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.

Tag: condo

  • Junction House is a finalist in the 39th Annual BILD Awards

    I am excited to announce that Junction House is a 2019 finalist in the 39th Annual BILD Awards. The project is up for the following 4 awards:

    1. Best Signage (it was probably the neon that did it)
    2. Best Suite Design (large suite)
    3. Best Innovative Suite Design (it’s a suite from our unique 2-storey House Collection)
    4. Best Mid-Rise Building Design

    This last one is a “Pinnacle” award, but I’ll be honest in that I don’t know what that means. It sounds impressive though.

    BILD received some 850 submissions this year, so kudos to the project team: Superkül, Dialogue 38, Vanderbrand, Unique Urban Homes, DTAH, WND Associates, and others.

    We spend an inordinate amount of time on our floor plans — they are people’s eventual homes. So it’s nice to see a bit of that effort reflected above.

  • Marketing to Hong Kong

    A reader of this blog, who is based in Hong Kong, recently emailed me these photos:

    They are of a direct mailer that he received in his mailbox for a project here in Toronto.

    He sent them to me because he thought it was an interesting example of how projects are marketed to residents of Hong Kong.

    I don’t know what most of the text means, but it is clear that Canada is a brand and that the Toronto Reference Library is an important landmark.

  • 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.

  • Emma + Justin

    image

    Okay, I promise that after this post I will stop talking about the Forever mural that Ben Johnston recently completed at Junction House – at least for a little while. 

    I admittedly don’t know Emma and Justin, but I would like to congratulate them on their recent engagement at Junction House.

    Emma thought they were going to take anniversary photos, but instead Justin proposed in front of Forever. If you can’t see the embedded photo below, click here.

    //www.instagram.com/embed.js

    Forever certainly feels like the right message to me. Congratulations Emma and Justin.

    P.S. Junction House was in the National Post over the weekend. Link.

  • The [Next] Pepsi Generation

    The product matters. How big is the screen on this smartphone? How many horses does this all-wheel drive car have? And how high are the ceilings in this condo? (Some architects get grumpy with me when I call buildings a “product.” It’s so much more than that, right?)

    But here is a good reminder from Zander Nethercutt via a post he did on Medium earlier this year: People Don’t Buy Products, They Buy Better Versions of Themselves.

    The example he gives is that of Pepsi. While damn near identical to Coke in terms of its chemical composition, Pepsi was struggling until it decided to try something new. They stopped focusing on the product itself and instead starting selling the type of person you would become, if you drank Pepsi.

    These people, and this campaign, became known as the Pepsi Generation.

    We have talked about this idea before on the blog and this approach to selling is now quite commonplace. But I like how Nethercutt distills it down: Desire translates into consumption. And I want to buy a better version of myself.

    I also buy his add-on argument that social media has amplified our awareness and desires around self, because today we are so often externalizing it to the world and being instantaneously judged on it. Like. No like.

    Am I the kind of person who eats here, stays there, and consumes this?

    Photo by Christina Boemio on Unsplash

  • Plus atelier

    This morning I went through some of the floor plans for King Toronto, which are now up on BuzzBuzzHome. In case you’re wondering, they are currently showing an average price of $1604 per square foot.

    Here is a 1 bedroom + atelier:

    And here is a 2 bedroom + atelier:

    Right away you’ll probably notice a few things. 

    There are no dens in these plans. They have been replaced with ateliers, which sounds cool. I want my own atelier where I make things. But it may also be a clever way to get around calling them studies or nooks.

    A lot of people in the industry have been commenting on how they’ve included the exterior living space in the calculation of total area. That seems logical to me, especially for a project like this where the terraces form such an integral part of the architecture.

    The other thing I noticed is that the buildings are, actually, being referred to as mountains. This has been part of the project’s design narrative since the beginning. So I like the consistency. The above plans are for suites within the “east mountain.” 

    But what I wanted to ask all of you today is whether you find the addition of a 3D plan helpful. It’s obviously not new, but it is still fairly uncommon, at least in this market. Do you think it’s worth it?

