the standards of Square One! Haha and atleast Square One is going through renovations to make it more grand. JS has barely any natural sunlight (unlike Mapleview Centre nearby) and it's so small. Plus, it's soooo ghetto.

The City Centre on the other hand, is do-able. They just need to renovate the whole building to make it feel more luxurious and cozy. AKA warm wood tones and greenery. But in the end, it's a little too small anyways.

Jackson Square's building footprint is pretty big: that block is nearly 400m by 200m - that's comparable in size to the footprint of Lime Ridge and Mapleview (which is a bit longer). Big chunks of the land belong to the arena, library, and City Centre but it does stretch the entire block.

I think its warren of corridors is just too claustrophobic. It's like they initially tried to apply the design of some of Toronto's early PATH corridors, but in a building that is not underground and not beneath the same scale of office towers. It was kind of neat in the 70s and early 80s, but way out of date today.

If Yale properties is serious about improving that building, and willing to put out the money to do so, cutting out roof sections above the mall corridors (where possible) and installing high skylighting that arches upward would do wonders. This would vastly reduce the rooftop plaza, but it has never worked anyway. Maybe it's better to give up the plaza entirely and create a green roof.

City Centre looks very dated inside too, with faded and peeling pastel paints and tiles. But I think it's a nice space. Most of the stores inside just don't generate a lot of foot traffic through much of the mall. Re-purposing it for more non-retail uses would make a lot of sense; the third floor is already that way but does not make use of the atrium space very well, with basically just blank walls facing the mall walkways. Also, I believe the city still has offices in the old Eatons store space but I have to wonder whether it's being used effectively.

Whatever the plans are, they must include opening up the perimeter walls at street level. That's the biggest issue with these two malls today, and probably the least expensive option for improving them.

[king10]

Originally Posted by Katrillion

Hahahaha! Jackson Square will NEVER come close to even the standards of Square One! Haha and atleast Square One is going through renovations to make it more grand. JS has barely any natural sunlight (unlike Mapleview Centre nearby) and it's so small. Plus, it's soooo ghetto.

The City Centre on the other hand, is do-able. They just need to renovate the whole building to make it feel more luxurious and cozy. AKA warm wood tones and greenery. But in the end, it's a little too small anyways.

Praying one day that Hamilton gets their shit together.

I sure hope jackson square doesn't become square one with its sprawling parking lots smack dab in the middle of suburbia which is supposed to pass as a downtown. Burlingtons downtown with 1/5th of the population is denser. sheesh

[Beedok]

So, this is probably the totally wrong place for this, but I'm going to guess that Hamilton couldn't ever get a PATH system of it's own right?

[matt602]

Originally Posted by Beedok

So, this is probably the totally wrong place for this, but I'm going to guess that Hamilton couldn't ever get a PATH system of it's own right?

Probably not. I don't think there'd be enough high traffic destinations to warrant it. Even Toronto's PATH system is just an empty tunnel running from Union to Bay and Queen at pretty much any time other than rush hour or normal business hours. If Hamilton had one, it'd be even worse. Those kinds of systems need constant draws of people to common above-ground destinations to make them work safely and effectively.

I'd imagine we'd need many more, and busier office buildings spread throughout downtown and LRT stops to tie the PATH together. The subway stations in Toronto serve the same purpose.

[thistleclub]

Originally Posted by Beedok

So, this is probably the totally wrong place for this, but I'm going to guess that Hamilton couldn't ever get a PATH system of it's own right?

Originally Posted by matt602

Probably not. I don't think there'd be enough high traffic destinations to warrant it.... Those kinds of systems need constant draws of people to common above-ground destinations to make them work safely and effectively.

