Request for Expressions of Interest

Transcription

Request for Expressions of Interest
on a Redevelopment Opportunity
4759-4789 Yonge Street, Toronto, Ontario
Expressions of Interest are being sought by the owner, Sun Life
Assurance Company of Canada, for the opportunity to redevelop the
freehold interest of the 3.686 acre Willowdale Plaza Site located on the
prime south east corner of Yonge Street and Sheppard Avenue.
Contact :
Pierre Gagné, Broker
Tel:
(416) 955-1885
Email: [email protected]
www.gagnerealestate.ca
Marketing Support
Provided by:
Real Property
Solutions
P.G. GAGNÉ COMMERCIAL REAL ESTATE CORP., 220 Bay Street, 9th Floor Toronto, ON M5J 2W4*Tel :416-955-1885 Fax :416-862-2136*[email protected]
TABLE OF CONTENTS
Willowdale Plaza Site, Toronto
TABLE OF CONTENTS
SECTION 1
EXECUTIVE SUMMARY
SECTION 2
SUBMISSION PROCESS FOR EXPRESSIONS OF INTEREST
A. Objectives of Sun Life Assurance of Canada
B. Procedures
C. Limiting Conditions
SECTION 3
PROPERTY DESCRIPTION AND MARKET PROFILE
A. Site and Building
B. Neighbourhood and Service Road
C. Housing Market
• as per N. Barry Lyon Consultants
SECTION 4
ZONING AND OFFICIAL PLAN CONSIDERATIONS
• as per Goodman and Carr LLP
SECTION 5
ONE ARTISTIC VISION OF REDEVELOPMENT
• as per Julian Jacobs Architects
SECTION 6
EXPRESSIONS OF INTEREST DETAILS
Page 1
SECTION 1
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Opportunity
Sun Life is soliciting Expressions of Interest to own and redevelop the freehold interest of the
3.686 acre Willowdale Plaza Site. The site is currently leased to Rio Can REIT with a term to
expire September 30, 2007. Rio Can is collecting rental income from its tenants at the site.
Land rent is no longer payable to the land owner. The ownership of the Willowdale Plaza Site
offers the potential for redevelopment of the site subject to the usual re-zoning and site plan
agreement negotiation with the City of Toronto.
The Property (“The Willowdale Plaza Site”)
The Willowdale Plaza Site is located on the prime south east corner of Yonge Street and
Sheppard Avenue East at 4759-4789 Yonge Street in Toronto. The original site measures
approximately 3.785 acres. Expropriation from the City of Toronto has reduced the site to
3.686 acres for the purpose of density calculations and to 3.24 acres for physical
development. The existing building is approximately 51,165 square feet with full basement.
Zoning and Official Plan Status
The existing zoning on the property is C2 (Local Shopping Centre). Under the North York
Centre Secondary Plan the maximum density permitted on the site is 4.5 times the lot area for
mixed use.
The Secondary Plan and Section 37 of the Planning Act does permit various density incentives
and transfers which have permitted developers in the past to increase density above this
limit. Under the current official plan for the area (OPA 447) a mixed used designation, with no
residential uses, has been suggested.
Notices of appeal have been filed on behalf of Sun Life to argue the removal of the residential
use limitation under the OPA 447 Mixed Use designation at the site. A decision will be
rendered after review of a complete site specific Official Plan and Zoning Bylaw Amendment
application.
Procedures
The site is being offered on an unpriced proposal-call basis. Sun Life Assurance Company of
Canada prefers Expressions of Interest on a cash basis with a minimal conditional period. The
Expressions of Interest are due Wednesday March 9th, 2005 at 12:00 noon at the offices of
P.G. Gagné Commercial Real Estate Corp., 220 Bay Street, 9th Floor, Toronto, Ontario
M5J 2W4 to the attention of Pierre Gagné.
Contact
P.G. Gagné Commercial Real Estate Corp.
220 Bay Street, 9th Floor
Toronto, Ontario
M5J 2W4
Tel (416) 955-1885
Fax (416) 862-2136
Email [email protected]
Page 2
SECTION 2
Sun Life Assurance Company of Canada (Sun Life) has appointed P.G. Gagné Commercial Real
Estate Corp., (The Broker) as agent to market and advise on the sale of the Willowdale Plaza
Site located at 4759-4789 Yonge Street in Toronto.
This Information Memorandum contains information, which may be useful in preparing an
Expression of Intent with respect to the purchase of the Willowdale Plaza Site. Interested
Parties who would like additional information or who wish to arrange for an inspection of the
Willowdale Plaza Site should contact:
Toronto, Ontario
M5J 2W4
A.
Tel (416) 955-1885
Fax (416) 862-2136
Objectives of Sun Life Assurance Company of Canada
Sun Life is seeking to sell its Willowdale Plaza property located at 4759-4789 Yonge Street,
Toronto (the "Willowdale Plaza Site").
