Brandon Donnelly

Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

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Month: February 2019

  • Junction House Sales Gallery — Now Open

    We just received a bunch of photos back of our Junction House Sales Gallery. So today is photo day on the blog. (Thank you Dialogue 38 for coordinating these.)

    Here’s the front “gallery” area. The artwork hanging on the wall is by local artist, Leeay Aikawa. Her work is terrific. You can see this space as you walk along Dundas Street West.

    Here is the model suite pavilion and main reception area (evening shot). The bar area is absurdly long. It was designed to accommodate beers from Indie Ale House down the street.

    Dialogue 38, the designers of the space, really wanted the model suite to be a “pavilion” — something akin to Mies van der Rohe’s Barcelona Pavilion. So here’s the ramp that takes you up and inside.

    Finally, here’s the model suite. The kitchen is by Scavolini. And the backsplash is a penny tile.

    The sales gallery is located at 2720 Dundas Street West and is now open every day of the week except Tuesdays. The hours are 1PM to 7PM during the week and 12PM to 5PM on the weekends.

  • Shaping Cities in an Urban Age

    Shaping Cities in an Urban Age is the third book to come out of the London School of Economic’s Urban Age project. It was published last fall. The first two titles were, Living in the Endless City (2011) and The Endless City (2007).

    If you’re familiar with the first two publications, you’ll know that these books are heavily illustrated. Lots of maps, charts, and diagrams. So they make great coffee table books. But they’re also filled with insightful essays — this one has 37 of them.

    In this particular book the focus is on the following:

    “It identifies current trends that are making cities more fragmented, less equitable and environmentally more damaging, and argues powerfully for a more integrated social, environmental and spatial approach that can inform and inspire city-makers that are shaping an increasingly urban world.”

    I am sharing this with all of you today because I have always really enjoyed these books. They have a way of quickly putting things into perspective globally.

    Around 2.5 billion more people are expected to live in an urban agglomeration by 2050. And 90% of this growth is expected to happen in just two places: Asia and Africa. This is an unprecedented shift that will obviously create many challenges and many opportunities.

    This book is about that.

    Image: Phaidon

  • Toronto to market 11 city-owned sites for new affordable rental housing

    At the end of last month, Toronto City Council adopted the “Housing Now” action plan. The first phase of the plan involves the public marketing of 11 city-owned sites for the purpose of finding non-profit and private sector partners to help redevelop the lands with new mixed-income housing. It is expected that these lands could accommodate about 10,000 homes.

    Here is the list of sites:

    As part of the offering, around 2/3 of the built units will need to be rental (the above chart shows more), and of these rental units, 50% will need to be affordable with rents set to 80% of Toronto’s average market rents. All of this should translate into approximately 3,700 new affordable homes. (Mayor Tory’s plan is to build 40,000 affordable rental homes by 2030.)

    The City wants to ultimately retain ownership of these lands, and so the sites will be offered up through long-term land leases. It looks like they’ll be for 99 years. The City will also be forgiving a number of fees and levies for the 3,700 affordable homes. They are pegging the PV (present value) of these development incentives at just over $280 million:

    Making use of surplus public land to increase the supply of affordable housing certainly makes a lot of sense. But there’s a cost burden associated with these affordable units, which is why discussions around inclusionary zoning often come back to offsetting measures. Who is going to pay for these subsidies?

    The above “financial incentives” — which in this case are simply foregone revenue — speak to this cost burden.

    Tables: City of Toronto

  • Construction update — MIRA, San Francisco

    The MIRA Tower in San Francisco is one of my favorite buildings by Studio Gang and probably my favorite tall building under construction right now. Here’s a video and a few photos from the San Francisco Chronicle’s urban design critic, John King:

    When we first met Studio Gang, this project hadn’t yet started construction. They broke ground in April 2017. But it was one of the designs that got us particularly excited about what a Studio Gang building could mean for midtown Toronto.

    Now that the MIRA Tower is well underway, I have to say that it looks even better than it did pinned to the walls of their Chicago studio. I can’t wait to see it in person once it’s complete.