PATH is reportedly used by an estimated 100,000 commuters daily, and sits under the city's financial district which towers over most of the network. As well,

More than 50 buildings/office towers are connected through PATH. Twenty parking garages, five subway stations, two major department stores, six major hotels, and a railway terminal are also accessible through PATH. It also provides links to some of Toronto's major tourist and entertainment attractions such as: the Hockey Hall of Fame, Roy Thomson Hall, Air Canada Centre, Rogers Centre, and the CN Tower. City Hall and Metro Hall are also connected through PATH.

A similar dynamic supports Montreal's Underground City.

Density of development as well as density of residents/jobs helps support PATH, and property owners control the segments beneath their properties. This becomes complicated in Hamilton's downtown, where public-owned properties are thick on the ground; even under a scale model version of PATH, the City would operate commercial corridors that would potentially cannibalize small business on the surface.

[ScreamingViking]

Originally Posted by Beedok

So, this is probably the totally wrong place for this, but I'm going to guess that Hamilton couldn't ever get a PATH system of it's own right?

Others have noted it's just not feasible for the pedestrian flows in Hamilton. Also consider that Toronto's central financial district has a daytime population of probably a couple hundred thousand, and there's a relative lack of street retail because of all the large office buildings, so the PATH makes a lot of sense from a commercial perspective.

Back in the early 1980s I can recall talk about creating a "+15" system of skywalks in Hamilton, a smaller version of the ones in Calgary and Minneapolis. Aside from the bridge from the Sheraton to the convention centre, nothing developed, probably again because the demand just isn't there. Also, they may be climate controlled, but effects on street life are causing planners to reconsider their value.

[SteelTown]

Pretty sure there's a large creek running underneath the downtown area. Plus there's lots of abandon tunnels. Think the Armoury has active tunnels.

[matt602]

It's all about demographics. An important thing to note is how urbanized Mississauga has become in the last decade.

[matt602]

The only lot I've ever seen close to full is the one for Walmart, which is arguably much smaller than they usually build them. The rest are usually way under capacity.

[lucasmascotto]

City centre closed for stand-off
The Hamilton Spectator

Police are asking the public to stay away from the City Centre, which has been closed due to a standoff since 1 a.m.

Police are handling a crisis with a person they described as "emotionally disturbed" in the Centre, at James and Wilson streets, attached to Jackson Square. A dozen police cruisers and EMS vehicles were parked on James Sunday morning, and the door to the centre at 77 James Street North is taped off. No streets are closed.

Police will announce when the Centre reopens.

[mattgrande]

Rumour has it there is/was a man threatening to jump from the top floor. This is just what someone said on reddit, though, so who knows. The person claims to work in the City Centre.

[king10]

the spec via hamilton economic development twitter is reporting the city centre has been sold https://twitter.com/hamiltonecdev

also missed that joey coleman reported it had been sold last week http://www.marketwatch.com/story/par...k=MW_news_stmp

[lucasmascotto]

Partners Real Estate Investment Trust Announces Senior Management Changes and Update on Ontario Property Acquisition
The Wall Street Journal: Market Watch

VICTORIA, BRITISH COLUMBIA, Feb 11, 2014 (Marketwired via COMTEX) -- Partners Real Estate Investment Trust CAAR.UN +0.52% (the "REIT") is pleased to announce the appointments of Ron McCowan as interim-Chief Executive Officer and President and Derrick W. West as Chief Financial Officer effective immediately. Both appointments have been made pursuant to the REIT's management agreement which will be terminated on February 15, 2014 in connection with the previously announced proposed internalization of the REIT's management. Mr. McCowan and Mr. West will continue in these capacities on completion of the internalization process and more details regarding the REIT's internalization are expected to be announced on or about February 14, 2014.

Mr. McCowan is the owner of McCowan and Associates Ltd. and an entrepreneur who possesses more than 40 years of extensive experience in real estate development, construction, ownership, and management. The REIT's Board of Trustees is currently engaged in a comprehensive executive search for a permanent Chief Executive Officer.

