In a surprising move, Greater Toronto’s YMCA has sold its location in Mississauga, Ontario to a local company. The report from CoStar explains that the plan is a multiphase project spanning various towers.
The site interviewed the buying company’s president, who confirmed that the deal closed on the 5th of December. The $90 million number comes from property records. However, HBNG is still to release an official statement.
While the YMCA hasn’t commented on the topic, it appears there’s a lease negotiation for the organization to maintain operations. The site plans have several phases, but mixed-use towers with floor retail are among the initial expectations.
The Decision Behind the Sale
The Real Estate News Exchange has a more detailed article about the sale. It goes through the comments of John A. D’Angelo, both president of RGF and HBNG’s CEO. He states that the YMCA sat on a considerable asset, so they probably considered it was better to invest that value for more important tasks.
The YMCA’s goal, according to the report, was maximizing upfront proceeds from cash sales. It resulted in a request for proposals. RGF obtained exclusive rights for the property’s negotiation.
The mixed-use development for the site offers plenty of opportunities. Permitted developments for the property include many high-density projects. It means that residential, office and retail infrastructures are viable.
The Property Itself
The facilities include a gym, fitness studio, childcare service, and a swimming pool. However, the YMCA negotiated a leaseback to keep its operations. That’s why RGF has offered space for the organization if asked.
The site enjoys an excellent location as well. People can walk from it to retail centers, schools, offices, and other facilities. Both Celebration Square and the Square One center are in the area.
Condominium development in the surrounding neighborhood has also been increasing, driving demand for residential space. There’s also the light rail transit line construction that recently started development.
HBNG Holborn Group: Leading RGF Developments
HBNG is an integrated development firm involved with several real estate operations in the area. RGF is a partnership between high net-worth individuals and large Canadian pension funds.
The main goal for the group is to tackle every opportunity for growth in the market. That means investing in projects that can benefit a city’s growth or change life quality. However, not all deals benefit that vision, so they focus on the most relevant projects for their vision.
According to the article, the companies belonging to HBNG include Kapp Infrastructure, Poetry Living, and Soho Innovation Lab.
The Company's Portfolio
Finally, the company invests in different types of properties without concentrating on specific areas. For instance, RGF is partnering with Mattamy Homes to create around 700 homes. The official builder is Poetry Living.
On the other hand, we have the Soho Center. It spans 35,000 sq ft for retail and office space as well as parking. HBNG also developed a Walmart in Collingwood, and RGF led purchasing The Country Club. This golf course will see the Country Club Village’s development.