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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  • 3 things about Le Corbusier’s Cité Radieuse

    I have written about Le Corbusier’s Cité Radieuse in Marseille many times before on the blog. It is one of the most influential multi-unit buildings of the 20th century. For better and for worse, it inspired a generation of architects. But up until this afternoon, I had yet to actually see it in person. Now that I have, here are 3 takeaways.

    The corridors throughout the building were thought of as “streets” in a vertical village. Because of this, each street had a mailbox and each front door came equipped with an elaborate delivery system. The large curvy thing pictured above was for general deliveries (mostly food I’m guessing). And the smaller door below was for ice block deliveries (i.e. refrigeration). In both cases, these doors could be accessed from inside the kitchen.

    The two “streets” in the middle of the building were dedicated to commercial uses. And by being in the middle of the building, they were equidistant from residents living either above or below. I was told that when the building first opened in the 1950s, these streets were actually quite successful — filled with everything from bakeries to grocery stores. So you can imagine people running deliveries up and down to the other streets. But that quickly fell off as the retailing landscape developed in Marseille and in France. Today, this portion of the building houses mostly offices, art galleries, and specialty boutiques. Though there remains a widely-used 21-room hotel (pictured above).

    To fully appreciate what the Cité Radieuse meant for housing in France, you kind of have to imagine what the rest of its stock was like at that time. The introduction of duplex and dual aspect units with modern kitchens and bathrooms and with views of the sea, represented meaningful progress at the time. But it is interesting to see how much ceiling heights have changed over the years. They’re really low here — well under 8 feet. And that is probably its greatest Achilles’ heel today.

    If ever you happen to find yourself in Marseille, I would encourage a visit to the Cité Radieuse. Many of the things we do today started in this building. And there are some other ideas here that might also be worth bringing back.

  • Laser distance metering Le Panier in Marseille

    I usually always have a laser distance meter in my bag. I use it when I’m on construction sites and I need to confirm important dimensions. But they can also be useful when you’re traveling and you want to appear as nerdy as humanly possible to the locals.

    This is a typical older street in Le Panier area of Marseille, which is the oldest part of the city in probably the oldest city in France. Greek settlers colonized this area around 600, and at that time it was called Massalia.

    There is one major street in Le Panier — la rue de la République — which will make you feel like you’re in Paris. It was pierced through in the late 19th century, around the same time that Paris was doing its large-scale urban renewal things.

    But there remains lots of examples of what you see here: streets that are 12 to 13 feet wide from building face to building face. This is wider than your typical Toronto condo living room, but not by much.

    There are, I guess, sidewalks on these streets. But most of them tend to be taken over by potted plants and other urban accessories. Everyone who uses these streets really just has to figure out how to share them.

    It would be illegal to build this close and compact in most modern cities. Part of this is, of course, because modernity used to view this kind of urban form as being unhealthy and generally undesirable. Humans needed light, air, and space.

    This is true. But we also like intimate urban spaces that put people first.

  • Out of office

    I have been fortunate to be able to travel a fair bit this year. But the vast majority of that travel has been me working remotely. In my mind, that means a few things: (1) I remain committed to staying on top of and clearing out my inbox each day; (2) I still take all meetings as if I were 100% in the office (which is my preferred way to work); and (3) I don’t put on an out-of-office reply. That’s the signal that you should expect a response. Today, however, is not one of those days. I just finished putting on my out-of-office reply and that is me capitulating against the looming email torrent.

    On past vacations I have done things like turn this blog into more of a photoblog. I will probably do a bit of that, but my plan this time around is to concoct some combination of a photoblog, travel blog, and foreign city building blog. Travel is a great way to learn from other cities, and I will endeavor to share some of what I find in France and Sicily. (Sicily is in Italy, but not really, right?) Some of you seem to get a little grouchy when I stray from our regularly scheduled programming on this free and personal blog. So if this doesn’t sound all that appealing, you may want to check back in October.

  • There’s an apartment amenity for that

    This afternoon a few people from our team toured two of Fitzrovia’s recently completed rental apartment buildings here in Toronto. For those of you who may not be familiar, Fitzrovia is a relatively young company, but they have quickly become one if not the most active rental developers in the city. They are also ushering in an approach to purpose-built rentals that is more common in the US, but that is still fairly nascent in Canada. Part of this has to do with the fact that Canada took a few decades off from building rental apartments and instead focused on condominiums.

