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In 2006, the City of Toronto completed the Castlefield and Caledonia Design and Decor District planning study, which proposed the removal of heavy industrial and auto-related land use permissions that were considered incompatible with the emerging design and décor identity of this area. The By-law established new regulations to further enhance street relationships and improve the pedestrian environment, aligning with the design guidelines developed for this area.
The Mid-Toronto Industrial Area—bordered by Highway 401, Dufferin Street, Castlefield Avenue and Caledonia Road—has witnessed many changes in recent years. Older industrial buildings are undergoing renewal, as warehouse retail and flex office/studio space abundant with high-end retailers take over, demanding increase in net rental rates and higher valuations.
A new opportunity allows investors to gain a foothold in this area by acquiring a retail warehouse property at 1177 Caledonia Road. Currently occupied by Imperial Carpet & Home Inc., this 32,305-square-foot retail warehouse building situated on 2.05 acres—about 0.5 acres of surplus land allows for generous parking as well as a potential expansion—comes with MC (Industrial Commercial) zoning and 0.5 floor index which permits a full retail use.
Permitted uses are: Adult Education School, Artist Studio, Banquet Hall, Car Rental Agency, Car Washing Establishment, Cinema, Club, College, Commercial Gallery, Commercial Recreation, Commercial School, Communications And Broadcasting, Community Centre, Contractor's Establishment, Custom Workshop, Day Nursery, Financial Institution, Fitness Centre, Funeral Establishment, Gasoline Station, Golf course, Health Science Research, Laboratory, Hotel, Industrial Sales and Service, Information Processing, Laundry, Manufacturing, Motor Vehicle Body Repair Shop, Motor Vehicle Dealership, Museum, Office Uses, Park, Parking Lot, Personal Service Shop, Pinball And Video Games Arcade, Place Of Worship, Public Library, Public Self Storage Warehouse, Research Laboratory, Restaurant (With Or Without An Outdoor Patio), Retail Store*, Secondary School, Service Shop, Service Station, Showroom, Theatre, Transportation Terminal, Warehouse, Veterinary Clinic.
*Retail Store and personal service shops, whether accessory or as a main use, shall not exceed the lesser of a floor space index of 0.5 or a combined total gross floor area on a lot of 5,000 square metres (53,800 square feet).
The Property is located in the Yorkdale neighbourhood in the City of Toronto, an area that has been very active in terms of commercial and residential development. Notable projects within the immediate area include the Yorkdale Mall redevelopment project as well as the recent sale of the Downsview Airport mixed-use site. These two projects will dramatically impact the surrounding areas once complete, adding a variety of commercial/residential uses in close proximity to the Property. As of now, the Property is well located with convenient access to amenities including multiple transit options, as well as retail services. Being located in the heart of the Castlefield and Caledonia Design District, 1177 Caledonia Road benefits from:
• Superior access to major commuter routes (Highway 401, 400, Allen Road);
• Close proximity to Yorkdale and Lawrence West subway stations;
• Bus services on Dufferin Street (routes 29 and 329) and bus service on Caledonia Road (route 47) within a short distance.
The transit options provided in the immediate area bode well for both current and future tenancies as well as for potential redevelopment/change of use on-site.
The property at 1177 Caledonia Road offers investors a stable income with the ability to significantly enhance future value. Available for sale-leaseback, the Property enjoys prominent exposure on Caledonia Road, and allows investors to increase the NOI over time.
The existing cash flow will enable investors to capitalize on rising market rental rates through renewal, re-leasing upon expiry, or potentially repositioning to a different use. Long term, this property is poised to benefit from continued land appreciation in a rapidly improving node.
As core Toronto locations are facing increased scarcity and growing demand for high-quality opportunities, it is getting harder and harder to acquire almost any kind of real estate asset.
The Caledonia and Castlefield Design District is going through an unprecedented transformation. Industrial buildings are being converted to warehouse retail and modern high-end self-storage buildings.
This is a unique opportunity to acquire a stabilized, retail warehouse asset in the highly sought-after market offering investors cash flow with the ability to add value over time.
A full due diligence package is available, including: an updated environment report, prop condition assessment, floor plans, and survey, upon execution of a Confidentiality Agreement.
For more details, please contact goran.brelih@cushwake.com or diana.mckennon@cushwake.com.
UrbanToronto collaborated closely with Cushman & Wakefield on this feature for the purpose of sharing details on commercial and industrial properties for sale or alternative use. For more information, contact us here.