231 Bay

231 Bay St N Hamilton, ON

Invest in a 19,000 square foot, four-level mixed-use and residential property located in Hamilton, ON.

The Plan: Improve the exterior and interior of the property to meet market demand and increase residential leases to market rent.

This property sold out to 760+ Canadians! These investments sell out quickly and they are reserved for our members.

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Estimated Term

4 Yrs

Estimated ROI

97.1%

Estimated IRR

18.89%

Estimated Owners' Days**

1

*The key numbers to explain how we make this estimate are available within your addy account. Investments in this property are restricted to British Columbia, Alberta, and Ontario residents. Qualified members can invest from $1 and up to $10,000.

**This is the day when we issue a distribution, or the property exits — aka cash earned from doing zero things, aka #passiveincome. For this property, there is one Owners’ Day which is when it exits.

Property Updates

Estimated Returns

The information presented below represents expected results of a $500,000 maximum offering (subject to increase as the Issuer may from time to time determine) and may not reflect actual results. The expected return (IRR and ROI) based on your investment amount can fluctuate up or down based on many factors. Please review the entirety of the Offering Memorandum and understand the risks stated in “Item 9 – Risks Factors”. You are not liable beyond your investment amount.

231 Bay ST Expected Cashflow and Return

The Reel 📹

The Gram 📷

the highlights ✨

  • 231 Bay St N is approximately a 19,000 sqft, 4 level brick and steel beam mixed-use building located in downtown Hamilton, Ontario.
  • 231 Bay St N is bounded by a semi-detached residential home to the South; Bay St N to the East; Barton St W to the North; and the Bridgeworks Community Space to the West. The latter of which was granted $206,000 by the federal government for Supercrawl to retrofit into a concert hall.
  • The property also resides within the West Harbour Secondary Plan, which was created to curate the development and growth of Pier 8, Bayfront, James St N and Barton-Tiffany lands, with the latter transitioning into Hamilton’s Film District.
  • In February 2021, Forge & Foster acquired nearby 243 Queen St N and partnered with Aeon Studio group to promote and invest in Hamilton’s film economy, as the industry continues to grow year after year.
  • 231 Bay St N is also located steps away from the West Harbour GO Train Station.
  • The Property sits on 0.35 acres, a majority of which is utilized as parking on the southern side. There is private on-site surface parking for approximately 14 vehicles. There is also public parking along Bay Street North, as well as public transportation services.
  • The Property is composed of commercial space on the ground and lower level, along with live/work studios on the upper floors.
  • The existing D URBAN PROTECTED RESIDENTIAL – ONE AND TWO FAMILY DWELLINGS zoning allows for single and two family dwelling; lodging home; residential care facility or retirement home. The site also possesses site-specific zoning, D/S-699, which also allows union office and banquet meeting hall uses.
  • The building can have a 14 Meter Maximum Height
  • It was built in the early 1900s
  • The current residential portion is occupied. The commercial portion being vacant as it was owner-occupied by the previous owner.
  • 231 Bay Street North has a Walk Score of 84 out of 100. This location is Very Walkable so most errands can be accomplished on foot.
  • 231 Bay Street North is a six-minute walk from the LW Lakeshore West at the West Harbour GO stop.
  • This location is in Hamilton. Nearby parks include Central Park, Harbourfront Park and Bayfront Park.

Near the Property

231 Bay St Hamilton, ON - 3D map
231 Bay St Hamilton, ON - transit score
231 Bay St Hamilton, ON - walk score
231 Bay St Hamilton, ON - bike score

Location

231 Bay St Hamilton, ON - map

Click here to view location on Google Maps

City of Hamilton

  • Though the current pandemic has hindered many economies across the globe, the Hamilton commercial real estate market and residential market has grown during 2020.
  • Pre-COVID, the Hamilton market has shown several signs of a strong economy. The city’s unemployment rate has been below the national and provincial average level over the past few years.
  • Based on a report released by Statistics Canada, Hamilton’s jobless rate dropped to 4.8% in November 2019, making it one of the lowest in Ontario.
  • Even though Canada’s economy is predicted to regain traction in the medium term, Hamilton continues to be among Canada’s strongest economies and created the 3rd most amount of jobs in Ontario in 2019 (Following Toronto and Ottawa respectively).

Hamilton Office & Retail Submarket

  • Like many regions in Canada, Hamilton’s office and retail leasing was effectively paused during the pandemic, as work-from-home measures and the shuttering of non-essential businesses continue to take effect. However, as the distribution of vaccinations begins to ramp up throughout Ontario, the GP has witnessed commercial activity ramp up in parallel. Given the increasing demand and several proposed nearby downtown construction projects currently on the table, the office and retail market is expected to see lower vacancy and higher rental rates in the upcoming years.
  • In terms of sale price, downtown and west Hamilton have witnessed rates for retail, office and mixed-use properties selling for over $300/SF and $400/SF in the past year. Based on previous value-add projects along King St E and James St N, the GP believes commercial rates approaching $20 net are attainable.