    One of the first things you’ll notice is that they have programmed all of our lobbies with a coffee shop and bar called No. 10 Dean. This is their own brand. They operate it. And it serves as both an amenity for residents, as well as a cafe for the general public. This really helps to animate their lobbies, particularly at The Waverley, which is situated next to the University of Toronto and feels more like a co-working space in a cool boutique hotel than the lobby of an apartment building. I like this idea a lot. But it’s also an idea that is a lot easier to execute in an apartment building than in a condominium building.

    Some of their other usual amenities include a rooftop pool (called LIDO), a gym (called The Temple), a signature amenity terrace (called STOA — which I’m assuming is a Greek architectural reference), and a pet spa (called Beauty for the Beast). When we went through this afternoon it was raining pretty heavily, but the pool was so great that I still felt a deep urge to pose and take multiple selfies. That’s how you know it’s doing what it’s supposed to. But perhaps more importantly, these amenities are all consistent brand offerings. Go into any Fitzrovia building and you’ll find a LIDO (pictured below).

    Generally speaking, real estate companies usually aren’t as good at driving their brands in the same way as other consumer-facing companies. So it’s great to see this kind of design-forward and consistent brand offering being developed here in Toronto. Thanks for the tour and for hosting our team, guys.

  • We’re running out of land — or are we?

    The headline, here, is that “the US is running short of land for housing.” But if you read the article, you’ll see that the headline should probably read, “the US has land-use restrictions in place that make it unnecessarily difficult to build enough new housing.” Here’s an excerpt:

    Asking prices for homes in these new communities [the exurbs of Tampa] go as high as $900,000, in part because the land underneath is so valuable. That has a lot to do with land-use regulations.

    Tampa’s zoning rules prevent developers from building anything larger than a single-family home in much of the city. When officials for Hillsborough County, which includes Tampa, adopted zoning regulations in 1950, they said the measures were necessary to prevent overcrowding and traffic jams and would preserve the neighborhood character, all “with a view to conserving the value of buildings,” according to the regulations.

    If all you can build are single-family homes, then you’re going to need a lot more land compared to if you were allowed to build a bit higher and/or a bit denser. But it is a good way to ensure that supply remains somewhat scarce and that one is faithfully “conserving the value of buildings.”

    It is, however, worth mentioning that we have invented ways to use land more efficiently. The population density of Hillsborough County is somewhere around 1,200 people per square mile. The population density of Paris, on the other hand, is over 50,000 people per square mile.

    Somehow people still enjoy Paris.

  • Koto open day at Fritton Lake, UK

    I have written about Koto a few times before (check here and here). They design and fabricate beautiful modular homes and cabins that are designed to connect you back to nature.

    One location where you can already find these cabins is on Fritton Lake, which is about 2 hours and 45 minutes outside of London. The way it works is that you buy a plot of land in the Fritton Lake community and then you choose which Koto home you would like.

    There are two models available — Ki and Miru — and they can be customized as either 2 or 3-bedroom cabins. Apparently it then takes somewhere between 4 and 6 months for your new cabin to be fabricated and delivered to site.

    Prefabrication is, of course, not a new idea. But it does feel like we are finally starting to see some meaningful traction. As recent as 2016, only about 2% of new single-family homes constructed in the US were prefab or modular.

    But today it’s perhaps easy to imagine a world where only the top end of the market builds on-site and custom. Koto is also evidence that these homes can be just as, if not more, beautiful and sustainable.

    FYI: The Koto team is having an “open day” on Saturday, October 1, 2022 at Fritton Lake. If you happen to be in the area and would like to check out the cabins (and do things like swim in the lake), drop them a note to book a spot.

    Image: Koto

  • Super-prime home sales in New York and London

    Here’s what I can tell you this morning: Real estate development is a bit more fun when you don’t have to constantly worry about supply-chain issues, access to labor, high inflation, and regularly increasing interest rates. That said, if you just want to buy a super-prime property in one of the world’s preeminent global cities, things seem to be just fine:

    According to FT, both New York and London have continued to see a rise in super-prime sales this year and both have seen more of these sales in the first 8 months of 2022 compared to all of 2019 (before the pandemic). Note: These charts are showing home sales greater than US$10 million and greater than £5 million, respectively.

    On top of this, many or most of these buyers are, apparently, still able to access financing at LTVs of 100% (i.e. no money down). For what it’s worth, there is a London mortgage broker quoted in the article saying that he has arranged more 100% mortgages this year than in his entire 20-year career. Turns out that the best way to ensure access to debt is to not need it in the first place.