  • Canadian minimalism

    I have one more note to share this week about Junction House and then I promise we’ll be back to regular scheduled programming. Below is a copy of the press release that went out yesterday afternoon. It includes a few more renderings for the project.

    ————————————

    October 11, 2018 (TORONTO) – After unveiling plans for a Studio Gang-designed tower at Yonge and St. Clair earlier in the summer, Slate Asset Management enters the fall market with a new mid-rise condo offering in the Junction. Designed by acclaimed Canadian architects, superkül, and emerging local interior design firm, Dialogue 38, Junction House further solidifies Slate’s approach of leading with design and city building when it comes to residential development.

    “We invest in designers because we believe in design innovation,” says Brandon Donnelly, VP of Development for Slate Asset Management. “For us, good design moves beyond aesthetics and actually solves problems and creates value for people. We want to empower each of our collaborators to come up with bold ideas, as well as think beyond our individual projects and consider the broader community.“

    Sited at 2720 Dundas St W, just as the road begins to bend, Junction House is conceived as a new gateway into one of Toronto’s most vibrant neighbourhoods. The ambitious design brief challenged superkül and Dialogue 38 to define a Canadian brand of minimalism that at the same time reflects the historic material palette and creative energy of the Junction community.

    “One of our inspirations was picking up on Scandinavian and Japanese approaches to minimalism, but through the lens of the Junction. What would that look like? How could we make sure our homegrown brand of minimalism is seen as approachable and in keeping with the neighbourhood?” says Donnelly. “We also really wanted to look at multi-storey suites – which eventually became The House Collection – and explore how we could replicate the single-family experience in a boutique mid-rise format,” he adds, citing the influx of families into the Junction and the need for new residential options in the city more broadly.

    “The building was designed from the inside out,” says Andre D’Elia, Principal at superkül. “We focused on the suites because, ultimately, that is where people are going to live and spend most of their time. We didn’t just design a nine-storey building, we designed 144 homes that occupy the same built form.”

    When it came to the exterior cladding, D’Elia says the focus was on reflecting the immediate context, while elaborating on the details. “We immediately thought of red brick, which is prevalent in the neighbourhood, and ended up cladding the first five storeys of the building with it. In order to add a sense of movement we staggered and angled the brick columns to play with light and shadow. We’re also introducing some old-world brick-coursing to add visual interest and mirror the local context.”

    Dialogue 38 was tapped for the interiors after Donnelly visited a café designed by the firm in the east end of downtown. “Their work is what motivated us to reach out, because it seemed to get the Canadian minimalist sensibility we were after,” explains Donnelly.

    Bennett Lo, Founder of Dialogue 38, says his approach was to focus on delivering design that would last. “We’re all influenced by trends and lifestyle, but our designs need to stand up against time. How do you produce something that is going to have immediate appeal and provide its own kind of interest, without feeling dated in a few years? The idea was to strip the design back and focus on the essentials, while at the same time incorporating aspects of the area. The suites and common areas will have smooth concrete ceilings and warm touches of wood throughout – and the lines are clean and open.”

    The nine-storey building will also feature an expansive lobby that doubles as a co-working space, as well as a gym that draws on the warm materials of the suites and common areas. Lo says the design of the amenity space is optimized to encourage active use. “We focused on the amenities that we know people use, and spent our energy crafting spaces that embody the spirit of the building. The benefit of a boutique mid-rise is the opportunity to extend your living space in to the amenity spaces, and provide moments of social engagement in the building.”

    “We’re a short walk to the UP Express station at Bloor, which can take you downtown in less than 10 minutes. That proximity gives us an opportunity to have a dialogue between the Junction and the rest of the city. The proposed sign marks the Junction’s location and lets you know where you’re going, but also, where you should be,” says Donnelly.

    Junction House offers 1, 2, and 3-bedroom suites, as well as its signature House Collection, ranging from 500 sq. ft. to over 1,500 sq. ft. and starting from the $400s. To register visit: JunctionHouse.ca

    Press Contact:

    Vakis Boutsalis, kg&a

    Vakis@kga-inc.com / 416 537 0954 / 416 578 1741

    About Slate Asset Management L.P.

