- What Spotlight Development’s distressed Kitchener site is seeking bids over $23.2m
- Why There is a stalking horse bid of just under $22.8m
- What next Colliers is marketing the property
Spotlight Development’s distressed site in Kitchener, Ont. is on the block and seeking bids of more than $23.2m.
The currently vacant site on Courtland Avenue East was set to have a four-tower, 2,500-unit, purpose-built rental development. However, the site was placed under receivership in June after Spotlight was found to owe $20.7m in unpaid loans. Colliers is marketing the property.
A stalking horse bid of just under $22.8m has been made by Vive Development Corp. and an investor in MarshallZehr Group’s loan on the project. MarshallZehr is the primary secured lender on the project and brought the receivership application forward in April.
Any competing bids will need to match the stalking horse bid and pay a $450,000 break fee, plus an additional $50,000.
The land is zoned and fully approved for the high-rise development, with buildings ranging from 26 to 35 storeys in height. Development plans also call for more than 200,000 sq ft of commercial space to house office, retail and community services.
The site is adjacent to the Block Line LRT station. The transit line runs from Conestoga Mall in Waterloo to Fairway Park Road in Kitchener, with stops in both downtown Kitchener and uptown Waterloo, making this a prime transit-oriented development opportunity.
Rental demand in the Kitchener-Waterloo-Cambridge region is strong, with a 2.1% vacancy rate, even amid record-level purpose-built rental completions.
Letters of intent are due Dec. 2 and a bid date has been set for Dec. 12.
