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

  • We’re working with superkül

    Today I am excited to announce that we are working with superkül architects on a new mid-rise condo project here in Toronto. Details about the site and project to follow.

    I am excited about this for a few reasons.

    It should go without saying that I love their work. Check out Compass House, SHIFT Cottage, Harbord Towns, and Oben Flats Queen East.

    You may also notice that they work at a variety of different scales and have a lot of single-family / custom home work. This was important to us because one of our goals for this project is to create really great homes within a boutique building. Emphasis on home.

    The other exciting piece is that one of the founding principals of superkül – Meg Graham – was one of my professors in architecture school. So there’s a sense of coming full circle.

    This matters to me because when I became a developer I told myself that I was going to be the kind of developer that gave a shit about design and actively worked to improve the built environment.

    I guess what I’m saying is that there’s a feeling of continuity. I haven’t forgotten where I came from, which was the world of architecture.

    Image: Blok Design

  • 5 decades of condo development in Toronto

    Jeff Gray and John Sopinski just published a terrific set of maps in the Globe and Mail outlining 5 decades of condo growth in Toronto.

    Ontario first introduced the Condominium Act in 1968. The first condo project was supposedly built by Bert Winberg – founder of Rockport Group – between 1968-1969. He saw what developers were doing in California and Florida and he brought it to Toronto.

    Since then, here is what condo supply has looked like across the Greater Toronto Area:

    • 1970s – 11,697 units
    • 1980s – 30,881 units
    • 1990s – 49,503 units
    • 2000s – 103,683 units
    • 2010s – 109,497 units (up to September 2016)

    And here’s the map for the 2010s:

    We are now a condo city. For the full set of maps, click through here.

  • Residential agri-tecture

    Last month Curated Properties and Windmill launched a “residential agri-tecture” project on Toronto’s Queen West called The Plant

    The entire development is oriented around our connection to food. The building will have an interior greenhouse and an industrial style common area kitchen for food prep and events. Each unit will have micro-garden beds for fresh herbs and lattices for growing your own food.

    This is a trend that I hope we see more of going forward. Toronto developers such as TAS have been incorporating urban agricultural elements into their projects for a number of years now and I believe it has the potential to become quite common, particularly for end user buildings. 

    I grew veggies and hot peppers on my terrace one summer and there was something really nice about walking outside to harvest a salad. The hardest part for me, though, was getting enough sun exposure. Some of my crop wasn’t getting enough sun, but for whatever reason my hot peppers really thrived.

    If all of this does really catch on, I could imagine a world where condos and apartments get marketed based on the precise amount of sunshine hours they receive throughout the year. Perhaps some developers are already doing that.

  • Toronto’s first condo replacement project

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    Last month a deal here in Toronto caught my attention because of how rare it is. 

    It was the sale 39-41 Roehampton Avenue as a development site for a new (proposed) 48 storey condo tower.  What’s unique is that it’s being called the first ever “condo replacement” project in the city.

    What that means is that the existing 27 unit condo building (built in the 80′s) was bought out (along with some other adjoining lands) and it will be replaced by a new condo tower.

    In order for this to happen a minimum of 80% of the condo owners had to agree to the sale. According to Bisnow, the owners received approximately $550 per square foot, which is thought to be above market for the building (though well below market for new construction).

    I wonder how many owners voted no. If everybody had voted yes, they probably would have mentioned 100% buy-in. I also wonder if this could mark the start of a wave of “condo replacement” projects.

  • Deep thoughts on apartment layouts

    This morning while I was having a bowl of cereal and fruit, I came across this floor plan from 75 Portland Street, Toronto by CORE Architects:

    It’s a 2-storey unit with a den and double height living room on the main floor and 1 bedroom and 1 media lounge (that could act like a 2nd bedroom, but doesn’t have a window so it can’t be called that) on the second floor.

    This floor plan is a perfect example of what I was getting at with my post: The long and narrow of property affordability

    Rough rough, the overall dimensions look to be about 4.3m wide x 12m deep. It’s a fairly deep plan, which means you have to be careful how much “frontage” you give it. If the apartment gets too wide, then it could quickly become too big and potentially unaffordable.

    With the above dimensions, and if you didn’t go 2 storeys, you’d be forced to do an inset/recessed bedroom. The living room would get all of the windows. And if you made the apartment wider to accommodate that main floor bedroom, then you’d likely end up doing an inset/recessed 2nd bedroom, anyways, because of how big the unit had become. So there are trade-offs to consider.

    I’ve seen this layout first hand and I like it a lot. I think it’s an elegant solution to the challenge of deep floor plates. 

    But what do you think? It may not suit everyone’s needs, so I would be really curious to hear your thoughts in the comment section below or on Twitter.