    Slate Asset Management L.P. is a leading real estate investment platform with over $6.0 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly-traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm’s careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a proven ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.

  • A video and some art

    We made a video for our Junction House project. If you can’t see it embedded below, click here. You may have already seen some of the cut-downs on my socials, but this is the full version.

    [vimeo 293178524 w=640 h=300]

    The stickers under our projecting Junction House sign box irk me, but otherwise we’re all really happy with the way the video turned out. We wanted it to feel real and authentic.

    I am also thrilled to announce that we have partnered with a few local artists for this project. 

    The first is Leeay Aikawa. She is a multidisciplinary artist who moved to Toronto from Japan in 2003 and now works and resides in the Junction. We’re excited to have the opportunity to exhibit her work. You’ll find it in our “sales gallery” when that space opens.

    The next artist will remain a secret for now (though that’s a hint). Stay tuned to the blog and the socials.

  • Reintroducing Junction House

    Today we released the above rendering for Junction House and announced that sales will begin this fall.

    144 condominium homes. A mix of 1, 2 and 3 bedroom suites, including our Two-Storey House Collection and our Laneway House Collection. Prices starting in the $400s.

    One of our partners also happened to serendipitously send me this Globe & Mail article today talking about the increasing demand for and shortage of mid-rise housing:

    “The market is substantially undersupplied in mid-rise,” said Mr. Hildebrand, who notes that mid-rise projects in the GTA [Greater Toronto Area] were just 31 of 2017’s new launches, accounting for 3,833 units (12 per cent of the total).

    Stephen Price, CEO of Graywood Developments, went on to say this in the article:

    “There’s a huge appetite for medium density in Toronto. Many don’t want to live in the downtown core, this buyer is more interested in being in a community and there is a greater propensity to buy larger more livable units.”

    Given the huge influx of inquiries we received today after the above announcement was made, I would say that feels right. And our focus at Junction House is very much on “larger and more livable.”

    If you’re at all interested in a new home at Junction House, I would encourage you to get on our priority list, here.

  • Unpacking the family condo

    John Lorinc has a piece in the Autumn 2018 issue of University of Toronto Magazine that is worth a read. It covers families in Toronto being priced out of the low-rise housing market and/or making the conscious decision to live in an apartment or condo.

    He raises an important question:

    The big question hovering over this generational transition is all about city-building, and whether increasingly dense metropolitan regions such as Toronto and Vancouver can figure out how to turn all those newly sprouted forests of highrises into true communities that are both affordable and appealing to the wide range of people who call these cities home.

    The reality seems to be that more people in this city – out of economic necessity and/or because of a lifestyle preference – are choosing to raise a family in multi-dwelling housing. I live in a condo and my neighbors are raising a child two doors down from me.

    I am sure that we will continue to see more of this and I am sure that we will get better at designing for families. We are trying to do our part with the 2-storey homes that we have incorporated into our Junction House project. 

    I would, however, like to respond to the underlying tone in the article that but for developers being stubbornly resistant to larger 3-bedroom apartments in this city, we would have a myriad of new condominiums filled with families.

    The reality is that there are market and structural forces (including cultural biases) that steer what gets built.

    There are affordability considerations. Larger condos cost more money than smaller condos. And that prices out many families, particularly if there are cheaper alternatives available in the form of low-rise housing. 

    The reason we appear to be at an inflection point today is because the cheaper alternatives are disappearing. (This of course returns us to the broader question of overall housing affordability.)

    There are also timing and financing considerations that likely create a supply-side bias. Most lenders require that a certain number of condo units be pre-sold before construction starts. 

    This means that, as a developer, you need people that can both afford what you’re selling and that are willing to buy three to five years out, and perhaps even longer. That can be difficult for many families.

    Lastly for this post, there’s the GST/HST New Housing Rebate in Ontario, which I have argued before on the blog could be incentivizing smaller suite sizes and could use a refresh for today’s home prices.

    All of this is not to say that we shouldn’t be designing for urban families and that we shouldn’t be focused on delivering more affordable housing to this and other cities. Those are two very important things.

    It is simply to say: there’s a lot going on here that needs to be unpacked.