Accordingly, Sun Life has identified the following objectives and parameters that should be
addressed in all Expressions of Interest submitted by Interested Parties:
1. Sun Life will consider Expressions of Interest for the Willowdale Plaza Site on an “as is”
basis or on a conditional basis. Sun Life believes the highest and best use of the
Willowdale Plaza Site is a mixed use residential condominium apartment, retail and
office development which may not be consistent with the land uses permitted by the
existing Zoning By-Law and/or the Official Plan. Accordingly, Sun Life will entertain
Expressions of Interest that may contain a conditional period within which the chosen
Interested Party may satisfy itself with respect to approvals from various governmental
authorities. The chosen Interested Party will be responsible for all costs associated
with obtaining such approvals which include but are not limited to, architectural,
planning, traffic and if required, Ontario Municipal Board hearing costs and other
required studies.
2. Sun Life is an active investor in income producing properties for its own account and
would have interest in retaining an interest in any commercially viable investment
components to be developed at the Willowdale Plaza Site. Such opportunity should
be proposed by the Interested Parties for assessment by Sun Life within the Review
Process.
3. Sun Life has no interest in participating in condominium or hotel development
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SECTION 2
4. Sun Life wishes to be fully informed of the Interested Parties’ identity, financial ability,
track record, management team, professional team and financial partners.
5. Sun Life requires the sale to be completed as early as possible without negatively
affecting the ultimate sale price. As such, Sun Life will entertain Expressions of Interest
which may include part of the price on a firm basis, and part on a participatory basis
subject to additional governmental approvals, higher density and change in use.
6. Sun Life desires to be compensated for all density obtained and at values which are
reflective of the market when payment is received.
7. Sun Life desires an all cash transaction and prefers not to consider vendor take back
financing.
B.
Procedures
1.
Pre-Offer Binder
The pre-offer binder is available to those Interested Parties who intend to submit an
Expression of Interest. The pre-offer binder will contain, among other documentation,
consultants' reports, selected documentation registered on title, survey, planning
documentation and Notices of Appeal.
Interested Parties will be required to execute a Non-Disclosure Agreement before receiving
the Pre-Offer Binder.
2.
Expressions of Interest
Interested Parties are expected to provide sufficient information in their Expressions of
Interest to enable Sun Life and the Broker to evaluate adequately the Interested Parties’
experience and business plan.
The Expression of Interest shall include the following:
(a)
An acknowledgment that, if successful and upon execution of a purchase and sale, the
Interested Party is prepared to offer a deposit in the amount of one million dollars
($1,000,000) by way of cheque certified by or bank draft of a major Canadian financial
institution payable to Aird & Berlis, LLP in trust, Sun Life’s solicitors.
(b)
Outline detailed business terms including:
•
•
•
•
Total Consideration
Cash on Closing
Participatory density bonus formula, if any.
Formula for participation by Sun Life in commercially viable entities at the site.
Page 4
SECTION 2
•
•
Due diligence period, if any.
Closing date
(c)
A description of the proposed development of the Willowdale Plaza Site and the
estimated timing for commencement and completion.
(d)
A corporate profile of the Interested Parties together with the following:
(e)
(i)
Management team and relevant experience.
(ii)
Interested Parties relevant expertise and track record in the North York District
and other localities.
(iii)
Team advisors and professional and financial partners, contracted or potential.
(iv)
Expected governmental approval process.
(v)
Action plan for due diligence, if any.
Evidence of Interested Parties financial ability to complete the transaction and
proposed redevelopment of the Willowdale Plaza Site.
Sun Life may, but shall not be obligated, of its sole option refuse to consider any Expression of
Interest that fails to comply with the foregoing or which does not include all the requirements
listed above.
3.
Submission Deadline
All Expressions of Interest are to be submitted in triplicate by twelve noon (12:00pm) on
March 9th, 2005 to:
Toronto, Ontario
M5J 2W4
4.
Tel (416) 955-1885
Fax (416) 862-2136
Procedures Following Submission
(a)
Analysis and Review
Expressions of Interest will be evaluated on a number of factors including, but
not limited to, the total consideration offered, the method of payment of that
consideration, the Interested Parties’ experienced ability to complete the
transaction and the timeliness and conditions of closing.
More specifically and in addition to the proposed financial, business and legal
terms, the Expressions of Interest will be evaluated according to the following:
Page 5
SECTION 2
(i)
Interested Party’s management team and relevant personal expertise
with a description of projects undertaken of a similar nature and
magnitude.
(ii)
Interested Party’s relevant expertise and track record in the North York
District and other localities. The Interested Party should indicate its
responsibility in those projects whether undertaken directly or in
partnership.