Hamilton Residential Market

  • Hamilton’s residential supply is very low for new, condo quality rentals, as condo rental vacancy sits at 0.3%.
  • As residential rental rates have softened in bigger cities, Hamilton is 1 of 10 cities where residential rates are actually increasing. The residential rental softening in major gateway cities is perceived to be a short term effect due to COVID-19, as Toronto is the fastest growing city in North America and Ontario requires 200,000 rental units in the next 10 years to meet adequate demand.
  • Hamilton’s newest multi-residential development, Marquee, has leased all of their most affordable units and starting rents now are $1950 for a 1-bedroom unit, which equates to $2.40-$3.00/sqft.
  • One city block away from Marquee, 140 Main St W, QuadReal is asking $2.25/sqft.5 Also of note is the Waterfront Shores mid-rise community development located down the road at Pier 8, which is slated to include 9 blocks and approximately 1,500 residential units.
  • Currently in negotiations through LPAT, is the addition of a 45 storey tower, which would be Hamilton’s tallest tower from grade to the top if approved (see above image). Also blocks north-east, adjacent to the West Harbour GO Train Station, 282 MacNab St N was recently approved – a 10 storey, 89 unit development.
  • The residential housing market is also in strong demand. According to the Realtor Association of Hamilton Burlington, the average Hamilton Centre home price increased from $427,000 in 2020 to $576,000 in 2021 and sales activity has increased from 56 transactions in 2020 to 177 transactions in 2021.

General Partner Type

Established

These General Partners have 7+ years of experience and have owned and/or operated real estate in excess of $30M+ in asset value. These partners are generally seasoned in the industry and have a track record of successfully managing small to mid-sized real estate projects. (Learn more).

Meet The General Partner

Forge and Foster Logo

Building Better COMMUNITIES

Forge & Foster is committed to generating positive social and economic value for communities, tenants, investors, and other stakeholders through commercial real estate projects in Hamilton and across Southern Ontario. They bring vitality to cities as a leading value-add commercial real estate investment management company.

Bringing People Together

Forge & Foster was established in 2016 by brothers Mark and Joe Accardi, who have recently been joined by two new partners. Wenzel Hoberg, who brings over 20 years of international real estate experience and leadership, and Dane Kerstens, an early Forge & Foster employee who has embraced the values of the company and demonstrated continued excellence and leadership. The partnership is supported by a vibrant team with diverse backgrounds and experience, working together towards a clear vision for the future.

The Investment Type

Value-Add Opportunistic Investment Type

Value-Add

Risk profile: 

Moderate to high

Investor type:

For investors willing to take on more risk to achieve high returns and are willing to wait longer before they begin receiving returns for their investment.

What defines the risk level?  

A Value-Add investment often has little to no cash flow at acquisition but has the potential to produce a tremendous amount of cash flow once the value has been added (for example physical upgrades, better management, added services or more effective marketing).

The Community investment committee

Purchase decisions are made collectively by our community investment committee and our Board of Directors which has a track record of investing in and managing real estate (learn more here). The Investment Committee for this property includes:

Cameron Rogers

Cameron RogerS
INVESTMENT COMMITTEE

Vote: 👍

Like the One West and 29 Harriet opportunities in Hamilton, ON I invested in through addy, I like this deal. Same general partner, similar business plans, same market. A good value-add opportunity with a clear plan to make investors a good rate of return, without excessive risk. The building already has good revenue with lots of room for growth.

Rajvinder Khatar
RBC Executive | ICBC Director

Vote: 👍

Andrew Gaucher
Vice President, McKinley Beach, GGroup

Vote: 👍

What our members are saying

“It was an easy way to invest some funds in real estate that I would normally not be able to afford on my own. It’s great to be part of something that is creating a new way of investing.”

Klaus / Toronto, ON

“My wife and I are excited to have discovered addy, and invested in a Starbucks location nearby — it’s nice to be able to participate in owning commercial real estate without putting up a bunch of money, and knowing we can drive by it anytime makes it more fun than buying stocks!” 

Shawn / Nanaimo, BC

“This is God sent, if you ask me. A chance to own a slice of commercial properties all over the country. An opportunity I otherwise wouldn’t have had had it not been for addy. I can’t thank addy enough. I eagerly await for addys to drop and with each investment, I know I’m actively improving my financial future.”

Jocelyn Armah / Google Review

How Do You Make Money?

You can make money in 2 ways:

  1. Sale of the Property: When the property is sold, any appreciation is paid back to investors in addition to their investment principal.
  2. Rental Income: When tenants pay rent, additional cash flow can be passed back to investors in the form of a distribution.

Details are outlined in the Offering Memorandum for each property.

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