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62 + 64 King Street East

Two stunning, historic buildings ready for transformation 

in the heart of downtown Hamilton 

The Property

Two vacant, adjacent, mixed-use properties on King Street East - in the heart of Hamilton’s downtown - will be transformed into a modern office complex consisting of a smart, contemporary restaurant on the main floor of 62 King St. and office space on all the other floors. 64 will be capped by an eco-friendly green roof and rooftop terrace. The basement space will be updated and available for lease to a complementary business. 


The sharp new design will be created by the respected architect Graham McNally of Toms and McNally Architects, who is well known in Hamilton for beautiful, successful renovations and adaptable re-use projects. 
Meet the potential tenants
Restaurant
The restaurant will be created by an experienced local hospitality business owner or possibly national tenant.
Office Space
The office space will be leased to a combination of co-working and conventional office tenants.
It is planned that tenants will have signed long-term net leases and will be contributing significant equity to the project. 

The Opportunity

This is a unique opportunity to invest in an exciting new development which will achieve moderate cash on cash returns in the near to medium-term, with limited downside, yet offer significant upside potential in the longer-term.

Key Points of the Investment
Rare Value Add Opportunity
The interior of most of one building has remained unchanged for over 50 years, allowing us to  update the property and achieve above market rent rates.

Minimal Exterior Expenditure
Both building exteriors are in very good condition – needing only minimal restoration to transform them into a seamless façade that will enhance the value of both properties.

Encouraging Market Fundamentals 
Downtown Hamilton is experiencing a significant increase in new high-rise developments, renovation of older ‘character’ properties, and added transit. This translates into an increase in occupancy and rental rates in the next few years.


 
Tenants
The prospective office operators will be proven to be successful in other markets. 

Return
As the area transforms, it is expected that property values will rise significantly over a 5-year period, In the meantime, the property is expected to deliver an annual cash on cash return of 6.0%, rising each year through escalations in the long term leases.
 
Conservative Borrowing
The mortgage will not exceed 60% of total cost. This, combined with a long-term hold, results in very conservative borrowing.

Investment 
Total cost of investment                   $7,000,000
Mortgage                                         ($3,500,000)
Cash to be raised                           $ 3,500,000

 
For more information and a prospectus, please call Malcolm Silver at 416 488 3393 or email malcolm@msilver.com
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