(iii)
Contracted or potential team of advisors, professionals and financial
partners. More specifically, the Interested Party should identify key
firms, principals and respective roles of the project team including
proposal project managers, planners, architects, engineering
consultants, legal counsel, market consultants, traffic and other
specialty consultants.
(iv)
Development vision for the Willowdale Plaza Site including information
regarding the intended uses of the Willowdale Plaza Site and proposed
densities.
(v)
Expected governmental approval process including the details of the
Interested Party approval to any required municipal/regional or other
agency, and/or other governmental approvals and the estimated
timing.
(vi)
Action plan for due diligence, if any including scope of work on land
and buildings; review of records and preliminary discussion with
governmental authorities.
(vii)
Financial ability to undertake a development of this magnitude. Short
listed Interested Parties will be required to provide additional detailed
and confidential evidence directly to Sun Life.
Sun Life and the Broker intend to analyse all Expressions of Interest received
according to the foregoing guidelines to determine their acceptability to Sun
Life. Sun Life may engage independent third party advisors to assist in the
analysis of the Expressions of Interest. During this review period the Broker and
Sun Life may request additional information, data and clarification from any of
the Interested Parties.
(b)
Further Negotiations
Sun Life may enter into discussions with any Interested Party or parties and
may request clarification of their expressions of interest, further information or
that a further submission be made without giving all parties who submitted an
expression of interest the same or any such further opportunity. Sun Life and
the Broker intend to limit the number of parties with whom Sun Life may enter
into further discussions.
Page 6
SECTION 2
(c)
Unaccepted Expressions of Interest
Sun Life reserves the right not to consider any of the submitted Expressions of
Interest, even if subsequent negotiations have been commenced.
Sun Life and the Broker will not be obligated to state any reason for declining
further consideration of any Expressions of Interest at any time or be required
to pay any compensation for preparation and submission of any Expression of
Interest or in connection with any due diligence with respect thereto. Sun Life
is under no obligation to respond to or to accept any Expression of Interest.
(d)
Formal Offers to Purchase
Following Sun Life’s review of the Expressions of Interest, Sun Life may, but
shall not be required to:
(i)
invite one or more interested parties (or any other party whether or not
they submitted Expressions of Interest) to submit an offer to purchase
the Willowdale Plaza Site at the best price and on terms as they are
prepared to make which may be different than contained in their
Expressions of Interest, if any. The form of the offer to purchase will be
prepared by Sun Life which may include specifics of the structure of the
calculation and payment of the purchase price and any options
required by Sun Life and such other matters as Sun Life may determine.
The offer to purchase must be open for acceptance for at least TEN (10)
business days and must be accompanied by an initial deposit of one
million dollars ($1,000,000) payable to Aird and Berlis LLP in trust. Sun
Life will not be obligated to accept any such offers that are submitted;
(ii) negotiate the sale of the Willowdale Plaza Site with any party (whether
or not they submitted an expression of interest) on such terms and
conditions as Sun Life may determine;
(iii) withdraw the Willowdale Property from the market;
(iv) ask for further Expressions of Interest on such terms as Sun Life may
determine, or
(v) proceed with any combination of the forgoing.
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SECTION 2
5.
Conditional Period
Sun Life expects Interested Parties to conduct due diligence and investigations to the extent
reasonably possible prior to submitting their Expressions of Interest. Accordingly, Sun Life
may give preference to a shorter due diligence period.
6.
Building Inspection
The building and facilities at the Willowdale Plaza Site will be open for inspection Wednesday
March 2, 2005 from 8am to 12pm. Those wishing to tour the building must make
arrangements with Pierre Gagné. Those who have not made such arrangements and simply
present themselves at the property may not be toured as staff will be required to escort those
touring the property.
7.
Full Disclosure
Interested Parties will have to disclose their identity and the identity of actual and/or
potential partners to the full satisfaction of Sun Life.
C.
Limiting Conditions
1.
Limitations and Disclaimer
All information and material provided by Sun Life or the Broker, or in any way obtained by an
Interested Party, written or oral, including without limitation the descriptions, information,
reports and photographs in this document, in the Pre-Offer Binder, or otherwise, is only for
the information of Interested Parties, to assist them in deciding whether they wish to express
an interest in acquiring the Willowdale Plaza Site. This material and information does not
purport to be all-inclusive or to contain everything that an interested party might wish or
require. The sale of the Willowdale Plaza Site will be on a "purchaser's due diligence" basis.
Interested parties are responsible for satisfying themselves, through whatever verification or
due-diligence process they determine is necessary, as to the accuracy and completeness of
any information and as to the potential of the Willowdale Plaza Site. Neither Sun Life, nor the
Broker make any representation or warranty, whether express or implied as to the accuracy or
completeness of any such material, information, reports or statements and expressly disclaim
any and all liability for any errors or omissions in all information, material, reports or any other
written or oral communication obtained by, given to or made available to any interested
party. No express or implied contract of any kind whatsoever by or on behalf of Sun Life shall
arise or be implied from anything contained in this Submission Process or submission of an
Expression of Interest. It being understood and agreed that no contract between Sun Life and
an Interested Party shall arise or exist by reason of submitting an Expression of Interest
hereunder or any discussions or negotiations arising here from or therefrom.
