Marlin Spring Replaces Boardwalk in RioCan JV Development | RENX
RioCan REIT (REI-A-T) has owned the property at the southeast corner of Hurontario Street and Bristol Road East for approximately 20 years. Retail tenants include Fit4Less, Values Village, Mcdonalds and a variety of small convenience stores, food services and stores.
A fire in 2017 destroyed approximately 15,000 square feet of retail and commercial space, including a bank branch and restaurants.
“The timing of a fire is never a good time,” said John Ballantyne of RioCan, who was recently promoted to chief operating officer. “However, we knew the LRT was coming along Hurontario Street and as we developed our RioCan Living banner, we thought it was a great site to install a multi-family residential tower and keep the rest of our business from. detail around it. .
“We could build a phase and see how it goes, then continue with the rest of the site if we think it’s the right thing to do. “
Marlin Spring acquires Boardwalk REIT share
RioCan and Boardwalk REIT were originally partners in the project, but as work on its design progressed it was decided that it was more suitable for a condominium than a purpose-built rental apartment.
“Boardwalk is a huge rental owner, especially in Calgary, and the decision on their side was that they preferred to invest their capital in rental projects rather than condominium projects,” Ballantyne said. “So it was a pretty natural change and they did the deal directly with Marlin Spring.”
This transaction, which made RioCan and Marlin Spring 50-50 partners and co-developers, closed on November 26. Other details of the transaction were not disclosed.
“We’ve known the RioCan and Boardwalk team for quite some time, and when we saw the opportunity, we were very keen to get involved,” Marlin Spring President Ashi Mathur told RENX in a brief. separate interview.
“They had determined that this was going to go down the condominium route and one of our core competencies is condominium development and construction.
“We ended up working closely with Boardwalk and RioCan over the past several months to simultaneously complete the purchase and sale of Boardwalk’s interest and enter into a partnership agreement with RioCan.
“It was very complicated working with both parties, but it was a great process and we are delighted that we were able to get involved.”
Location key for the densification project
The location is within walking distance of schools, parks, shops, workplaces and public transportation. Highways 401 and 403 are easily accessible from the site.
Although it is relatively early in the process and few details are available, the project is expected to include approximately 400,000 square feet of residential space with approximately 510 units in 17- and 23-story buildings connected by a five-story podium. . .
Ballantyne predicts that there will be approximately 19,000 square feet of interior design and 11,000 square feet of exterior design.
“As with all of our projects, we will size the suites with a design that fits well with the area we are in,” Mathur said.
There will also be between 10,000 and 14,000 square feet of retail space on the main floor.
“Retailers will want to take a look at it as the tower grows into the sky,” Ballantyne said. “But I would say it would be something that would complement the rest of the retailers out there.
“It would be more service oriented. We would like to find food there and another bank on the site and uses that will be beneficial to the people who live there.
No firm deadlines yet
RioCan and Marlin Spring of Toronto are preparing their next submission to the City of Mississauga for approval of the site plan. Although no timeline has been set, Ballantyne is hopeful that commercialization of the project can begin in the spring of 2022.
“What is in the foreground in our mind is that we want to move forward as quickly as possible with our partner,” said Mathur. “We will be working closely with the municipal authorities and our consultants to bring this project to market as quickly as possible.
“There is a lot of demand for housing in this particular area and we want to do what we can to meet that demand and provide something good for this area. “
The two project partners
RioCan Living developments leverage RioCan’s portfolio of more than 200 commercial and mixed-use properties.
“We think this fits perfectly with our branding and you’re going to see a lot more projects like this coming from RioCan over the next five years,” Ballantyne said. “We want to make sure the RioCan Living brand is both condo and rental.
“We want to make sure that we are building a quality product that fits into the contextual design of the neighborhood in which it is built. “
Marlin Spring is a real estate investment company that has acquired over 45 projects comprising over 14,000 units in various stages of development, construction, repositioning and completion across Canada and the United States.
Its projects represent more than 13 million square feet of gross floor area and a value of over $ 7 billion upon completion.
“This project fits perfectly into our acquisition criteria, which include working with excellent partners and being located close to public transport in growing neighborhoods with solid infrastructure and amenities” , said Mathur.
“It’s not just about building a building and selling it.
“It is by thinking that whoever buys it will benefit from living in this neighborhood and this building or, if you are an investor, that you are reassured in knowing that you will be able to attract good tenants and you are in a area that will continue to increase in value.