The Sheridan Lands - 1430 Trafalgar Rd Opportunity

Request for Proposal
Joint Venture or For Sale
The Sheridan Lands - 1430 Trafalgar Rd
Oakville, Ontario, Canada
Opportunity
On behalf of Sheridan College Institute of Technology and Advanced Learning
(“Sheridan”), Avison Young Commercial Real Estate (Ontario) Inc., Brokerage, is
pleased to offer the property described herein through a joint venture or for sale
(through a Request for Proposal Process); The Sheridan Lands, Oakville, Ontario.
This 17.46 acre development site is located north of the QEW, at the northwest
corner of Trafalgar Road and Sheridan College (Ceremonial Road).
Table of Contents
Confidential Information & Disclaimer
Executive Summary
Property Overview
Location Overview
Market & Economy
Additional Information
Introduction
Investment Highlights
Contacts
Investment Highlights
Site Plan
Fact Sheet
Land Use
Zoning
Site Location Map
Location Overview
Location Attributes
Market & Economic Fundamentals
Developments
Development Radius Map
Offering Guidelines
3
4
5
6
8
10
11
12
13
15
16
17
19
21
22
24
Confidential Investment Memorandum
Oakville, Ontario
Confidentiality & Disclaimer
Confidential Information & Disclaimer
This is a Confidential Investment Memorandum (“CIM”) intended solely for your own use in considering whether to pursue
negotiations for the subject address, 1430 Trafalgar Road, Oakville, Ontario (the “Property”). It contains selected information
and has been prepared by Avison Young Commercial Real Estate (Ontario) Inc., Brokerage (“Avison”) primarily from information
obtained from Sheridan records with respect to the Property and from reports prepared by third parties.
This CIM does not purport to be all-inclusive or to contain all of the information that a prospective proponent may desire.
Neither the Vendor nor Avison, nor any of their officers, employees or agents make any representation or warranty, expressed
or implied, as to the accuracy or completeness of this CIM or any of its contents or as to any aspect of the Property and no legal
liability is assumed or is to be implied with respect thereto. All numerical information in this CIM is approximate only. Each
prospective proponent must rely on its own inspection and investigation in order to satisfy itself on any matter with respect
to the Property. Nothing herein shall form part of any proposal submitted.
By accepting a copy of this CIM, you agree that the CIM and its contents are confidential, that you will hold and treat it in strict
of confidence and that you will not use any of the information herein for any purpose except to determine whether you wish
to make a proposal for the Property.
Sheridan and Avison expressly reserves the right at their sole discretion to cease offering the Property, to reject any and all
proposals, expressions of interest or proposals to purchase and to terminate discussions with any party at any time, with or
without notice.
This CIM shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has
been no change in the business or affairs of the Property since the date of preparation of this CIM.
Conditions
The Property and all fixtures, chattels and equipment, if any, included therein, are to be considered on an “as is, where is” basis
and there is no representation or warranty, express or implied, as to title, description, condition, cost, size, merchantability,
fitness for purpose, quantity or quality thereof.
Any information related to the Property which has been, or will be, obtained from Sheridan or Avison or any other person by
a prospective proponent, is prepared and provided solely for the convenience of the prospective proponent and will not be
warranted to be accurate or complete and will not form part of the terms of a proposal or an agreement of purchase and sale.
Further information can be obtained by contacting the listing agents.
Confidential Investment Memorandum
Oakville, Ontario
Page 3
Executive Summary
Executive Summary
Introduction
Avison has been engaged by Sheridan to market the Property
otherwise described as the Sheridan Lands.
Background for Future Development
Sheridan’s mission is to deliver a premier, purposeful
educational experience in an environment renowned
for creativity and innovation. As such, in 2010, Sheridan
outlined a framework for an institution-wide sustainability
and energy initiative whose ambitious mandate would reenvision its energy future, set breakthrough performance
targets, and begin developing highly integrated energy and
climate curriculum for the College. Sheridan’s commitment
and forward looking approach to sustainability was
evident in 2012 as it became the first Ontario College to
have undertaken the Association for the Advancement of
Sustainability in Higher Education (AASHE) substantial rating
process.
Given this mission and commitment to becoming a role
model for sustainability, energy efficiency and climate
mitigation in Ontario and Canada, Sheridan has developed a
fully Integrated Energy Master Plan (IEMP), spanning all of its
campuses, including the Trafalgar Campus, and is supported
by the following world class framing goals:
• Energy Efficiency Gain (at least 50% by 2030 below 2005
baseline)
partnership as a significant competitive advantage which
will build property value.