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SECTION 2
Sun Life and the Broker reserve the right to alter the process and/or timing described in this
Information Memorandum at their discretion without notice. Sun Life reserves the right to
remove the sale of the Willowdale Plaza Site from the market at its discretion or to negotiate
and affect a sale to, or a participatory arrangement with, any party, whether or not such party
participated in the process detailed herein.
All interested parties are assumed to have read and to be familiar with this Submission
Process.
2.
Agency Disclosure and Co-operating Broker Fee
It is understood that the Broker acts as the listing broker for Sun Life, owes a fiduciary duty to
Sun Life and will be compensated by Sun Life. Unless advised otherwise, it shall be
conclusively deemed that any co-operating broker on the transaction will act as agent of the
Purchaser. Co-operating brokers will be required to register their clients and will receive a
commission equal to 0.5% of the sale price plus applicable GST on successful closing of the
sale and receipt of all sale proceeds by Sun Life with the said registered client and upon the
Broker having been paid in full by Sun Life. The Broker and Sun Life shall have no obligation
whatsoever to any co-operating broker unless provided for in writing.
The Broker has no authority to make representations on behalf of Sun Life, or execute
agreements, or commitments, or to bind Sun Life in any respect whatsoever.
Toronto, Ontario
M5J 2W4
Tel (416) 955-1885
Fax (416) 862-2136
Page 9
SECTION 3
A.
Site and Building
The Willowdale Plaza Site is located on the prime south east corner of Yonge Street and
Sheppard Avenue East. The municipal address of the existing building is 4759-4789 Yonge
Street, Toronto.
The site is nearly rectangular in shape, with frontage of approximately 490 feet on the east
side of Yonge Street and approximately 200 feet on the south side of Sheppard Avenue East.
Total area of the site is 160,506 square feet, or 3.686 acres, with portions of the site being
subject to strata-fee (below-grade) and permanent easement takings by the City of Toronto.
The remaining site available for physical development is 140,937 square feet, or 3.24 acres.
Density calculations for redevelopment purposes will be based on the total area of the lands,
being 3.686 acres.
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SECTION 3
Page 11
SECTION 3
Easements and/or Right of Way
The City of Toronto has an easement over 15,608 square feet plus expropriated another
13,369 square feet of strata fee interest (defined as below ground for subway) in 1998. The
property also has a number of easements and rights-of-ways, some of which include the
following: the property has the benefit of a right of way, in common with all others, over a 20
foot strip of land in the north-west corner of the site. The strip is adjacent to the rear of the
small corner parcel excluded from the subject property, and previously improved with a bank
now demolished and expropriated by the city. The property also has a right-of-way, in
common with all others, over a 66 foot strip of land, which forms a northerly extension of
Bales Avenue, this right-of-way essentially provides rear access onto the southeast corner of
the subject lands. The property is also subject to an easement for light and air, over the
easterly 20 feet and northerly 94.21 feet.
The property is currently improved with a single-storey retail plaza of approximately 51,165
square feet of leaseable ground floor area plus full basements. The building is fully leased to
nine sub-tenants, as follows:
Dominion Save-A-Centre
National Sports
Sports Medicine Clinic
Blockbuster Video
Taylor’s Cleaners
Dr. Bernstein Diet Clinic
Dental office
Stratique Hair Salon
Cantel Networks
Total as per Rio Can
27,215
9,480
3,872
2,993
2,088
1,749
1,400
1,258
n/a
50,055
square
square
square
square
square
square
square
square
feet
feet
feet
feet
feet
feet
feet
feet
square feet
The term of all leases terminates on September 30 2007. Rental income is not available.
The fee simple interest is leased to RioCan Reit, an income trust and premier operator and
developer of retail centres across Canada. The original fifty year lease matures September 30,
2007 and all future land rental payments have been abated through an expropriation award
received in March 1999.
The total annual net rent during the most recent leased period was $28,790. Expropriation
proceeds were $561,543.
Municipal Taxes
Roll Number:
Current Valuation Assessment:
Realty Portion :
Commercial
Commercial
Shopping Centre
1908091150003000000
$10,855,000
$1,760,000 (taxable at the full rate)
$6,344,000 (taxable at the excess land rate)
$2,751,000 (taxable at the full rate)
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SECTION 3
Looking east across National Sports at Minto’s 34-storey,
309-unit residential condominium building
Ring Road negotiation privilege. Also looking at Menkes’
Cosmo residential project currently under construction
Office building component could be located at the
Yonge Street subway entrance at south end of the Site.
