Earlier this week a press release went out announcing that Allied Properties REIT (TSX:AP.UN) had established a joint venture with Westbank to redevelop 489 - 539 King Street West here in Toronto.
“What is so exciting here is that Allied has over time assembled 620 feet of frontage on what is fast becoming one of the most interesting streets in Toronto,” said Ian Gillespie of Westbank. “With this scale, we have a unique opportunity for world-class city building.”
Westbank is relatively new to the Toronto market. Their first project was the Shangri-La Toronto in 2012. But since then they’ve entered the city in a big way with high profile projects like the redevelopment of Honest Ed’s at Bloor and Bathurst.
But what excites me the most about this King Street project is that they’ve selected Bjarke Ingels Group as the design architect. I’ve written about BIG a few times before and I’m a huge fan of their/his work. So I’m pumped to see what gets proposed here. It will not be typical.
There are a few heritage buildings on the site. And it looks like some (but not all?) will be preserved.
Based on this post and discussion on UrbanToronto.ca, it’s not clear whether 489 King Street West will be preserved and incorporated into the new build (as was the case with a previous design). I sure hope it is though.
I have a new mission for this summer: To explore more of Toronto’s ravines.
Last week I had a fascinating conversation with Steve Heuchert of the Toronto and Region Conservation Authority (TRCA). Most developers in this city would probably cringe when they hear those words. Because often when the TRCA gets involved it means your project is about to get more complicated.
But if you take a step back and look at the larger city building equation, our ravines are a remarkable and unique feature of the Toronto area landscape.
And unless you live near one or are fortunate enough to have a home that backs onto one, I suspect that for many of us this city’s ravines are a somewhat forgotten layer of the urban fabric. We drive by them. We pass through them on the subway. But they don’t really register in the way that they should.
And so if you think about it, our ravines actually share many similarities with our laneways (alleys). We know they exist, but we could be doing a lot more to truly celebrate and integrate them into the rest of the city. They are missed opportunities.
The challenge with our ravines though is finding the right balance between preservation and increased usage. But this isn’t something that a great landscape architect couldn’t help solve.
So today’s thoughts are: How do we increase ravine awareness? How do we improve access and expand their uses? How might we craft our ravines to become an interconnected open, green, and cultural network within the city? And how do we better position the ravines as part of Toronto’s overall city brand?
If you’re interested in this topic, check out this talk that Steve Heuchert did last year. It was part of an event that Megan Torza of DTAH organized called RavinePortal.
I was recently talking to my good friend Jeremiah Shamess about the current state of development land sales in Toronto (he does this for a living) and he said something to me that I found really interesting.
He said that because the market is so competitive, you can really only win development sites in one of two ways. Either you’re willing to spend the most money or you see something and have a vision that nobody else sees.
And it was this second piece that really stood out to me because it reminds me of one of my favorite investing frameworks.
Warren Buffet is famous for saying that you should be fearful when others are greedy and you should be greedy when others are fearful. And what I’m about to talk about is really that same core philosophy.
Here’s how venture capitalist Fred Wilson put it (reiterating something that Bill Gurley said):
I saw Bill Gurley say that you can only make money by being right about something that most people think is wrong. His logic was that you can’t make money by being wrong. And you can’t make money by being right about something everyone else knows. So you have to be right about something that most people think is wrong. I really like that framework.
But this doesn’t just apply to technology companies or stocks. It applies to city building, most industries, and probably most things in life if you think about it.
If all you’re doing are things that everyone else is doing, then how can you expect to outperform? You’re going to revert to the mean.
Take, for example, billionaire Dan Gilbert and Detroit. Not everyone believes that Detroit will come back. In fact, I suspect there are probably more people who think it won’t come back, than people who think it will. Otherwise, it would already be back.
But Gilbert is unquestionably long on Detroit (via Forbes):
As you’ve likely heard, over the past four years Gilbert has become one of Detroit’s single-largest commercial landowners, renovating the city with the energy and impact of a modern-day Robert Moses, albeit bankrolled with his own money. He’s purchased and updated more than 60 properties downtown, at a total cost of $1.3 billion. He moved his own employees into many of them–12,000 in all, including 6,500 new hires–and cajoled other companies such as Chrysler, Microsoft and Twitter to follow.
If/when Gilbert proves to be right about Detroit, then he will have been right about something that most people thought was wrong. And because of that, he will no doubt make a lot of money.