  • Bye Tumblr. Hi WordPress.

    I finally did it. Over the weekend I ported this blog over from Tumblr to WordPress. I had been thinking about doing this for a while, but kept putting it off (1) because of the work involved and (2) because I was worried about my permalinks changing. About 35-40% of the visits to this blog come from organic search. I’m on the first page when you Google “real estate developer.”

    I had been using Tumblr since I first started writing this daily blog back in August 2013. But it started feeling increasingly limited. It isn’t great for longish-form blogs like this one and it is terrible at handling photos and other embedded content. (I plan to post more of my photography now.) The last straw for me was the inability to blog from a mobile device. I tried that over the weekend and it was bad.

    I was also starting to feel like the product was on the decline. Yahoo acquired Tumblr in 2013 for $1.1 billion. Tumblr hadn’t yet figured out how to effectively monetize its platform and Yahoo needed a cool social product in their portfolio. But that deal doesn’t seem to have gone as planned, at least not for Yahoo.

    So here I am on WordPress. I’m still working out some of the kinks, but I think we’re almost there. If you’re reading this post in your inbox, it should be business as usual. If you’re reading this post on the web, you’ll notice a few differences (I’m still fine tuning the design).

    Regularly scheduled programming will resume tomorrow now that we’re just about setup.

  • Height vs. density

    This Planetizen article (2014) by Brent Toderian surfaced over the weekend. It is about tall buildings and why we should be focused more on how they are designed, as opposed to just how tall they are. Brent talks about this in terms of “density done well.”

    One of the things that is often misunderstood when it comes to tall buildings is the relationship between height and density. It is often assumed that the two are perfectly correlated; but they’re not, which is why I like this quote from the above article:

    “Height and density have a relationship, one that can be over-simplified or mischaracterized, but they aren’t the same thing – you can have density without height, and yes, you can have height without density.” -Brent Toderian

    Part of the challenge is that density is a more nuanced metric. Height, on the other hand, is a lot easier to understand. How tall is this building? Oh, it is x storeys tall. But that’s only one piece of the puzzle.

    Photo by Erwan Hesry on Unsplash

  • Change, somewhere else

    I went snowboarding today. As always it was a lot of fun. If only Toronto had mountains.

    Here is a Canadian video about snowboarding from 1985 that, I think, does an excellent job demonstrating how resistant to change we humans can sometimes be.

    The video sure sounds silly today, but it probably didn’t in 1985. It aired on the CBC.

    I am writing this post on my iPad and there doesn’t appear to be a way to embed the video. The Tumblr app isn’t great. So all you’re getting today is a link.

  • Cost-plus pricing

    Today, Urbanation released its Q4-2018 market highlights report for the Greater Toronto Area. 

    The general media will pick up these numbers and tell you that there’s been a precipitous decline in the number of new condominium sales. But the reality is that 20,028 units were sold in 2018, which is actually in-line with 10-year averages for this region. 2017 was a particularly frenetic, and unsustainable, year.

    The average pre-construction sold price for a new condominium in the former City of Toronto (the core) was $1,117 psf last year, and $921 psf across the broader region. These numbers represent significant double digit increases from the year prior. But again, what I don’t think many people appreciate is that the cost environment has also changed dramatically over the last few years.

    Construction costs are way up, as are development charges and a myriad of other pro forma line items. The above numbers are simply a result of cost-plus pricing. Here’s where costs are at and here’s where we need to be to make the project feasible. Margins haven’t increased; in fact, they’ve probably been squeezed for many developers.

    I think this is an important topic that deserves more transparency and visibility. So I’m hoping to work with a developer friend of mine and publish something more substantial in the coming months.

  • A beautiful destination: Rio de Janeiro

    Below is a breathtaking video of Rio de Janeiro by Beautiful Destinations. If you haven’t heard of them before, they run a great YouTube channel profiling places and experiences from around the world. I think they also post a new video every week. If you can’t see the video of Rio below, click here.

    [youtube https://www.youtube.com/watch?v=gYy1RITRN9s&w=560&h=315]