Emergency Yonge Street subway exit located at north
end of site.
Page 13
SECTION 3
B.
Neighbourhood and Service Road
With its strategic location at the Yonge and Sheppard intersection, the Willowdale Plaza Site is
situated at the main gateway to North York City Centre. Over the past decade, North York
City Centre has developed into a distinctive, vibrant and cosmopolitan community in its own
right, with a comprehensive mix of employment, commercial retail, entertainment and
residential uses. This area is a highly desirable location for prospective home owners, offering
all the amenities of a downtown or city centre node, with the transportation accessibility of
the suburbs.
Retail Amenities and Services – There is a comprehensive array of shopping and services in
the local area. Yonge Street is home to an eclectic mix of independent shops, chain stores
and specialty ethnic retailers. For higher order goods, residents have convenient access to a
number of shopping malls in the community. The Sheppard Centre office-retail complex is
located at the northeast corner of Yonge and Sheppard, across from the Willowdale Plaza Site,
and features 75 retailers, including a Pharma Plus drug store and a health club. Further north,
at Empress Avenue and Yonge, the Empress Walk retail-entertainment complex contains
approximately 30 stores, including a Loblaws supermarket, a LCBO liquor store and Future
Shop electronics store.
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SECTION 3
Residents may also choose to travel west to the Bayview Village Shopping Centre at Bayview
and Sheppard. This mall offers a more upscale retail environment and contains over 100
shops and services, including Loblaws, Chapters, a flagship LCBO outlet, Restoration
Hardware and numerous designer fashion boutiques such as Bianca Nygard, Brian Bailey and
Sunny Choi. It also hosts a library, several bank branches, dry cleaners, and medical offices for
doctors, dentists and other health specialists.
Entertainment, Dining and Cultural Facilities – A wide variety of restaurants, fast food
establishments, cafes and bars catering to every budget and taste are located along Yonge
Street. There are a number of movie theatres in the area, include the Sheppard Centre
Grande cinemas (Cineplex Odeon), the SilverCity Empress Walk, and Atlantis Alliance Theatres
at Bayview Village.
The Toronto Centre for the Performing Arts at North York Boulevard and Yonge Street is the
cultural hub for North York City Centre. It houses three different performance spaces of
varying sizes, including the Studio Theatre (200 seats), George Weston Recital Hall (1,036
seats), the Main Stage Theatre (1,727 seats). Over the years, the Centre has played host to a
wide range of events, from musical and theatre productions, to concerts and community
events. In particular, the George Weston Recital Hall has an annual concert season and
regularly features performance by internationally renowned singers and musicians.
Community Infrastructure – The Willowdale Plaza Site flanks a well established
neighbourhood, which offers a full range of community infrastructure and services, including
schools, parks, community centres and libraries. Major community facilities in close proximity
to the property include Claude Watson School for the Arts, Cameron Elementary School,
Avondale Elementary and Secondary Alternative School, Avondale Public School, Glendora
Park (including public tennis courts), the North York YMCA, and Earl Bales Park (including
downhill ski slopes).
A key focal point for the North York City Centre community is Mel Lastman Square, which is
located just off Yonge Street, in front of the North York Civic Centre. The square features a
fountain and pond, a bandshell, bench seating and landscaping, for a pleasant resting place
that is popular with local office workers and pedestrians. It also regularly hosts a variety of
community events and activities, including concerts, a farmer’s market, cultural festivals and
Canada Day celebrations during the summer months, as well as ice skating and Winterfest
during the winter.
Public Transit – The site provides direct access to the entrance to the Yonge-Sheppard
subway station located at the south end of the site, which provides direct access to the
downtown core in less than 30 minutes via the Yonge-University subway line. The Sheppard
subway line is easily accessed through the Sheppard Centre and runs east from Yonge as far
as Fairview Mall at Highway 404. www.ttc.ca
Page 15
SECTION 3
Major Highways and Roads – The site
provides convenient access to other parts of
the City of Toronto and to the suburbs.
Yonge Street, Sheppard Avenue and
Bayview Avenue are major arterial roads,
while Highway 401 is less than a 5 minute
drive to the south.
Service Road
The reurbanization of North York Centre is predicated on specific policy objectives and local
civic improvements. One of the overriding principles considered critical to the overall plan, is
the introduction of transportation improvements in the form of public transit infrastructure
and local road widenings and extensions.
The North York Centre Secondary Plan identifies the preferred location of a collector road
system (service road) on either side of Yonge Street, from Finch Avenue in the north, to below
Sheppard Avenue in the south. The north-south alignments are roughly along the existing
rights-of-way for Beecroft Road on the west and Doris Avenue on the east.