Mr. West most recently served as the Chief Financial Officer of an international mining services corporation with operations in Canada, Russia, Mongolia, and Mexico. Mr. West has amassed over 15 years of experience in financial reporting, tax planning and compliance, treasury management, business development, and internal control compliance. Mr. West has additional experience in the commercial real estate sector and previously served as the Vice-President of Accounting and Administration for Plazacorp Retail Properties Limited. Mr. West is a Chartered Accountant and holds a Bachelor of Commerce degree from Mount Allison University.

The REIT would like to thank Patrick Minuitti for his contribution and commitment to the REIT and its unitholders during his tenure as Chief Executive Officer. Mr. Miniutti has indicated that he will remain a Trustee of the REIT.

Ontario Property Acquisition

The REIT is pleased to announce that it has agreed to amend its purchase and sale agreement (the "Agreement"), originally announced on December 18, 2013, to acquire four retail centres in Ontario (collectively, the "Properties"). The Properties are located in Hamilton, London, Kemptville, and North Bay, and total approximately 650,000 square feet of gross leasable area.

Pursuant to such amendments, the vendor, Holyrood Holdings Limited (the "Vendor"), has guaranteed $7,240,000 of the Properties' annualized net operating income ("NOI") until such time as this amount has been achieved for a full calendar quarter of operations. Additionally, the Vendor has agreed to fund certain non-recoverable capital improvement projects that are expected to materially reduce the REIT's anticipated capital expenditures on the Properties in the future. These capital improvement projects include a substantial redevelopment of the Crossroads Centre in London. This redevelopment will considerably improve that property's layout and overall aesthetic appeal.

Based on the $7,240,000 of annualized NOI outlined above, management currently expects the newly acquired properties to generate an annual adjusted funds from operation ("AFFO") contribution of approximately $4,600,000. As a result, the transaction will be immediately accretive to the REIT's AFFO per unit.

The REIT will pay approximately $109,100,000 for the Properties, net of an interest rate adjustment credit of $600,000. This purchase price will be satisfied by (i) the assumption of certain debt secured by the Properties, and (ii) the issuance of units of a limited partnership to be formed by the REIT for the purposes of completing the acquisition as purchaser (the "New LP"), with such units including 6,450,000 class B units of the New LP (the "Class B Units"). The Class B Units will be exchangeable for units of the REIT on a one-for-one basis and will be the economic equivalent of units of the REIT and carry the right to vote at the REIT level. The Class B Units will be issued at an effective price of $7.61 per Class B Unit. After giving effect to the issuance of the Class B Units, the Vendor is expected to hold approximately 19.9% of the outstanding units of the REIT, calculated on a fully-diluted basis.

For the purpose of IFRS accounting for the transaction (i) the interest rate adjustment credit will be added back to the purchase price, and (ii) the transaction will be based on the then current market value of the units being issued. As of Monday, February 10, 2014, the REIT's units had a market value of $5.74, which would result in a transaction value of approximately $97.4 million under IFRS accounting.

The Properties include:

-- Hamilton City Centre, a multi-tenant retail centre located at the heart of Hamilton's business district in Hamilton, Ontario. Originally built
in 1990, Hamilton City Centre comprises approximately 423,900 square feet of gross leasable area. The property has been well maintained, and its more than 50 tenants include Hart Stores, a branch of Sun Life Financial, Worlds Gym, Thunder Alley Entertainment and the City of Hamilton.

-- Crossroads Centre, a multi-building, multi-tenant retail centre located just north of Highway 401 in London, Ontario. Originally built in 1990, Crossroads Centre comprises approximately 159,800 square feet of gross leasable area. The property will be aesthetically enhanced with new facades and its tenants include Winners, Designer Depot, Living Lighting, and OK Tire. The centre's gross leasable area now reflects the removal of a building, which will allow for the construction of four additional out-parcels. The removal of the building and aesthetic enhancements are included in the major capital project noted above, which is to be funded by the Vendor.

