Schneiders site sold to developer with ‘excellent track record’ here
‘It is a very big deal, and we are very excited about it’ — Mayor Berry Vrbanovic
KITCHENER — The former Schneiders meat plant on Courtland Avenue, a sprawling and historic part of the city’s industrial heritage, has been bought by Auburn Developments.
Auburn is well known in Kitchener and Waterloo. The London-based developer did the Arrow Lofts on Benton Street in downtown Kitchener and the massive redevelopment of the Barrel Yards site in Waterloo.
“I think Auburn has an excellent track record locally, so I am very excited to see them be the successful purchaser,” said Kitchener Mayor Berry Vrbanovic. “They have the skill set, the resources and the passion for that kind of urban development.”
The Schneiders plant, which includes 750,000 square feet of former industrial and office buildings on 27.6 acres, was listed for sale in December 2015. Auburn had it under contract for the past six months as it carefully tested the grounds to determine how much it will cost to clean up the site. Results indicated very little contamination.
Tuesday’s announcement put to rest any fears the property would become a graffititagged and litter-strewn reminder of Schneiders’ storied past. Some buildings on the site date back to the 1920s.
The sale was brokered by CBRE, and the firm’s senior vice-president for southwestern Ontario, Peter Whatmore, said there was a lot of interest right from the beginning. CBRE regularly toured potential buyers through the buildings.
“In lots of cities you would see buildings like this sit dormant for years and years and years,” said Whatmore. “For it to be sold in two years, I think it is pretty remarkable, and speaks volumes about the depth of this market.”
Auburn’s preliminary studies say the site could include 150,000 square feet of commercial space and 2,000 residential units. The buildings and parking lot cover 27.6 acres of land, making the site more than twice the size of the Barrel Yards project in Waterloo.
This Schneiders site needed a developer with experience and capital.
“These redevelopment opportunities are not for the faint of heart, you’ve got to be a sophisticated buyer who understands the real estate you are looking at, who understands the market you are playing in,” said Whatmore.
The Schneiders plant sits right on the LRT line that runs along Borden Street, it is close to the Iron Horse Trail and just a few minutes from the city core.
“It lends itself to some really exciting mixed-use possibilities going forward,” said Vrbanovic. “It is a very big deal, and we are very excited about it.”
The area around the Schneider site is known as the Mill Street Industrial Basin. Large sections of it are now ugly reminders of the area’s fading past. There are parking lots sprouting weeds, propane tanks piled behind wire fences, empty and underused buildings. Schneider Creek is a concrete-lined storm sewer as it flows through that neighbourhood.
A redevelopment of this size is expected to spur more new construction in the area.
“The site offers its new owners the opportunity to create an entire mixed-use community with residential, commercial and office uses that have the potential to rejuvenate the entire neighbourhood,” said Whatmore.
That area is represented by Coun. Frank Etherington, who called on the developer and city to include some affordable housing in the redevelopment. Etherington credits the LRT line, which runs along Borden Avenue and Ottawa Street, for attracting a buyer in less than two years.
“I expected it to be empty much longer,” said Etherington. “I was starting to think that was the way it was going. I think the only saving grace is the LRT, again. I think, without fail, the LRT is making all kinds of sites very attractive.”
It is a unique opportunity for a developer — that much land available all at once just minutes from a city core. Whatmore said there were few, if any sites like it in any other Canadian city.
“It will be exciting over the next five to 10 years as the development evolves,” said Whatmore. “It will be a great catalyst for future development of that whole end of the city.”
He is supported by Vrbanovic, who stressed it will take time to see the entire property redeveloped.
“It is not a two-year project when you have a site that size,” said Vrbanovic. “I think realistically we will see development taking place on that site during the next decade.”
J.M. Schneider worked in a button factory in downtown Kitchener when he was injured at work. He started making sausages using a family recipe, and then went door to door. It was a humble beginning for what would become a multibillion-dollar food processing industry.
For nearly 100 years the smell of hotdogs and sausages wafted over Courtland Avenue and the surrounding neighbourhood. Big trucks that hauled the products to stores near and far rolled over the narrow streets around the plant. The sounds of demolition and construction will begin in the coming months, and last for a long time.