American Hotel
Brick-and-beam office demand drives reno as downtown building boom continues
The oldest building in Kitchener has new owners
KITCHENER — The oldest building in downtown Kitchener has new owners with plans to create brick-and-beam office space for a tech company.
The American Hotel, which sits on the corner of King and Queen streets, was recently purchased by two local developers, the JG Group and Vive Development.
Both companies have watched startups slowly but steadily lease space around the downtown. Now, the core’s supply of old, authentic space is almost exhausted. That makes the 1862 building, with 20,000 square feet of space, an attractive candidate for redevelopment.
“We have been looking in downtown Kitchener for quite a while,” said Shaddi Fahel of the JG Group. “This one has huge historical significance and is at the crossroads for downtown Kitchener.”
During the past 10 years, the building has been bought and sold many times. The property has a reputation among developers for being a tough challenge. The renovation is expected to cost twice as much as the purchase price.
“It has needed some TLC for a little while,” Fahel said.
The previous owner announced ambitious plans last fall to demolish most of the historic building and add several new floors. After quietly scrapping those plans, the out-of-town owner let the building go.
“We are looking at maintaining what is there and bringing it back and beautifying it, and respecting the history,” Fahel said.
JG has lots of experience redeveloping old buildings and constructing new offices. Vive Development specializes in redeveloping older apartments and multi-residential buildings.
Louis Breithaupt, one of the city’s early industrialists, built the American Hotel. The American Civil War was raging south of the border, and it was five years before Canada would be founded as a country.
Back then, the city was called Berlin. It was a centre for brick factories, leather tanning, beer making and furniture manufacturing. Now, one of the few buildings that remain from that era will be repurposed for the latest economic wave washing over the city — the startup boom. There is strong interest among startups and growing tech firms for space in the old building.
“I think it is no secret there is a lot going on in the tech sector downtown, and they put a focus on staying downtown when they can, they appreciate brick-andbeam type spaces,” Fahel said. “There has been interest from a number of companies.”
Plans call for two ground levels of retail shops along Queen and another on King Street East. The top two floors will be office space. The developers are hoping for wider sidewalks as part of the city’s plan to remake Queen between Duke and Charles streets.
“We are really pushing for patios along Queen Street, or some way to put people outside in the summer months on Queen or Goudies Lane. That is very important to making sure this project is a success,” said Stephen Litt, head of Vive Development.
Renovation and restoration work will begin as soon as building permits are issued. A new elevator is part of the work, and the building should be ready for tenants next spring.
“We believe this can be turned into a jewel for downtown Kitchener,” Litt said.
From the sidewalk, the Lshaped building runs along both King and Queen. There are actually five buildings connected by a hodgepodge of halls and stairs. Three different owners have parts of it. Vive Development and the JG Group have the Queen side of the building, as well as a narrow section on King East.
“It is the corner of King and Queen,” Litt said. “I would argue this is the centre of the universe.”