South of Sheppard Avenue, the transportation plan foresees the ring road crossing Yonge
Street through part of the southerly extremes of the Willowdale Plaza Site. The dedication of
the necessary property (matching a proportionate acquisition from Menkes immediately to
the south) will be required when the purchaser applies for Site Plan Approval pursuant to
Section 41 of the Planning Act.
The policy objectives for the service road system, as well as the proximity of the Willowdale
Plaza property of the southeast section of the system, is a positive site characteristic. The
system as a whole will help distribute traffic in a manner that reduces the possibility of traffic
congestion throughout North York Centre. Prospective tenants and purchasers will therefore
know that transportation alternatives, public or private, will operate as efficiently as possible
and at all times of the day and night. At the micro level, the extension of Avondale Road to
Yonge Street will provide excellent access to the site for both residents and retailers.
Page 16
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Page 17
SECTION 3
C.
Housing Market
Overview of the Condominium Apartment Market
Greater Toronto Area
Over the past three decades, condominium apartments have evolved from a niche market
housing form to become a widely accepted housing option of choice in the Toronto
marketplace. The new condominium apartment market in the GTA has been performing
especially well during the past few years. Following a record high of 15,408 sales in 2002, the
market saw activity decrease by 23% in 2003, to 11,871 sales. This was due in large part to the
exit of investors from the marketplace in response to weakening rental market conditions.
However, the new condominium sector rebounded strongly in 2004, with 13,750 sales – a
16% increase over the previous year and the second best annual performance of all time.
The current volume of unsold condominium inventory is down 9%, from a 14,370 units in
December 2003 to 13,008 units in December 2004. The increase in sales volumes and
corresponding reduction of inventory is attributable to developers who are offering generous
incentives in order to attract buyers. Regardless, price growth with new condominium values
have raised by 4%, from $292 psf in December 2003 to $304 psf in December 2004.
The low interest rate environment, solid job growth prospects and positive economic outlook
for the GTA. The underlying level of demand for condominium apartment product is
expected to remain fairly stable over the short to medium term. In particular, projects located
in expanding 905 suburbs and infill developments in established communities should do well
in the current market climate. All that is cause in part by N. Barry Lyon Consultants Limited
anticipates a healthy total sales volume of 10,500 to 11,500 new condominium units.
The North Yonge Corridor Submarket
Willowdale Plaza is located in the southeast quadrant of Yonge Street and Sheppard Avenue,
at the junction of two of the most prominent condominium apartment submarkets in the GTA
– the North Yonge Corridor and the Sheppard Corridor.
The North Yonge Corridor refers to the 2.5 km stretch of Yonge Street between Highway 401
and Finch Avenue. Over the past decade, this area has emerged as one of the most active
submarkets for new condominium apartment development in the GTA. Since 1994 it has
accounted for over 60% of all new project openings and sales in the former City of North York,
and has achieved an average annual absorption rate of between 900 and 1,000 sales per year.
The table on the following page provides sales, pricing and unit size data for new
condominium apartment projects in the North Yonge Corridor. This is one of the most
Page 18
SECTION 3
competitive and vibrant submarkets in the GTA, with 21 projects being actively marketed as
of December 31st, 2004. The combined inventory of the area is 5,814 units, of which 4,688
units or 81% are sold. The current average index value for new condominium product in this
submarket is $303 psf.
Investors – especially Asian investors, have historically played a significant role in the success
of the North Yonge Corridor condominium submarket. These buyers have been attracted to
this area because of its convenient access to subway, shopping, office, restaurants and
recreational amenities, as well as the high rental rates. The participation of investors in this
submarket has allowed many new condominium projects to generate large sales volumes
and minimize the time required to achieve pre-sales targets. The ratio of investor to users has
decreased from 30+% in 1995 to 20% in 2003 and 2004 (CMHC). The user market on the other
hand has captured the rising volume of sales. Investors in the GTA will certainly resume
previous acquisition levels when the rental market stabilizes again.