New construction on Sheridan property will be LEED Gold
or better and will be supported by a strong network of
energy professionals to help integrate world- class energy
and climate design targets and operations. This approach
has already been integrated in the design of Sheridan’s
Hazel McCallion North Campus in Mississauga, Ontario. It is
Sheridan’s intention to extend heating and cooling services
to developable sites and has factored in campus energy and
investment planning, opening up many investment benefits
for potential investors, including the freeing up of usable
space, competitive energy costs and significantly reducing
environmental impacts of on-campus buildings.
Sheridan’s Requirements
As part of this RFP, Sheridan, when evaluating responses,
is looking for a creative solution to have up to 250,000 sf
constructed for its own use on the site. They can be used as
part of the revenue model for the College to enable Sheridan
to create long-term income. Please present any financial
model that might accommodate this when responding.
Sheridan requires a 600 - 800 seat Theatre/Auditorium to
accommodate the growing needs of the Bachelor of Applied
Arts Music Theatre Performance. This theatre facility will also
include the following ancillary spaces:
• A multi-use rehearsal hall/studio space
• Greenhouse gas emissions reduction (at least 60% by
2030)
• A fly tower for the main-stage
• Strong Internal Rate of Return on recommended
investments
• Orchestra pit
• Create a campus-wide energy culture
• Paint shop, carpentry shop, costume shop and prop shop
• Dressing rooms
• Stage management office
• Ensure energy supply reliability
• Administration office for production manager
• Become a platform for flexible new energy technologies
• Green Room / Actor’s lounge
• Create a ‘living laboratory’ for the development of
competitive energy and climate curricula
• Become a national and community Role Model
Guidelines for Future Development
It is Sheridan’s belief that new construction and development
partners will benefit from being a part of Sheridan’s overall
sustainability and energy philosophy and world-class energy
performance. Lower energy costs will mean better value for
tenants and lower overhead for property managers. Owners
who embrace Sheridan’s philosophy will see this new
• Box office
• Loading dock
The theatre will also accommodate students for graduation
purposes and act as a revenue generator as it could be leased
out by the College when not in use during the year.
There is a further need to build an Art Gallery with adjacent
art and display storage spaces.
As outlined on the master plan, Sheridan is interested in
creating additional onsite buildings to accommodate the
expanding student population in Oakville.
Confidential Investment Memorandum
Oakville, Ontario
Page 4
Executive Summary
Investment Highlights
High-traffic location; great public transit corridor
Property Highlights
Trafalgar Road is a high volume thoroughfare in
the Town of Oakville, and offers exceptional street
exposure and traffic flow. The area is well-served with
a GO Transit station located within minutes fromthe
subject property, which connects to Downtown
Toronto.
Trafalgar Road is currently served today with a high
level of bus transit, and in the future will be considered
for a Bus Rapid Transit (BRT) line, running on dedicated
lanes. The BRT is planned to serve Oakville and Milton,
connecting the two communities, and will eventually
link Oakville to Pickering, resulting in a 100 km BRT
system. The BRT is predicted to reduce traffic along
this major street, eliminating an inefficient overlap
of current bus services. (Further information on
transportation can be found on page 17).
Exceptional amenities and clientele base
The immediate area contains a regional shopping
mall; Oakville Place, which consists of several clothing
stores, book stores, furniture stores, restaurants and
more. GoodLife Fitness, Walmart Supercentre and the
New Oakville Hospital are also located within minutes
north of the subject property near the Dundas Street
East and Trafalgar Road intersection.
Total Acreage:
Current Campus
Development: 17.46, as seen on page 9 - 760,000 sf of developable land.
Home to over 9,000 students,
offering programs in Animation,
Arts and Design, Business,
Community and Liberal Studies
and Applied Computing, and
Engineering Studies. Sheridan
Campus also includes an athletic
facility, a
Student Centre,
library, cafeteria and other food
outlets
Year Established: 1967
Asking Price:
Unpriced
Submission Date: January 17th, 2013
Confidential Investment Memorandum
Oakville, Ontario
Page 5
Contact Us
For more information please contact the Avison Young Listing Team:
Listing Agents
Peter DeGuerre*
416.673.4004
[email protected]
Christopher Brown*
416.673.4008
[email protected]
Debt Capital Markets
Norman Arychuk**
416.673.4006
[email protected]
Licence No. 10637
David Scott**
416.673.4021
[email protected]
Licence No. 10637
* Sales Representative
**Mortgage Broker
Confidential Investment Memorandum
Oakville, Ontario
Page 6
Property Overview
The Property
Property Details
Description
• The subject property is located north of the QEW on the west
side of Trafalgar Road, south of Upper Middle Road East.
