Parkit Enterprise (PKT-X) intends to begin construction on a multifamily project it has been planning for over three years, after taking on two partners for the twin-tower development at 568 Second St., in London, Ont., across from Fanshawe College.

The 3.55-acre property is occupied by an industrial building which will be demolished to make way for the project. Parkit says its land contribution to the three-way partnership is valued at $12.9 million.

Two companies with strong roots in London, Decade Capital and Southside Group, will each take 25 per cent stakes in the venture, which is known as 760 Second Street Partnership.

Vancouver-based Parkit owns the other 50 per cent of the venture.

"568 Second Street represents a strong opportunity to convert an industrial asset into much-needed rental housing in a growing market,” Parkit chairman Steven Scott said in the announcement Monday. “We are excited to partner with Decade Capital and Southside Group - groups that have a strong track record of delivering high-quality developments."

First tower construction set to begin

The partners plan to begin construction on the first of two, 15-storey purpose-built rental buildings before the end of 2025.

The announcement states municipal approval and building permits are in place to begin construction on the first building, which will be comprised of 250 units and have an estimated gross floor area of 234,071 square feet. Permits obtained to date include demolition, foundation and architectural shell. 

The project was first envisioned as two 12-storey buildings, for which the original development proposal was submitted to the city in 2022.

Parkit subsequently rezoned the site for two 15-storey purpose-built residential apartment buildings totaling 543 units, with an estimated gross floor area of 487,151 square feet. Timing for development of the second tower at the property is to be determined.

Neighbouring Fanshawe College is Canada’s largest college, with over 43,000 students. It is also located on London's new rapid-transit corridor along Oxford Street.

Parkit's recent business strategy

Parkit was founded in 2006 as a company investing in and operating parking facilities, but has since expanded into and increased its focus on industrial assets and, most recently, the multifamily sector.

Earlier this year, Parkit bought into Montreal-based industrial owner/operator PROREIT (PRV-UN-T), taking approximately a 10 per cent stake in the trust as part of a transaction involving $96.5 million of its industrial buildings.

Parkit accepted approximately $40 million of the purchase price for the six properties (all located in the Winnipeg area) in PROREIT units.

“The redevelopment plan is consistent with Parkit's strategy of unlocking value through repositioning underutilized assets in strong urban markets,” today's announcement of the 568 Second St. project states.

”Parkit recognized that the highest and best use of this site was to rezone from industrial to residential.”

About Parkit Enterprise, Decade Capital, Southside Group

Parkit Enterprise is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key urban markets in Canada. In addition, Parkit has parking assets across various markets in the U.S.

Decade Capital is a Toronto- and London-based real estate investment and development firm focused on "acquiring, developing, and managing high-potential real estate assets." The firm blends hands-on execution, acquisitions and construction.

Southside Group is a diversified real estate development, construction and property management company based in London. Established in 1979, Southside has grown into one of Southwestern Ontario's most influential private real estate firms, with a legacy of high-quality residential, commercial, industrial and institutional projects.