Vantage Developments has acquired a development property at 98 James St. S. in Hamilton for $13 million after it was placed in receivership last August.

KSV Restructuring Inc. was the court-appointed receiver for the transaction, which marks Vantage’s second acquisition in Hamilton since it launched a year ago.

Toronto-based Vantage was co-founded by partners Alan Leela and Shamil Jiwani, two young real estate executives who graduated from the Ivey Business School at Western University. Leela was formerly vice-president of investments for Emblem Developments and Tricon Residential while Jiwani was also a VP at Emblem.

“We always had entrepreneurial ambitions and the market was really slowing down in 2022 and 2023, and then you go into 2024 and start seeing opportunities to acquire sites in a period of less competition,” Leela told RENX during an interview that also included Jiwani.

“Real estate is obviously a capital-intensive business but, when you're able to acquire sites a bit more opportunistically than in years past, it starts feeling like a good time. So that's the origin. We’re just two guys in the industry coming together with similar ambitions and seeing a window of opportunity.”

Vantage’s investors

Jiwani added that Vantage doesn’t use debt in its acquisitions and only moves on deals where it can bring the right capital structure forward. Investment comes from high-net-worth family offices as well as friends and family members with a solid understanding of real estate.

“In slower markets there's a natural proclivity to be scared and play a lot of defence,” Jiwani said. 

“We're trying to take the approach of sometimes the best defence is a good offence. We can be a little bit more opportunistic but also be extremely mindful of not getting ahead of our skis.”

History and location of 98 James St. S.

The 98 James St. S. site was originally home to the former James Street Baptist Church, which was constructed between 1878 and 1882. Aside from its historic stone facade, the church was demolished in 2014 and the property has since gone through a tumultuous decade.

Stanton Renaissance planned a 30-storey condo called The Connolly for the site, but the project was placed in receivership in 2017. It was sold to Hue Developments, which proposed a 31-storey tower with 315 units a year later. 

Milborne Group-affiliated companies acquired the site for $24 million in September 2022 but it was again placed under receivership and Vantage submitted a $13-million stalking horse bid that no other investor surpassed.

The James Street property is located within Hamilton's central business district. It’s close to city hall and the proposed entertainment hub that incorporates FirstOntario Centre, Hamilton Convention Centre and FirstOntario Concert Hall.

The site is a block away from a GO Transit station and 350 metres from the James Street station on the planned Metrolinx light rail transit line.

Some costs were already paid for

All of the development charges have already been paid, as have some permit and consultancy fees, which increased the site’s attractiveness. Conditional site plan approval is still in place for a 31-storey mixed-use tower with 315 residential units.

“We're definitely believers in the Hamilton story and the potential that Hamilton has,” Leela said. “This site has a history that’s not the best and I think it deserves a much better future. Based on our collective histories, our ambition and the fact that we have the time and resources to put a lot behind this project, we're not just stewards of capital but stewards of the cities in which we build. 

“We take that responsibility very seriously. But sometimes to make a big impact it also requires a special site, and this really checks that box.”

Vantage’s initial focus for the James Street site is to clean it up and do engineering studies to ensure the facade is stable and the development objectives can be accomplished from a technical perspective. The company will also bring an architect on board to move the project forward.

Leela acknowledged the condo sales market is challenged at present so launching 98 James St. S. will be dependent on how conditions evolve. He believes they’ll be in a position to go to market in the first half of 2026 if the situation has improved enough at that time.

188 Cannon St. E.

Vantage’s first acquisition, also in downtown Hamilton at 188 Cannon St. E., was made last March. It’s proposing to develop an Arcadis-designed 32-storey condo with a five-storey podium, approximately 380 units, 136 vehicular parking spaces, and retail at grade on the site of a former laundromat. 

High-rise buildings of around 30 storeys with approximately 350 units are in Vantage’s sweet spot, according to Leela.

“Once you go above that it requires a certain amount of patience in terms of approval, design, construction, et cetera,” he said. “That’s totally fine but, being mindful of where our strengths lie, we want to be in projects that we can typically be in and out of within five to six years.”

The site plan approval process is nearing finalization and Leela said sales could launch as early as Q4, or the first quarter of next year if market conditions are favourable.

Future acquisitions

Jiwani noted Vantage is open to acquisition opportunities throughout the Greater Toronto Area and Greater Golden Horseshoe region. But since the partners have past high-rise development experience in Hamilton and good relationships with city officials, it made sense to move forward with the James and Cannon street projects first.

Jiwani said Vantage has strong relationships with brokers and land owners and is in the early stages of looking at a couple of potential acquisition sites. 

Vantage is open to developing purpose-built rental apartments as well as condos, but Leela said the financing regime for rental buildings is challenging at the moment.