Fengate Real Asset Investments continues to bet heavily on its hometown of Oakville, most recently with the Sept. 27 completion of the first building in phase one of the almost 700,000-square-foot Oak West Corporate Centre (OWCC).
“The Oakville hub is energetic, dynamic and evolving, and increasingly attractive to businesses and talent,” said Fengate managing director of real estate John Bartkiw.
Bartkiw cited Oakville’s proximity to downtown Toronto, the American border and two major airports, as well as access to public transit and multiple major highways as factors weighing in the favour of the town of about 225,000.
He also mentioned the area’s growing, diverse and talented labour pool and its financial cost-competitiveness when compared to Toronto.
Oak West’s first phase
The 40,700-square-foot building at 567 Michigan Dr. that was just completed at OWCC is in close proximity to retail outlets, transit, green spaces and walking trails. It offers: modern design; 16-foot clear height in its flex office space; 10-foot windows providing plenty of natural light and opportunities for an open concept design; high-efficiency lighting; and an energy-efficient and durable roof.
Bartkiw said the building is offering competitive net rents and is 90 per cent leased or conditionally tied up. Leasing is being handled by Avison Young.
The other two buildings to follow in this first development phase will be designed similarly. There will be a 30,600-square-foot flex office space at 555 Michigan Dr. and a 100,000-square-foot flex industrial space with a 24-foot clear height at 529 Michigan Dr.
The 13-acre OWCC site offers a parking ratio of 4.9 spaces per 1,000 square feet of flex office space and one bay door per every 3,300 square feet at the flex industrial property.
Site plan approval has been obtained and it’s hoped construction on the second and third buildings can commence in the first or second quarters of 2018.
Fengate focuses on flex space
“Fengate’s focus on flex space enables us to meet the diverse and economic needs of the GTA tenant market,” said Bartkiw. “Through innovative design and a competitive financial offering, we’re able to offer best-in-class flexible space at net rents that meet market needs and expectations.”
The second phase of the OWCC development will include a 28.1-acre site that will be home to 400,000 to 500,000 square feet of flex office and flex industrial space as well as retail opportunities.
The Labourers’ Pension Fund of Central and Eastern Canada has invested in OWCC along with Fengate, which invests in, develops and manages real assets. Fengate manages an office, industrial and retail real estate portfolio worth more than $1 billion and encompassing more than 3.5 million square feet of space across southwestern Ontario, Quebec and New Brunswick.
Other local Fengate properties, developments
Fengate’s Northgate Business Park in nearby Burlington is located within an established industrial sector and features convenient access to the Queen Elizabeth Way (QEW) highway and Highways 407 and 403.
The multi-phased development encompasses seven single-storey, flex office, light industrial/warehouse/logistics buildings, with an additional 10 acres of vacant land for future development.
Fengate has assembled 47 acres of contiguous lands with office and industrial buildings, with more than 1.1 kilometres of unobstructed highway exposure, in the QEW and Highway 403 area of Oakville since the beginning of 2014. The site offers potential redevelopment opportunities in the future.
Fengate-managed funds hold another 25 acres of vacant land in the Oakville/Burlington node that offers approximately 450,000 to 500,000 square feet of development opportunities.
Fengate is also in the final stages of obtaining site plan approval for a property at 1325 North Service Rd. in Oakville, near the QEW and Ford Drive, that’s being marketed to lease.