98 James Street South has new owners.
Ontario’s Superior Court approved the bankruptcy sale of the property to Vantage Acquisition Inc. under a new corporation, HAMILTON 98 GP INC., for $13,000,000.
The City of Hamilton waiving new development charges was critical to the deal.
In a factum filed on January 13, 2025, Maya Poliak, the lawyer for the Receiver, KSV Restructuring Inc., wrote the City agreed to extend a building permit issued in 2019 to December 31, 2026.
Had the City not given the extension, ” any proposed development will incur development charges at the City’s current rate, which would result in a significant increase in development charges and a reduction in the Real Property’s value.”
The City collected approximately $2.47-million when development charges were paid in 2019. [The pre-November 2019 DC charge for a one-bedroom apartment unit averaged $16,277. Today, the average is $35,911.]
Vantage is a newer company.
Its website features two articles and states that the planned tall building development at 188 Cannon Street East is part of its portfolio. It recently celebrated its first anniversary.
$13-Mil is 11-Mil than the last sale
The latest bankruptcy occurred when 98 James South (2022) Inc. did not make interest payments on a $12-million loan provided to the corporation by MarshallZehr Group Inc.
98 James South (2022) Inc. purchased the property in 2022 for $24-million.
The previous owners, Hue Developments and LCH Developments purchased the property in the bankruptcy sale.
The first developer to own the property who took possession from the former church parish. He, with the support of then Ward 2 Councillor Jason Farr, gained approval to demolish the church using a “minor alteration” heritage. The front facade was retained.
The first owner then took out several mortgages on the property, and eventually, the corporation declared bankruptcy.
KSV’s receivership documents are available online: https://www.ksvadvisory.com/experience/case/98jamessouth
Production Details
v. 1.0.0
Published: January 25, 2025
Last updated: January 25, 2025
Author: Joey Coleman
Update Record
v. 1.0.0 original version
Is anything going to be built on the site it’s been a waste of a beautiful building church
I hope, in return for waiving the new development charges, the city mandates the owners to build apartments instead of investment condos.