• Well positioned in relation to area amenities including major
commuter routes (such as QEW/403/407)
• Within close proximity to Oakville Place Shopping Centre,
Oakville Golf Club
• The Town of Oakville has a population of approximately
182,520 people
• Oakville is accessible via train, air, or public transit (for further
detailed information see page 17)
Site Description
Size: 17.46 acres
Zoning: Agricultural (A)
Property Highlights
MASSING POTENTIAL
Commercial:
8 Storeys
1,080,000 SF
Institutional:
3.5 Storeys
500,000 SF
Retail/Other:
At grade 2nd FL
100,000 SF
CAMPUS
Commercial:
7 Storeys
360,000 SF
Institutional:
Realty Taxes
Sheridan College currently does not pay taxes, however, based on what
the entity is that enters into a joint venture with Sheridan College, taxes
may apply.
3 Storeys
660,000 SF
Retail/Other:
2 Storeys, Street access
170,000 SF
Artist Rendering - Trafalgar Road
Confidential Investment Memorandum
Oakville, Ontario
Page 8
The Property
Confidential Investment Memorandum
Oakville, Ontario
Page 9
The Property
Site Plan
Confidential Investment Memorandum
Oakville, Ontario
Page 10
The Property
Fact Sheet
Owner:THE SHERIDAN COLLEGE INSTITUTE OF TECHNOLOGY AND ADVANCED LEARNING;
Municipal Address:1430 Trafalgar Road, Oakville Ontario
Size:17.46 acres (760,000 SF)
Legal Description:
T LT 13, CON 2 SDS, PTS 2 & 3 HR105 S&E PTS 1 TO 4 20R16680; PT LT 14, CON 2 TRAF SDS PTS
P
1 & 4, HR105; OAKVILLE. S/T 257911, H10050 & H10051. S/T EASE H803225 OVER PTS 2 & 3,
20R13239. S/T EASE HR59007 OVER PTS 3, 4 & 7, 20R13399.
PIN:
248770416
Asking Price:
Unpriced
> 760,000 SF
FOOTPRINT
Confidential Investment Memorandum
Oakville, Ontario
Page 11
The Property
Land Use Designation
Official Plan
The property has a current Land use designation of Institutional.
The permitted uses for Institutional are as follows:
Uses permitted within the Institutional designation may include educational facilities with residential accommodations,
colleges and universities, health care facilities and hospitals with ancillary uses, places of worship on sites greater than
2.5 hectares, government and cultural facilities, and residential accommodations associated with institutional uses
(Section 15.1.1).
Additionally, section 15.1.3 states: Institutional uses in residential areas shall be designed to ensure that they are
compatible with adjacent land uses and are of high quality design and conform to the urban design policies.
Confidential Investment Memorandum
Oakville, Ontario
Page 12
The Property
Zoning
There is currently an In-Zone Project underway (Oakville’s development of a new comprehensive Zoning By-Law). The target
adoption date is September 2013. Until the new Zoning By-Law is approved by Oakville’s Council, Zoning By-Law 1984-063,
Oakville’s main comprehensive Zoning By-Law, remains in effect and applies to the subject property.
The subject property is currently zoned “A” - Agricultural.
Permitted uses for the Agricultural designation are as follows:
• An Agricultural Use
• Public and private schools
• One detached dwelling
• A public hospital or private hospital or clinic licensed or
approved under a Statue of Ontario
• The office of a physician used for consulting and emergency
treatment only in the detached dwelling used by him as his • Provision of private-home day care
private residence
• The conduct of a trade or business, provided not more
• The office of a veterinary surgeon, and premises for the than 25% of the floor area is used for the purpose, no sign
treatment or boarding of animals
is displayed, no person outside members of the family
residing on the premises is employed, no goods are stored
• Parks, playgrounds, recreational areas and community centres on the premises and no shipping is done from them, and
there is no public office or visiting of the premises by
customers, clients or salesmen on business
• Churches and other places of worship, with or without church
halls used for functions conducted by church organizations
only
Confidential Investment Memorandum
Oakville, Ontario
Page 13
Location Overview
The Location
Confidential Investment Memorandum
Oakville, Ontario
Page 15
The Location
Location Overview
Confidential Investment Memorandum
Oakville, Ontario
Page 16
The Location
The Town of Oakville
At a Glance
Distance from 1430 Trafalgar | Town of Oakville
Total Population (approximate 2011)
Median age of population
1 km
3 km
5 km
Total
9,464
62,863
125,528
189,854
40.5
39.0
39.4
39.2
Employed Persons
5,780
36,058
70,996
106,668
Number of Households
3,577
21,573
43,180
65,973
$110,260
$132,218
$149,532
$143,449
Average Household Income
Dominant Building Type
Single-Detached Single-Detached Single-Detached Single-Detached
House
House
House
House
Approximate Travel Time* to:
Ground
Air
Montreal
6 hours
1.10 hours
Ottawa
5 hours
0.45 hours
Kingston
3 hours
N/A
New York City
8 hours
1.25 hours
Source: Statistics Canada
*Travel times are approximate
The Property is located on the west side of Trafalgar Road, just south of Upper Middle Road, in the uptown core of Oakville.
