Failed Jamesville Lofts up for sale to highest bidder
A failed condo development in downtown Hamilton is now for sale to the highest bidder.
The future of the so-called Jamesville Lofts - billed as a sleek, modern six-storey building when it was unveiled to prospective investors in the fall of 2017 - became a question mark last January after builder Areacor Inc. was placed in receivership.
Construction at 15 Cannon St. W. had long stalled since ground was broken in August 2019 after Areacor was scuttled by repeated cost overruns and loan rejections.
Now, the development could soon be back in play.
RSM Canada Limited, which has been appointed receiver over Areacor's assets and properties, put the attractive parcel of land up for sale earlier this month. The deadline for offers is May 27.
Located in a downtown neighbourhood just a few blocks from the West Harbour GO Station, RSM describes the roughly 35,900-square-foot mixed-use property as a prime real estate development opportunity." It's already been approved for 40 residential condominium units and commercial space on the ground floor along with 12 residential parking spots and 32 locker units, according to an ad from RSM.
But whether a new owner will see those plans through remains unclear.
RSM said in a statement it's actively pursuing offers from prospective purchasers, without restriction," but declined to disclose if a new owner will proceed with the existing project.
That's not exactly welcome news to more than two-dozen investors who've yet to see deposits on units they bought four years ago fully returned despite the project being parked.
I think the general hope or goal of everybody is that it goes up for sale and we all receive our deposits back," said Nathan George, who deposited roughly $80,000 for a unit and created a Facebook page for other worried owners in March. That's the best-case scenario."
A letter RSM sent to investors last month - reviewed by The Spectator - states no deposits or upgrade charges" will be released until purchases of sale contracts are terminated by a court order.
According to bankruptcy records, 26 buyers deposited more than $2 million into Areacor's project, of which more than $1.7 million was released to (Areacor) for use with respect to the development."
The records state $20,000 per unit are guaranteed by the Tarion Warranty Corporation, indicating that at least a portion of deposits will be reimbursed. But RSM has declined to comment on several occasions when asked whether deposits would be returned in full.
Sebastian Bron is a reporter at The Spectator. sbron@thespec.com