Kaufman Lofts

Centre Block to bring $95 million development to Kitchener downtown

Exciting news this week about a new development in downtown Kitchener, on the Centre Block land that the city has acquired over the past 10 years at a cost of about $13 million.  From The Record:

During a closed-door meeting councillors gave their final authorization to staff for an agreement between the City of Kitchener and Brampton-based Andrin Homes for the redevelopment of Centre Block with 385 condominiums, four new buildings, underground parking, a boutique hotel-spa and a parkette.

“It has been a long time coming, obviously,” Mayor Carl Zehr said.

By 2000 the city had purchased almost all of the properties and buildings that wrapped around the western half of the block, which is bounded by King, Young, Duke and Ontario streets. So far the city has spent about $13 million on all of the costs associated with buying the land, buildings and businesses.

Andrin gets the 2.6 acre site and two heritage buildings for $3.1 million.

Many people wonder how the city got into the land assembly business.  Turns out, it’s an interesting story…

[Carl Zehr] has held the mayor’s chair for 13 years and Centre Block has been an issue for at least 10 of those years. Looking back on it now, Zehr said the city never wanted to get into the business of assembling the land and attracting a developer.

It started when someone called Zehr saying a cinema for porno flicks was about to open on the second floor of a building along the King Street stretch of Centre Block. City councillors quickly rezoned the land to prevent that from happening, and the owner sued. The settlement had the city buy the building and compensate the owner for the loss of his business.

He said the entire council deserves credit for taking the long-term view of Centre Block.

Under the terms of the development agreement, Andrin must take out building permits for the first phase by Nov. 30, 2012. The first phase includes an underground-parking garage, a condo building with about 240 units and a three storey building. Those buildings will be on King Street.

The second phase calls for another condo building, with about 140 units, at the corner of Young and Duke streets with another building that wraps around that section of the block.

The third and final phase includes the development of the Mayfair Hotel into a boutique hotel-spa. The city, development and some downtown property owners are looking for ways to advance the redevelopment of that corner.

…

The cost of the entire development is estimated at $95 million. Regier credits the city’s work to attract the University of Waterloo school of pharmacy and the Wilfrid Laurier University faculty of social work to downtown Kitchener in helping to secure Andrin as a developer for Centre Block.

“I think things are coming together right now, the real estate market in this region remains strong and people are excited about the downtown,” he said.

The city and the developer are hoping to repeat earlier successes with downtown condos. Andrin redeveloped the old Kaufman factory on King Street West into condos that sold quickly. Lofts on Mansion and the condos at the Kitchener Market also proved popular.

Are you excited for this development to come to downtown Kitchener?  Do you think it will be a great place to live? 

Kaufman Lofts

Why we invest in Kitchener Waterloo Real Estate

Yesterday I had the chance to sit down with two of our clients, Dr Robin Walsh and Darryl Kraemer to discuss why they invest in Real Estate, as opposed to any of the other investment vehicles available, like stocks, mutual funds, commodities, gold etc. 

Press play to hear what they had to say:

Darryl and Robin have a great portfolio of single family residential (including condo units) & student rental properties in Kitchener Waterloo, Ontario -all tenanted & performing well. 

If you’re interested in starting to invest and building a diversified property portfolio like theirs over time, send me an email. I’d love to help you