A Mississauga property which has housed a community shopping centre for over a half century is for sale and could be destined to become the site of a multi-tower, mixed-use redevelopment.
High Point Mall sits on a 4.41-acre property at 3415 and 3461 Dixie Rd. at the corner of Bloor Street.
Institutional Property Advisors, a division of Marcus & Millichap Real Estate Investment Services Canada Inc., is representing the owner. It is being sold by the two families who developed it in the late 1960s.
“It’s an inter-generational disposition,” Institutional Property Advisors senior managing director Scott Chandler told RENX. “The original developers have passed on and their children are selling.”
“High Point Mall was built by immigrants who arrived in Canada without family, language or money,” said a statement from one of the unnamed owners, which was emailed to RENX via Chandler and IPA. “They did have tremendous energy, though, and hoped to become worthy Canadians who would contribute to society.
“The centrally located plaza and office building have morphed over the years, becoming the community hangout for the many demographics that make up Toronto.”
The statement concluded with: “Although the property is likely a development site now, it is our hope that in the future this location will again become a central community hub for the many and diverse peoples who live in the neighbourhood.”
High Point Mall status, future potential
There are 76,555 square feet of existing retail and office space at High Point Mall generating net operating income of $1.02 million annually. The property is 88 per cent occupied.
Grant’s Foodmart, a local grocer, accounts for 30 per cent of the total space and one-third of the current rent. Other retail occupies 37 per cent of the space, an office building comprises 20 per cent and mall office space accounts for 13 per cent. The average remaining lease term is more than three years.
“It has holding income, which is nice,” said Chandler. “You could continue to operate it as a shopping centre and office building complex for a long time while you’re entitling it.”
An initial planning review by Bousfields Inc. estimates 794,000 square feet of gross floor area could be approved in the designated mixed-use location, including 755,000 square feet of residential space.
The proposed concept plan includes five buildings, ranging in height from six to 25 storeys, including 876 residential units. It also includes a 0.59-acre public park and a new public road connecting Dixie Road to Williamsport Drive.
All but 7,719 square feet of the existing tenant spaces have demolition clauses in place, which would facilitate redevelopment.
High Point Mall’s location in East Mississauga borders Etobicoke in the Applewood neighbourhood, an established and amenities-rich area of schools, golf courses, parks and recreation trails.
The property isn’t far from the Dixie or Kipling GO Transit stations.
Chandler expects plenty of interest in the property from private, institutional and publicly traded developers. The bid date deadline is 3 p.m. on May 31.
Mississauga high-rise development
There were more than 3,900 high-rise unit sales in Mississauga in 2021, a 43 per cent increase from 2020. The average sale price per square foot has more than doubled since 2015 and reached a record $1,125 in February.
“We’re starting to see a natural expansion of the core market to include Mississauga and other 905 regions as the GTA continues to grow,” said Chandler.
“Especially with work from home, it’s becoming a very viable market to locate and buy your home versus the 416, especially where there are already existing amenities and infrastructure.”
There are more than 18,000 units in active high-rise apartment development applications in Mississauga, including more than 1,300 planned rental units.
While Mississauga City Centre and the Lakeshore Road area have attracted some of this growth, it has now spread across the city, including the Dixie Road corridor.
“We sold a large parcel at Dixie and Derry last year,” said Chandler. “Dixie Outlet Mall has been going through a lot of entitlement to the south of this property.
“It’s a nice central corridor where we see intensification starting to happen.”