Page 19
SECTION 3
NEIGHBOURHOOD AND MARKET PROFILE
Active Condominium Projects in the North Yonge Corridor Submarket
As of December 31st, 2004
Open
Total
Project Name
Status*
Date
Units
Cosmo (Menkes)
Jun-02
284
U/C
Cosmo II (Menkes)
Jan-03
299
U/C
Dia (TAS Design Build)
Apr-04
160
Pre
Elite (Evergreen)
Sep-02
75
U/C
Grand Triomphe (Tridel)
May-02
397
U/C
Marquis at Northtown (Tridel)
Nov-01
120
Occ
Meridian (Tridel)
Aug-03
406
Pre
Monet (Great Lands)
Apr-02
308
Occ
One Avondale (Shane Baghai)
Oct-03
96
Pre
Pied a Terre Avondale (Shane Baghai)
Feb-04
83
U/C
Platinum Towers (Conservatory Group)
Feb-02
342
U/C
Platinum XO (Conservatory Group)
Mar-04
341
Pre
Princess Place IV (Pemberton Group)
Oct-01
288
Occ
Pulse (Pemberton Group)
Sep-04
250
Pre
Radiance at Minto Gardens (Minto)
Sep-04
309
Occ
Skymark Centre at Avondale (Tridel)
Apr-01
333
Occ
Skymark Centre at Avondale II (Tridel)
Feb-02
381
Occ
Sonata (Ghods Builders)
May-99
303
Occ
The Continental (Empire Communities)
Jul-03
272
Pre
Ultima (Menkes)
Mar-02
384
U/C
Ultima II (Menkes)
Apr-02
383
U/C
Total/Average (21 Projects)
5,814
*Pre = Pre-Construction, U/C = Under Construction, Occ = Occupied
Source: Realnet Canada Inc. & N. Barry Lyon Consultants Limited.
Unit Sizes
488 - 942
510 - 940
490 - 2,135
543 - 904
500 - 1,628
1,006 - 1,550
525 - 1,075
509 - 902
815 - 890
375
586 - 1,570
586 - 1,585
520 - 800
530 - 950
395 - 1,105
553 - 3,245
575 - 2,350
490 - 1,170
580 - 3,435
505 - 1,760
505 - 1,760
375 - 3,435
Unit
Prices
($000)
$147 - $285
$147 - $296
$152 - $536
$160 - $259
$140 - $640
$255 - $444
$176 - $334
$175 - $299
$278 - $334
$129 - $141
$160 - $473
160 - $482
$120 - $230
$161 - $276
$144 - $309
$153 - $1,402
$165 - $542
$150 - $384
$174 - 1,000
$147 - $571
$147 - $561
$120 - $1,402
Sold
Units
223
203
129
43
370
118
250
300
73
79
314
143
279
104
211
313
362
289
185
338
362
4,688
% Sold
79%
68%
81%
57%
93%
98%
62%
97%
76%
95%
92%
42%
97%
42%
68%
94%
95%
95%
68%
88%
95%
81%
Unsold
Units
61
96
31
32
27
2
156
8
23
4
28
198
9
146
98
20
19
14
87
46
21
1,126
Average
$PSF
$309
$301
$303
$286
$306
$270
$316
$282
$353
$364
$300
$293
$282
$292
$288
$355
$331
$253
$307
$318
$314
$303
Page 20
SECTION 3
Aside from investors, the North Yonge corridor has attracted an increasingly diverse buyer
profile, including younger, first-time buyers and empty nesters. Purchasers come from a
variety of ethnic backgrounds; Asian households for example constitute a dominant segment
of the market.
First-time buyers are typically 25 to 40 years in age, and either single or coupled with children.
Some grew up in the neighbourhoods surrounding the North York City Centre, or are moving
from suburban areas, particularly north of Toronto. These purchasers work in downtown
Toronto, in North York or in the northern part of the GTA, so accessibility to the subway or
Highway 401 is an important consideration. Due to the price-sensitive nature of first-time
buyers (and investors), developers in the North Yonge Corridor submarket have offered
increasingly smaller-sized units in recent years, as a means of maintaining attractive endselling prices, typically under the $200,000 threshold, even as construction costs and prices
have increased.
Empty nester buyers are typically are trading down from large homes in the communities
around the Yonge-Sheppard-Finch corridor. They are looking for the low-maintenance and
carefree lifestyle of condominium housing, yet wish to remain in the same neighbourhood
due to work, social and/or family connections.
The Sheppard Corridor Submarket
The Sheppard Corridor is one of the newer condominium submarkets in the GTA, having
really only emerged as a concentrated node for high-rise residential development during the
past five years. The key factor behind the rising level of activity in this area has been the
opening of the new Sheppard subway line, which has acted as a lightning rod for
development activity of all forms along Sheppard Avenue East.
Table 2
Active Condominium Projects in the Sheppard Corridor Submarket
As of December 31st, 2004
Project Name
Bayview
Mansions
(Times Group Corp.)
Bayview Mansions II
(Times Group Corp)
Claridges - Amica at
Bayview (Daniels)
Empire at NY Towers
(Daniels)
Rockefeller on Bayview
(Daniels)
Open
Date
Total
Units
Status
Unit Sizes
Unit Prices
Sold
Units
Sold %
Unsold
Units
Average
$PSF
Nov-01
135
Occ
578 - 1,627
$157 - $480
132
98%
3
$299
Sep-02
116
Occ
419 - 1,385
$123 - $470
101
87%
15
$309
Jun-04
115
Pre
706 - 1,365
$232 - $459
71
62%
44
$331
Sep-02
403
U/C
511 - 1,450
$186 - $528
396
98%
7
$325
Jun-03
231
U/C
529 - 1,189
$175 - $445
198
86%
33
$335
419 - 1,627
$123
$528
898
90%
102
$328
Total/Average (5 Projects)
1,000
-
*Pre = Pre-Construction, U/C = Under Construction, Occ = Occupied
Source: Realnet Canada Inc. & N. Barry Lyon Consultants Limited.