-- Two single tenant retail buildings adjacent to the North Bay Mall at the centre of the commercial district in North Bay, Ontario. Originally built in 2006 and substantially improved in 2013, the property comprises approximately 39,000 square feet of gross leasable area. Its tenants include Shoppers Drug Mart and Giant Tiger.

-- A multi-tenant retail property in Kemptville, Ontario, which is approximately 55km south of Ottawa and the largest community in North Grenville. Built in 1998, the property comprises approximately 26,500 square feet of gross leasable area, and its tenants include Dollar Tree and Giant Tiger.

"We are very excited at the opportunity to add all four of these properties to the REIT's dynamic portfolio," stated Mr. Joseph Feldman, the Chairman of the REIT's Board of Trustees. "The REIT's portfolio will grow significantly as a result of this transaction, which increases our total gross leasable area by more than 25% and reinforces our position within the healthy Ontario marketplace. We have clearly articulated our desire to utilize accretive acquisitions to both enhance and protect unitholder value. This transaction is a clear achievement of that objective. With the NOI guarantee now in place, we are increasingly confident that this transaction will be accretive to the REIT's AFFO per unit. Additionally, the financial structuring of this acquisition will contribute to lowering the portfolio's overall debt to gross book value and further decreasing our payout ratio. The REIT is preparing for a transformational 2014, and this transaction marks the first step towards that goal."

The closing of the transaction is expected to occur by the end of February, 2014. While the REIT has completed all necessary due diligence, the completion of the transaction remains subject to regulatory approval and the fulfillment of certain conditions, including the consent of the applicable lenders to the REIT's assumption of mortgage debt on the Properties.

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 39 retail properties, well-located in British Columbia, Alberta, Manitoba, Ontario and Quebec, aggregating approximately 2.7 million square feet of leasable space. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighbourhood shopping centres located in both primary and secondary markets across Canada.

Disclaimer

Certain statements included in this press release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect," "will" and similar expressions to the extent they relate to Partners REIT. The forward-looking statements are not historical facts but reflect Partners REIT's current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including access to capital, regulatory approvals, intended acquisitions and general economic and industry conditions. Although Partners REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.

[CaptainKirk]

http://www.thespec.com/news-story/43...-of-109m-deal/

City Centre sold as part of $109M deal
By Meredith MacLeod

The Hamilton City Centre has been sold as part of a $109-million deal swapping four retail centres in Ontario for equity in a real estate investment trust.

At 423,900 square feet, the 24-year-old Hamilton City Centre makes up almost two-thirds of the gross leasable area in the deal with Partners Real Estate Investment Trust, which also includes properties in London, North Bay and Kemptville.

The City Centre is attached to Lloyd D. Jackson Square but is a separate operation. It opened as the Eaton Centre in 1990 and went bankrupt 10 years later. It has been dogged by high vacancy rates, unpaid taxes and tenant turnover but was also filled with city staff and politicians while Hamilton City Hall was renovated.

It still houses some city staff, along with call centres, brokerages and financial service firms. The property is assessed at about $20 million and pays about $540,000 in property taxes. Taxes for 2013 are in arrears by about $377,000, according to a city tax official.

Officials from Partners did not respond to a request for comment from The Spectator. The press release announcing the deal quotes Joseph Feldman, chair of the board of trustees as saying the deal is the first step in a "transformational 2014" for the REIT.

"The REIT's portfolio will grow significantly as a result of this transaction, which increases our total gross leasable area by more than 25 per cent and reinforces our position within the healthy Ontario marketplace."

Glen Norton, the city's manager of downtown renewal, said he hasn't spoken to the new owners. But he said vacancies are falling in both Jackson Square and the City Centre.

"Until we know the intent of the new owner, we don't know much about its impact. Will there be a more aggressive management team to find tenants, we don't know. But it seems to be a vote of confidence in this market."

Ward 2 Councillor Jason Farr says the deal is more proof of an "ongoing renaissance" in the city.