This area is a growth area in Oakville with mixed use developments.
The Town of Oakville is located within the Halton Region and is part of the Greater Toronto Area. The current Oakville
population is 182,520 people (which represents a 10.2% increase since the 2006 Census). Oakville is becoming increasingly
diverse and is host to several annual festivals such as the Jazz Festival which occurs every summer and includes performances
at a number of stages along Lakeshore Road East, Waterfront Festival, For the Love of the Arts Festival, Midnight Madness that
provides local stores the opportunity to showcase new products and sales, and much more.
There are several elementary and high schools in Oakville and are a mix of both private and public, with Oakville offering one
of the highest ratios of private schools to student population in the country.
Transportation
Local
Being several minutes away from a variety of public transit systems, the subject property is easily accessible by
bus, car or train.
Rail/Bus
Oakville GO Transit is located at 214 Cross Avenue, which is located approximately 2.7 km southeast from the
subject property. This station connects to Toronto’s downtown core at Union Station and the City of Hamilton to
the west.
Air
Toronto Pearson International Airport is approximately 36 km from the subject property.
Highway
Highways close to the property and which serve the area include Highway 407, commonly referred to as the
Express Toll Route (ETR). This highway is a privately operated 400-series highway and a toll way in Ontario.
Another highway within the immediate proximity to the subject property is the QEW which connects to
Highway403 and 401 and other 400 series highways.
Confidential Investment Memorandum
Oakville, Ontario
Page 17
Market & Economy
The Market & Economy
Market & Economic Fundamentals
Investment
Monitor
Investment Monitor
Greater
TorontoToronto Area
Mid-Year 2012
Capitalization Rates
Spread to 10-year Canada Bond Rate
Product Type
Q2-11
Q1-12
Q2-12
Q2-11 (bps)
Q1-12 (bps)
Q2-12 (bps)
Downtown AA Office
5.9%
5.5%
5.5%
281
338
378
Single Tenant Industrial
6.5%
6.3%
6.2%
341
418
448
Multi Tenant Industrial
6.7%
6.6%
6.4%
361
448
468
Tier I Regional Mall
5.6%
5.2%
5.2%
251
308
348
Multi
Residential(Suburbs)
5.9%
5.4%
5.1%
281
328
338
Investment Volume
Capitalization Rates
10.0%
$6,000
$5,666
9.5%
$5,000
9.0%
$ Volume (Millions)
Avg. Cap Rate
8.5%
8.0%
7.5%
7.0%
6.5%
6.0%
$4,487
$4,000
$3,000
$2,672
$1,737
$2,000
$1,000
$935
$882 $877
$671
$567
$790
5.5%
$366
$656
$0
5.0%
'00
'01
Downtown AA Office
'02
'03
'04
'05
'06
Single Tenant Industrial
'07
'08
'09
'10
Multi Tenant Industrial
Q111
Q211
Q311
Tier I Regional Mall
Q411
Q112
Office
Q212
Industrial
Retail
1H 2011
Multi Residential
Multi Res
Land
Total
1H 2012
Partnership. Performance.
Investment Monitor
Investment
Monitor
TorontoToronto
– Investment
Greater
Area - Volume
Investment Volume
Mid-Year 2012
$4,000
$9.5 Billion
$3,500
Millions
$3,000
$5.7 Billion
$7.4 Billion
$7.1 Billion
$2,500
$4.1 Billion
$2,000
$1,500
$1,000
$500
$0
Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q2 12
Office
Retail
Industrial
Multi-Res
ICI Land
Partnership. Performance.
