Forest Gate buys Niagara Falls Mall | RENX
Forest Gate Financial Corp. acquired a shopping center in Niagara Falls as the newly formed investment firm begins to build a portfolio and execute its strategy of acquiring a diverse range of properties.
The Mount Carmel Center was purchased from a private investment group for $ 37 million. The 30-acre site at 3930 Montrose Rd. Is occupied by a mall with tenants who include Staple foods, The sleep factory, Tim Hortons, Swiss chalet and Harvey’s, among many other food, beverage and service retailers and suppliers.
“We really believe in the Niagara Falls market and think it’s a great opportunity for us,” Forest Gate Managing Director and Managing Partner Dan Marinovic told RENX. “We love the site because it is a very large property that we believe we can add value to.”
Forest Gate will manage the property, which is near a residential area and Mount Carmel Park. Niagara Falls has natural attractions, a strong tourism industry, and a manufacturing base.
The city will benefit from an improvement GO Transit This service, which Marinovic says will make it an attractive place for people looking to work remotely while looking for a more affordable and relaxed lifestyle than can be found in larger markets.
Forest Gate is looking for a variety of asset classes
While there are no immediate redevelopment plans, the Mount Carmel Center site is large enough to accommodate future multi-family and mixed-use development.
Forest Gate is in the process of establishing a vertical of purpose-built rental apartments and Marinovic said they have nearly 500 units under management or being acquired.
The company is looking to add at least 1,000 units per year over the next several years. It targets value-added opportunities in communities across southern Ontario, such as Niagara Falls, where there is access to public transit and pleasant environments for living and working from home.
Forest Gate is also on the lookout for lucrative industrial and commercial properties, as well as development and redevelopment opportunities.
The Vaughan-headquartered real estate private equity, private debt and advisory firm was launched in March by Marinovic and his partner and CFO Frank DelZotto to generate superior risk-adjusted returns on its own and in partnership with developers, builders, investors and capital providers.
Forest Gate can be nimble in its acquisitions and Marinovic is excited about the momentum the company has achieved in its first six months.
“We strongly believe in the Canadian real estate landscape, especially as things are starting to normalize and we are bringing immigration back to pre-pandemic levels,” Marinovic said. “We envision very significant growth over the next 12 months. “
The Forest Gate team
Marinovic was until recently Director of Development for Unlimited dream, where his responsibilities covered finance, development, construction and operation. Prior to joining Dream in 2013, he was Vice President of Finance for First gulf, the commercial real estate branch of Great Gulf, for seven years.
DelZotto was previously a partner at BDO Canada srl for 19 years.
Forest Gate has just hired Justin Hawkins, former Senior Director of Development and Planning at First Gulf, as Director of Development. Hawkins worked for RioCan REIT, Dream and SmartCentres REITs before that.
Vaughan-based home builder Treasure Hill Houses is a partner of Forest Gate. Forest Gate’s advisory board is made up of Marinovic, DelZotto, Treasure Hill President Nicholas Fidei and Treasure Hill CFO Mark Caruso.