"I am confident that this investment is the result of a Canadian company understanding and appreciating Hamilton as the best place to invest."

REITs acquire and manage real estate and pay out a minimum of 90 per cent of their taxable income to investors. Partners directly or indirectly owns 39 retail properties in British Columbia, Alberta, Manitoba, Ontario and Quebec, totalling about 2.7 million square feet of leasable space.

Michael Missaghie, a senior portfolio manager at Sentry Investments, says there are about 35 to 40 public REITs in Canada with a total market capitalization of $50 billion. They are stable, tax efficient investments for people wanting to invest in real estate who don't have access to large amounts of capital.

The deal, which is expected to close at the end of the month, is not a cash sale.

Instead, Partners will assume debt and will issue 6.45 million voting shares at $7.61 each under a limited partnership. The seller will then have about a 20 per cent share of Partners.

Missaghie says the assets for unit shares transaction by Partners is not typical but is used by smaller REITs looking to grow and property sellers looking for ownership positions in larger, more diversified organizations.

The vendor is named in Partners securities filings as Holyrood Holdings Limited. It is unclear how that company is related to Ron McCowan, who bought the City Centre in 2011 for about $25 million.

A numbered Ontario company that lists McCowan as its president is one of two companies behind a $110-million mortgage charged against the City Centre last June.

McCowan bought $27 million worth of shares in Partners last November.

A previous management agreement with McCowan was terminated (with a termination fee of $1.5 million) in order to internalize management in the REIT. He was then named interim CEO.

Under that plan, Partners' head office will relocate from Victoria, B.C. to Barrie, Ont., where McCowan's business is located.

The name Holyrood Holdings Limited was reserved by an Ontario corporation on Jan. 27, according to OnCorp Direct Inc., which is contracted by the provincial government to provide electronic access to official business records.

But Holyrood has not been incorporated, so the directors are not known.

Efforts to reach McCowan Tuesday were unsuccessful. He is described in a Partners press release as "an entrepreneur who possesses more than 40 years of extensive experience in real estate development, construction, ownership and management."

Partners says Holyrood has guaranteed the four properties in the deal will provide more than $7.2 million a year in net operating income. A press release describes Hamilton City Centre as a "multi-tenant retail centre located at the heart of Hamilton's business district … The property has been well maintained and its more than 50 tenants include Hart Stores, a branch of Sun Life Financial, Worlds Gym, Thunder Alley Entertainment and the City of Hamilton."

The Spectator reported last week that Thunder Alley is a proposed $3.5-million development for 40,000 square feet on the lower level, including 10 lanes of bowling, two bars, a restaurant and a video arcade.


[email protected]

905-526-3408 | @meredithmacleod

The City Centre

The site of the City Centre on James Street North was the home of Hamilton's original City Hall for 71 years before it was torn down for an Eaton's department store in 1960.

That was replaced by Cadillac-Fairview's $70 million Eaton Centre in 1990.

The mall was liquidated as part of the T. Eaton Company bankruptcy in 2000 and was purchased by Fercan Developments for $3.6 million.

In 2011, it was purchased by Ron McCowan for about $25 million. At the time, its vacancy rate was about 25 per cent.

[ScreamingViking]

Hopefully this results in more effort to do something with that building. Despite grand ideas, it's been a slow process.

[movingtohamilton]

Originally Posted by CaptainKirk

..." The property has been well maintained and its more than 50 tenants include Hart Stores, a branch of Sun Life Financial, Worlds Gym, Thunder Alley Entertainment and the City of Hamilton."...

50 tenants? This place feels like a complete wasteland in the retail floors. Outlet stores with no customers. The usual dollar stores. No hustle and bustle of people. Uninviting.

Jason Farr thinks this new deal is a "proof of a ongoing renaissance". Huh? It certainly will benefit the REIT. Perhaps the city could collect on the taxes that are in arrears.