Confidential Investment Memorandum
Oakville, Ontario
Page 19
The Market & Economy
Investment
Monitor
Investment Monitor
Greater
Toronto
Area - Investment
Volume
Toronto
– Investment
Volume by
Sectorby Sector
1H 2012
1H 2011
Multi-Res
$567
12%
Industrial,
$882,
20%
Retail,
$1,737
39%
Mid-Year 2012
Office,
$935,
21%
Land,
$366,
8%
Total $Volume: $4,487 (million)
Multi-Res,
$790 , 14%
Retail,
$671,
12%
Land,
$656, 12%
Industrial,
$877,
15%
Office,
$2,672 ,
47%
Total $Volume: $5,666 (million)
Partnership. Performance.
Confidential Investment Memorandum
Oakville, Ontario
Page 20
The Market & Economy
Developments
OFFICE
Recently Completed
• 3450 Superior Court, Oakville (Great Lakes Business Park Phase II) – 48,339 sf
• 3470 Superior Court, Oakville (Great Lakes Business Park Phase II) – 43,249 sf
• 1405 North Service Road East, Oakville (Joshua Creek Corporate Building C) – 31,606 sf
• 1425 North Service Road East, Oakville (Joshua Creek Corporate Building B) – 61,430 sf
•
• 1320 Cornwall Road, Oakville – 29,776 sf
• 1 Gateway Boulevard, Brampton – 50,631 sf
• 60 Gillingham Drive, Brampton – 63,400 sf
• 7125 Mississauga Road, Meadowvale – 126,000 sf
1465 North Service Road East, Oakville (Joshua Creek Corporate Building A) – 28,059 sf
Confirmed New Construction
• 5035 Spectrum Way, Airport Corporate Centre (Spectrum Square – Building 1) – 128,788 sf
• 175 Galaxy Boulevard, Airport East (Galaxy Airport Centre) – 80,950 sf
• 4900 Palladium Way, Burlington (Emery/Alton Corporate Centre) - 30,000 sf
• 4903 Thomas Alton Boulevard (Emery/Alton Corporate Centre) - 30,000 sf
• Longside Drive, Heartland (Longside Drive @ Derry/Hurontario) - 65,980 sf
• 7685 Hurontario Street, Heartland - 73,600 sf
• 6925 Century Avenue, Meadowvale (First Meadowvale Centre - Phase II) - 250,000 sf
• 1919 Minnesota Court, Meadowvale – 125,000 sf
• 7100 West Credit Avenue, Meadowvale - 95,868 sf
• 4080 Confederation Parkway, Mississauga City Centre (Parkside Village) - 60,000 sf
• 1565 North Service Road, Oakville (Siemens Canada Building) - 110,000 sf
• 354-364 Davis Road, Oakville - 175,000 sf
Future Development Site (currently under preleasing)
• 5400 Explorer Drive, Airport Corporate Centre – 330,000 sf
• 5135 Creekbank Road, Dixie and Eglinton – 250,000 sf
• 2380 Meadowvale Boulevard, Meadowvale (First Meadowvale Centre - Phase IV) – 250,000 sf
• 2727 Meadowpine Boulevard, Meadowvale (Gateway Meadowvale I) - 200,000 sf
• 2777 Meadowpine Boulevard, Meadowvale (Gateway Meadowvale II) - 200,000 sf
• Spectrum Way, Airport Corporate Centre (Spectrum Square – Building 2) – 188,000 sf
• Spectrum Way, Airport Corporate Centre (Spectrum Square – Building 3) - 188,000 sf
• 1395 North Service Road West, Oakville – 171,250 sf
• 1405 North Service Road West, Oakville - 171,250 sf
Confidential Investment Memorandum
Oakville, Ontario
Page 21
The Market & Economy
Developments Radius Map
Confidential Investment Memorandum
Oakville, Ontario
Page 22
Additional Information
Offering Guidelines
Offering Guidelines
Offering Process
• Proponents are advised that this property is available on an “as is/where is” basis.
• Deposits can be staged, although the initial deposit should be no less than $250,000.00 and the total deposit
upon firming should be no less than $500,000.00.
• Proposals / Offers should indicate the names of the ultimate beneficial purchasers and their respective interests.
• Proposals / Offers should also include terms and conditions of the due diligence period and the closing date.
• All development is subject to approval by the Board of Governors of Sheridan.
• The proponent shall be responsible for the payment of all brokerage fees upon successful completion.
• Interested parties should submit offers to:
Peter DeGuerre*
Vice President
T: 416.673.4004
E: [email protected]
18 York Street, Suite 400
Toronto, Ontario M5J 2T8
T: 416.955.0000 F: 416.955.0724
Christopher Brown
T: 416.673.4008
E: [email protected]
*Sales Representative
Submission Date
January 17th, 2013
Confidential Investment Memorandum
Oakville, Ontario
Page 24