Page 21
SECTION 3
To date, new condominium development in the Sheppard Corridor has been focused around
Bayview Avenue. Since 1999, nine condominium apartment projects containing over 2,000
units have been successfully marketed in this area. At the same time, pricing for new
condominium units have risen over 37%, from $240 psf to $328 psf. The table above lists
active condominium projects in this submarket as of the end of December 2004. There are
presently five sites on the market, with a combined inventory of 1,000 units, of which 90% are
already sold.
Similar to the North Yonge Corridor, the purchaser profile for condominium apartment
product in the Sheppard Corridor submarket is comprised of investors, younger first-time
buyers and empty nesters. However, this area is experiencing stronger interest from older
empty nester households – especially those who are downsizing from single family homes in
the Bayview Village community.
Key Comparables to the Willowdale Plaza Site
In terms of location, the two most comparable condominium apartment projects to the
Willowdale Plaza Site are Cosmo to the south and Radiance at Minto Gardens immediately to
the east. Each of these developments is described in further detail below.
South of the Willowdale Plaza Site, a new condominium apartment community known as
Cosmo is currently under construction by Menkes. The project consists of two 23-storey
towers containing a total of 583 units. Phase I (284 units) was launched in June 2002 and is
79% sold, while Phase II (299 units) was launched in January 2003 and is 68% sold. Both
towers have been positioned as “small suite” buildings with relatively small unit sizes and
correspondingly low end prices, in order to appeal to price-sensitive first-time buyers as well
as investors. Unit sizes range from 488 to 942 square feet, with end prices from $147,490 to
$296,490. There are also 6 townhouse units in the project that were priced at $449,900 for
2,100 square feet. In terms of index pricing, remaining units are priced at $309 psf in Phase I
and $301 psf in Phase II. Both buildings are slated to be completed by the end of this year,
with initial occupancies commencing in November for Phase I and in December for Phase II.
To the east of the Willowdale Plaza Site, MintoUrban Communities is currently marketing a
new condominium project as well. In 2002, Minto began construction on a 34-storey, 309unit tower at this location that was intended to be a rental building. However, due to the
recent weakening in rental market conditions, the firm decided to sell the project as a
condominium instead. The project was launched in September 2004 as Radiance at Minto
Gardens and is now 68% sold. Buyers, including first-time buyers, move-up purchasers and
investors, have been attracted to the project because its convenient location, as well as its
ability to provide quick occupancy, as the first move-ins began in October 2004. Units range
in size from 395 sf to 1,105 sf, with end prices from $143,900 to $308,900. The average index
value was $288 psf at the time of launch and is now $273 psf for the remaining available
product. These are somewhat lower than expected values for new condominium apartment
product, but it should be noted that these numbers do not include parking and also reflect
the lower quality of suite finishes and features in the project, which was built to rental (and
not condominium) standards.
Page 22
SECTION 4
AS PER GOODMAN AND CARR LLP
Page 23
SECTION 4
AS PER GOODMAN AND CARR LLP
Page 24
SECTION 5
ONE ARTISITIC VISION OF REDEVELOPMENT
Page 25
SECTION 5
Page 26
SECTION 5
Page 27
SECTION 6
EXPRESSION OF INTEREST DETAILS
EXPRESSION OF INTEREST DETAILS
Owner:
Sun Life Assurance Company of Canada
Civic Address:
4759-4789 Yonge Street, Toronto, Ontario M2N 5M5
Note: Anything being sent to Sun Life with respect to the possible sale of the Willowdale
Plaza Site should be sent to the following address:
Sun Life Assurance Company of Canada
c/o P.G. Gagné Commercial Real Estate Corp.
Toronto, ON M5J 2W4
Legal Description:
PIN 10104-0777(LT) – Part Block A, Plan 2090, Township of York as ins NY265943, except Parts
1,5,8,9,12,15 & 16 on Expropriation Plan 12151 and except Parts 1&3 on Plan 64R-6830 and
except Part 2 on Expropriation Plan 8815.
Lot Size:
The original site measures approximately 3.785 acres. Expropriation by the City of Toronto
has reduced the site to 3.686 acres for the purpose of density calculations and to 3.24 acres
for physical development.
Financing:
Treat as clear.
Asking Price:
Interested parties are asked to submit their best overall consideration.
For Further Information please contact:
Toronto, Ontario
M5J 2W4
Tel (416) 955-1885
Fax (416) 862-2136
Page 28

Request for Expressions of Interest

Transcription

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