Berkshire, Fiera JV to Build GTA’s Heart Lake Business Park | RENX

The Heart Lake Business Park site in Brampton, just north of Toronto. (Courtesy of Cushman & Wakefield)

Berkshire Axis Development and Fiera Real Estate have opened the 750,000 square foot Heart Lake Business Park in Brampton, just north of Toronto.

The project is site plan approved, with building permits pending for four buildings so far, and all major structural building materials have been secured.

A five-building speculative industrial development will be built in phases and is being marketed by the Fraser factory of Cushman & Wakefield, Michael Yull and Rory MacNeil. Brokers are targeting the e-commerce, general retail, light industrial, life sciences and pharmaceutical sectors for the first phase.

“They’ll all be cleared to 40 feet,” Cushman & Wakefield’s senior vice president of operations told RENX Plant. “Usually buildings of this size are 32 to 36.”

Leased buildings to be delivered in phases

The first phase of construction is underway at 10 Newkirk Ct. with a 316,452 square foot building and 15 Newkirk Ct. with a structure totaling 105,896 square feet. The largest building will have 16 trailer parking spaces away from its docks.

“For the big building, if you’re in the market within the next 12 months for 300,000 square feet in GTA West, you really don’t have any options,” said Cushman & Wakefield’s executive vice president, Michael Yull, at RENX. .

“All the other buildings have been let or are about to be. We have the captive market for that sense, so we anticipate a lot of interest.

The smaller building will feature double-sided navigation, which is rare for a structure of this size and should help generate interest.

“The ownership group would prefer to see unique rentals,” Plant said. “That could change, depending on who shows up and what the commitment is, but we are preparing to lease these buildings to single tenants.”

The larger building is expected to be delivered at the end of March 2023, while the smaller one is expected to follow two months later.

The other three structures to be built and leased at Heart Lake Business Park will be approximately 109,000, 105,000 and 87,000 square feet, respectively.

“Because of the aggressive nature of the ownership group as well as their faith in this place – and ‘pedal to the metal’ is their motto here – I think Phase 2 delivery would likely be towards the end of 2023,” said said Plant. .

Heart Lake Industrial Condominiums

There will also be 61,000 and 46,000 square foot industrial condominiums, with 26 combined units ranging from approximately 3,500 to 5,500 square feet, as part of the Heart Lake Business Park. They will have a clear height of 28 feet and loading at truck level.

Berkshire Axis has been delivering industrial condos for 10 years, and Vice President Craig Wagner said RENX’s interest in these units really started to pick up about five years ago.

“We were very happy to be able to carve out part of the site to deliver to the condo market,” Wagner said. “It has been, and is currently, a very strong market.”

Wagner said units at Heart Lake Industrial Condominiums are about 70% sold and are being released one or two units at a time, aiming to sell when ready for delivery at the end of This year. .

Good location and existing infrastructure

Heart Lake Business Park is located along the Highway 410 corridor with relatively easy access to all major 400 series highways. It is less than 20 minutes drive from Toronto Pearson Airport and CN intermodal sites in Brampton and Vaughan.

The building at 10 Newkirk Ct. provides signage and visibility opportunities directly off Highway 410.

“The project is tightly nestled in a dense residential area, so it has access to a broad population base,” Yull said.

Berkshire Axis and Fiera Real Estate acquired the site in July 2021 for $91 million. The seller was subdivision developer Emery Investments, a Toronto-based private property development and management company that has been in business for more than 50 years.

All of the subdivision’s roads are in place and all of its blocks are serviced.

“Emery is a very experienced subdivision developer,” Wagner said. “Once we went into our due diligence, we realized that their group had aligned everything really well and there was going to be a quick time to market and delivery.”

Partnership between Berkshire Axis and Fiera

Heart Lake Business Park is the seventh project in which Berkshire Axis and Fiera Real Estate are partners.

“It’s not that we have an exclusive relationship with each other, but we certainly have a lot of respect for each other and a lot of respect for our working relationship,” Wagner said. “So when the opportunity arose, it was an easy choice to go to Fiera.”

Fiera Real Estate, headquartered in Toronto, is 100% owned by Fiera Capital Corporation, a multi-product investment management firm with over $174.4 billion in assets under management as of March 31.

Fiera Real Estate is an investment management firm with offices in North America and Europe and over 80 employees. As of March 31, it managed more than $7.6 billion in commercial real estate globally through a range of funds and investment accounts.

Based in Toronto, Berkshire Axis has over 25 years of experience delivering industrial and residential projects in the Greater Toronto Area (GTA). It has carried out more than 30 industrial projects over the past 10 years.

“We buy existing multi-tenant industrial buildings that we convert into condos, we build new industrial condos, and we also have the custom build and build-to-let program that we run with Fiera,” Wagner said.

“All three, if we can find the right sites in the right places at the right time, should enable us to deliver substantial value to our investors.”

These investors include a small group of high net worth individuals and institutional partners, according to Wagner.

Other Recent Berkshire Axis Activity

Berkshire Axis has several other projects in the GTA.

It acquired a 70-acre site at 12505 Heart Lake Rd. in Caledon earlier this year and is looking to rezone it from agricultural to industrial.

“I’m not 100% sure what we plan to deliver there just yet, but we’re very excited about this site,” Wagner said.

Berkshire Axis recently signed its definitive lease agreement for its project located at 11050 Woodbine Ave. in Markham, which has 330,000 and 300,000 square foot industrial buildings with 36-foot clear heights and drive-in and truck-level loading.

They are both fully pre-let and are expected to be completed in Q4 2022.

Berkshire Axis is expected to launch sales of its first industrial condo project in Aurora — at Addison Hall Business Park, which was also developed by Emery Investments — within the next 60 days.

The company has purchased 8.5 acres of fully serviced land and will provide 130,000 square feet of space in three condominiums. Two will have truck-level doors and one with smaller units will have walk-through doors.