    Charts: FT

  • How many days a week are you in the office?

    https://twitter.com/donnelly_b/status/1573283131637243904?s=46&t=BA0WheQxvvK33WQw8L1xhw

    At the end of August, our office closed for two weeks so that we could shuffle a bunch of desks around. During that time, we all worked remotely. I spent one week working from home and one week working from Utah. Being in Utah in the summer was, of course, a great treat. Everybody appreciates having more rather than less flexibility in how they structure their workday.

    But at the same time, being away from the office reminded me just how much I hate working from home. I hate the onslaught of calls and zooms that ensue when you’re not proximate to the people you work with. I hate being distracted by the thought that I should probably do a load of laundry. And importantly, I also find that I have less energy.

    One of the ways that extroverts and introverts are often defined is according to where they derive their energy from. The former is said to derive more of their energy from being around other people and the latter is said to derive their energy from being by themselves. Introverts need time to recharge. Of course, most people probably need both of these things. I certainly do.

    But I think this is an important consideration as we all debate work-from-home policies. I enjoy being in the office. And I can tell you that our team overwhelmingly does as well. People were starting to get antsy during our two week hiatus. But not everybody feels the same way, which is why I wasn’t expecting this (the above) Twitter poll result.

    At the time of writing this post there were fewer than 200 responses. But even with limited data points, I was expecting more of a bell curve, with the majority of people doing some sort of hybrid thing. That is not the case here. The results were fairly equal with 5 days a week having a slight edge. My sense is that WFH is continuing to wane.

    But I don’t know, you tell me: What is your work routine right now and what would you consider optimal?

  • Modular construction appears to be on the rise in Philadelphia

    This Philadelphia Inquirer article is behind a paywall, but I can tell you that it speaks to the city’s increasing use of modular construction for infill apartment buildings:

    Building modularly can save 20% on total construction costs, he said. Projects can be constructed in half the time, and rental revenue comes in sooner. Workers build apartments in pieces in a factory as others lay the foundation. Factory work doesn’t have to pause for inclement weather.

    Alterra Property Group has found that modular construction is cost- and time-effective when it builds between 100 and 500 units and between four and six stories. Under that, building on-site is more efficient, Addimando said. Above that, builders can run up against building code restrictions.

    Consider this recently completed project, called LVL North:

    • 1.5 acre site
    • Site acquired in February 2020
    • Construction commenced in June 2020 (was it already entitled?)
    • Over 500,000 square feet
    • 7 storeys
    • 410 market-rate apartments
    • Two levels of commercial spaces
    • Over 300 parking spaces in a two-level below-grade parking structure
    • Construction completed in 24 months (it’s currently being leased up)

    I am impressed by how quickly this was erected. Here in Toronto, it would likely take more than 24 months just to get through the rezoning process. Granted, a site this big in a central location next to transit would also likely beget multiple tall buildings.

    But this form and scale of housing seems to be working for Philly. It is allowing the city to both build quickly and to experiment with emerging construction methods.

  • Virtual artists are now being signed to digital record labels

    https://twitter.com/CyberBrokers_/status/1572224061119533056?s=20&t=qZlgoHSqui9npg4jr1fzLg

    One of the most interesting things about NFTs is that some, but not all, come with very permissive licensing. What this could mean is that, as a holder, you are free to do whatever you would like with your NFTs, including creating businesses on top of them or using them for other commercial purposes. This is fascinating to me and I like NFT projects that adopt this open approach.

    In the past, we have talked about Bored Ape Yacht Club owners creating things like restaurants on top of their NFTs. But here is another more recent example: An NFT from the CyberBrokers collection has just been signed to a Web3 record label called Player Zero. This is the company’s first “Animated Virtual Artist”, and her inaugural album is available for streaming here, as well as from places like Spotify.

    This might sound kind of crazy if you aren’t following the crypto space. But is it really? We already have virtual influencers with millions of followers, so why can’t we have virtual pop stars being signed to digital record labels?

    I don’t know what this will ultimately mean for the holder of the above NFT, but imagine a world where the owner automatically receives X% of all the proceeds produced by the virtual artist. Now all of a sudden you have a cash flow stream that can be evaluated using traditional finance methods and an asset that can be valued and traded.

    Full disclosure: I own multiple CyberBrokers.