  • Going paperless

    Last week I picked up an Epson document scanner with the hope of going paperless in my home office. I know I’m late to this party, but just hadn’t gotten around to researching and selecting the right machine. Manually filing papers is passé, time consuming, and impractical in smaller living spaces.

    Let me tell you: I am so impressed by how quickly I was able to clear off my desk and throw everything directly into Google Drive and Evernote. Now I have an empty desk and I can access any of these files from my phone. Decluttering is a great feeling.

    I am sure that many of you are already doing this, but if you aren’t, consider investing in a quality scanner with a good automatic document feeder that does double sided scans. If the process is quick and painless, you’ll be more likely to do it on a regular basis. That was my rationale at least.

    One of the things I like about living in a smaller space is that it forces you to live more minimally, which is something I am constantly aspiring to do. For me, going paperless is a step in that direction.

  • The long and narrow of property affordability

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    Lots sizes and dimensions vary from city to city, as well as from neighborhood to neighborhood. They come in many different shapes and sizes from long and narrow (common in Toronto) to rectangular or even wide and shallow. Charlie Gardner wrote a terrific post on this last year where he used Bing Maps to illustrate some of these differences. Tokyo, for instance, is shown as having more rectangular lots (32′ x 38′), whereas Buffalo is shown as having more long and narrow lots (30′ x 175′). Charlie then asks: why the prevalence of inefficient long and narrow lots? These dimensions obviously produce long and skinny houses.

    As he rightly points out in his post, there are economic reasons for this. Assuming you’re starting with deep blocks and lots, then there’s going to be a natural tendency toward subdividing and going long and skinny. That’s because the key dimension is frontage onto the street. The more frontages you create, the more front doors can be built, the more lots with access to the Mississippi can be created, etc. And that’s how you end up with 10-12′ wide row homes, which also helps to address overall housing affordability. This is not a new phenomenon.

    To further demonstrate this point, let’s look at how this phenomenon has translated into the condo market – specifically the mid-rise condo market here in Toronto. In this case street frontage morphs into window frontage (access to light). That’s now the guiding dimension. In a 1 bedroom apartment, that dimension might be something around 6-7m. That allows you to have both a bedroom and a living room with a window. So it makes for a great 1 bedroom or 1 bedroom + den apartment. (I’m ignoring corner suites for this thought exercise.)

    However, a tension often arises when you begin to look at larger suites, such as 2 bedrooms and 3 bedrooms. The obvious response would be to simply give over more window frontage. So instead of 6-7m, the suite may get 10m. This would allow you to create a split 2 bedroom apartment (both rooms get windows) with a living room in the middle. This would be considered a highly desirable floor plan.

    But up until now we’ve been ignoring the depth of the apartment. And as is the case with lot dimensions, this can have an impact on the amount of street/window frontage that gets designed. We’ve talked a lot about mid-rise buildings before on this blog and one of the challenges here in Toronto is that the 45 degree angular plane guideline produces deep floors on the bottom of the building and narrow floors on the top. Given this, it would not be unheard of to end up with 12m apartment depths on some of the lower floors.

    The counter argument would be that nobody is forcing these larger floor plates. Simply carve the building back. But the economic reality is that the margins are so thin on mid-rise buildings, that it would be inconceivable to give up this floor area. You have to max out the envelope.

    Why does this matter? Well let’s assume that the average downtown Toronto condo will cost you $857 per square foot. Using back of the envelope math, that means that the above 6m x 12m apartment (1 bedroom) could cost around $663,000 (774 square feet x $857 psf). And that the above 10m x 12m apartment (2 bedroom) could cost around $1,106,000 (1,291 square feet x $857). 

    These are obviously big numbers. Question becomes: Who will be able to afford these?

    So naturally the design exercise becomes about reducing the size of the apartments and often this means reducing the amount of window frontage. Of course when you do this, it means that one or more of the bedrooms will need to be pulled back from the front windows, which is how you end up with inset / recessed bedrooms (indirect light) and long and narrow apartments. These are often pejoratively referred to as “bowling alley suites”, but they are driven by a push for greater affordability.

    Again, this is not a new phenomenon. It is simply a trade-off that gets made. It’s the long and narrow of property affordability.

  • An interview about homogeneous towers

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    My friend Randy Gladman, who is Vice President of Development at Triovest Realty Advisors, recently sat down for an interview with Alex Josephson, who is a founding partner of the Toronto-based architecture practice PARTISANS. 

    The topic of discussion was the book that PARTISANS published last year (Rise and Sprawl) and, more specifically, why Toronto’s condominiums all look the same.

    Firstly, let me admit that I haven’t read Rise and Sprawl from cover to cover. So take what you would like from my comments. Still, the book was very successful at spurring a lot of discussion within the industry and so I’ve been getting hit with it since it was released. 

    Generally speaking, I fully support and commend their call for better architecture in Toronto. Here is an excerpt from Alex:

    “There’s a subtle but critical distinction I think some people are missing about the book: We are not criticizing condominiumization; we are criticizing condo architecture. We support density and we support condos. Toronto has become a much more vibrant city as a result of the condo boom. But the values that are driving the designs are suburban. The virulent spread of homogeneous design? That’s practically the definition of suburban. The radiator balconies I mentioned? They’re the result of a hard-wired fantasy that, as Canadians, we all have some kind of God-given right to an outdoor space, namely a back or front yard. And parking lots. Why do we still own and drive cars in the downtown core? This is a serious problem totally born out of a suburban driving mentality.”

    Where I struggle with the book is that it has always felt a bit idealistic, fanciful and, in some cases, elitist (as Randy mentions in the interview). Idealism can be great for spurring discussion (and drawing attention to a practice), but what are the root economic causes for what we are seeing? Virtually every building is a “spreadsheet in the sky”, not just the condo towers in Toronto.

    That said, the discussion does acknowledge that profit will always drive projects. And I do agree with this particular comment about building heights:

    “Anything above twenty stories is inconsequential from street level. So whether it’s twenty or a hundred storeys, I’m mostly indifferent. We are so obsessed in Toronto with height. But height equals money. If we can figure out a way to allow for more height in exchange for better design, we’ll end up with better buildings. But that kind of logic is just not embraced by the city planning culture here.”

    Click here for the full interview in ArchDaily.

  • Supply down. Prices up. Unit sizes up.

    This morning BILD released its November new home data for the Greater Toronto Area. 

    The story is one we’ve been hearing for a while. Supply is trending downward. It’s becoming harder to build. And prices are up. The average new detached house in this region is now C$1,230,961 and the average new condo is now C$493,137 (~$601 psf). Overall, average pricing is up 20% for low-rise houses and up 10% for condos, compared to this time last year.

    One of the things that I find interesting about the data is how unit sizes have recently started trending upward on the high-rise (condo) side. Below is a chart from Altus Group that shows what I’m talking about. Look at the increase from the middle of 2015 to today. The average is now 820 sf, compared to what looks to be around 770 sf at its lowest point.

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    Now, there are a number of possible explanations for this. One is that boomers are starting to sell their houses and move into condos in larger numbers, and 500 sf just don’t do. The market is starting to cater to them. Another possible explanation is that low-rise pricing has become so out of reach for many people and families, that they are now looking to condos to fill that need.

    I see both scenarios playing out in new projects today. But this second scenario, in particular, is one that I’ve been thinking about for a few years now. It’s less obvious than the boomer play. But I think of it as the market maturing. I like seeing families living right in the city and I am sure we will see more of that in the future.

  • Crazy home prices

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    This afternoon I walked the High Line with a friend of mine who seemed to know everything there is to know about new residential development in Manhattan. 

    She recently purchased a place and so she had done her homework. She was pointing out every building and telling me the price per square foot range; whether the floor plans were well designed (or if they had misproportioned rooms and awkwardly placed columns); and who the architect was. 

    Takeaway: To be competitive in the luxury segment in New York, you really need to have a name brand architect on the project. That seems to be the price of entry.

    As she was telling me about the “competitively priced” building in the low $2,000′s psf and the expensive penthouse that recently sold for $7,000+ psf, I started to wonder about historical pricing in New York. How has it trended? 

    I also told her that you could buy a really great condo in Toronto for $700 psf. She laughed at how affordable that was. It’s all about your point of reference.

    In any case, I found a research report from 2004 called: Why is Manhattan So Expensive? The story is one that you’ve heard before. It’s about the impact of land use restrictions on home prices. But it does also include some historical data on average condo prices.

    In 1984, the median price per square for a condo in Manhattan was $359 psf. It peaked in 1987 at $505 psf and then dropped back down to the $300′s in the early 90′s. That was not a great time for real estate. However, by 2002, the median price had rebounded to $606 psf. All USD figures.

    From 2002 onwards, Manhattan saw a dramatic increase in home prices. Below are two charts from Corcoran (Q3 2016 data) and Castle Avenue, respectively:

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    Toronto is obviously not New York, but’s interesting to consider that the average price of a downtown Toronto condo, today, is probably in the low $600′s psf. That’s in Canadian dollars and that’s pricing that New York saw decades ago. 

    It reminds me that “crazy pricing” can oftentimes be a psychological reaction to a pricing anchor that we previously set in our minds. It feels crazy. But is it?

    Image: Me