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: development

  • Toronto condo market outlook

    BNN Bloomberg just published this article on the Toronto condo market. It is based on a roundtable discussion that was held at their Toronto office last week with Jim Ritchie of Tridel, Jared Menkes of Menkes Developments, Shamez Virani of CentreCourt, and Jane Renwick of Diamond Kilmer Developments.

    The overarching theme is that, after a couple of frenetic record setting years, the market should settle down in 2019, which is likely a good thing. Hopefully that will also temper construction cost inflation. We have been seeing double digit increases over the last few years (hence some of the cancelled projects).

    But as Jared points out, the fundamentals here are still strong and there are a number of supply constraints creating upward pressure on pricing:

    Jared Menkes, executive vice president of high-rise residential at Menkes Developments was unwavering for the future. “There’s a lot of red tape that’s slowing down bringing more product to market,” Menkes said. “I promise you, pricing is going up.”

    For the rest of the article, click here.

  • One Delisle unanimously supported at Design Review Panel

    One Delisle was at the City of Toronto’s Design Review Panel today where it received unanimous support. For those of you who may not be familiar with the process, at the end of every DRP session the panel members – who are all independent design professionals – vote on the project. They can support it, support it with conditions, or they can not support it and send it back for a redesign. One Delisle received 100% support.

    There were a number of positive comments around the need for more projects like this, and for better design in general, here in Toronto. That was really nice to hear. I also liked the comment that One Delisle feels like a tall building that one might find in London. And since every tall building in London has an endearing nickname – Gherkin, Walkie-Talkie, Cheese Grater, and so on – this too deserves one. 

    So let’s find a name. I have one in mind, but I’d love to hear from you in the comment section below.

  • Photoblog: Sunrise at Ten York

    This morning I watched the sun rise from the the roof of Ten York Condominiums, some 735 feet up. This is what that looked like (the sky initially had a purple hue to it):

    It was cold as all hell, but sometimes you have to work for your photos.

    Some of you may also remember that I wrote about this building a few months ago. Tridel, the developer, is calling the project its first “smart condominium.”

    Regular scheduled programming will resume tomorrow.

  • Sidewalk Toronto releases draft site plan for Quayside

    Yesterday Sidewalk Toronto released its draft site plan for Quayside. Here’s what it looks like:

    There’s a big emphasis on people-first streets and on the public realm. I like the idea of a waterfront plaza at the tip of the Parliament slip and of a floating walkway bridge to Promontory Park (bottom right hand corner of the above image).

    There are also a number of more enclosed pedestrian laneways and courtyards, which I am sure will result in more favorable microclimate conditions. That matters, especially on the water.

    Here are some high level project stats:

    • All mass timber construction
    • Five “sites”
    • Buildings ranging from 3 to 30 storeys
    • 68% residential (40% of the residential will be below-market, with 20% being affordable and 5% being deeply affordable)
    • 20% commercial
    • 15% flex space (retail, production, arts, community)
    • ~2,500 residential units

    A full copy of the draft site plan can be downloaded, here.

    Image: Sidewalk Toronto

  • Increasing housing supply in Ontario

    The Government of Ontario is currently working on a Housing Supply Action Plan that they hope will address “the barriers getting in the way of new ownership and rental housing.”

    Through initial consultations, they have already identified 5 key themes (my words below):

    1. The approvals/entitlement process for new housing is too slow
    2. There are too many restrictions on what is allowed to be built (that is, we should be encouraging more “gentle density” and “missing middle” type infill)
    3. Development costs are too high
    4. Tenants need protection; regulation is making it increasingly difficult to be a small landlord
    5. Overall housing innovation

    The province is also looking for public input and is currently running this online survey. It is open until January 25, 2019. And I would encourage all of you to complete it and help shape the action plan.

    My understanding is that the plan should be ready by Q2-2019.

  • The tallest residential building in the world

    Earlier this month, Extell Development Company announced the launch of sales for its Central Park Tower – which it is calling “the definitive New York skyscraper”, as well as the tallest residential building in the world. 

    The project is located on Billionaire’s Row in NYC and it will be 1,550 feet tall when completed. That puts it well into supertall territory.

    According to Curbed, the smallest apartments start at 1,435 sf and the largest will be an estate in the sky at around 17,500 sf. 

    The projected sellout for the project is, or at least was, $4 billion back in 2017. That will set all sorts of records upon completion. At the time of the above filing, the average price was pegged at $7,106 per square foot.

    If you’d like to read up on the project’s capital stack, you can do that here. And for those of us who are used to having to pre-sell condos before digging, you may find it interesting to know that this project started construction in 2014.

    I wonder how much a parking spot costs (assuming there is even parking).

  • BIG’s IQON in Quito

    BIG just announced its first project in South America. It is a 33 storey residential building in Quito, Ecuador. When completed, it will be the tallest building in the city. The developer is Uribe and Schwarzkopf. 

    Here are a couple of other images:

    The building is made up of “concrete boxes” that, when rotated, create terraces for the apartments. On one corner of the building the apartments are “through-units”, meaning they have two exposures. In this case, it is north and south.

    While different, we are starting to see some similarities across BIG’s projects, which isn’t meant as a criticism. I am thinking of Telus Sky, Vancouver House, and even KING Toronto. 

    They are, at least partially, about expressing the individual apartments and creating opportunities for outdoor spaces. This also serves to break down the overall scale of the building.

    What do you think of the project?

    Images: BIG

  • Japan’s solution to housing affordability

    image

    There’s a debate among urbanists as to the full impact of housing supply on overall affordability. But it should make intuitive sense that as new people move to a city and as new jobs are created, there will be a need for additional housing. Here is an excerpt from Vox citing a recent FT article talking about how Japan may have figured out the solution to rising home prices:

    The reason, argues Financial Times writer Robin Harding, is that Tokyo does a better job of allowing housing supply to keep up with housing demand. In 2014, Tokyo issued permits for 142,417 new housing units. In contrast, the entire state of California — which has three times the population of Tokyo — issued permits for only 83,657 new housing units. Little wonder that demand for housing has outstripped supply in the Bay Area.

    In the United States, local housing markets are plagued by grassroots “Not In My Back Yard” (NIMBY) activists who organize to stop efforts to build town homes and apartment buildings in their local neighborhoods. Because every construction project is located near somebody, the result tends to be that little housing gets built anywhere.

    I don’t have a copy of the FT article and I do firmly believe that supply matters a great deal, but I think there are also a number of other factors that need to be taken into consideration here. Japan has a depopulation problem. The country has lost about 1.4 million people since 2010. 

    They also have fairly insular views around immigration. They are over 3.5x larger than Canada in terms of population and yet they take in fewer immigrants each year. So I think it’s worth looking at this conclusion closely. (This is me trying to avoid confirmation bias.)

    Image: Vox

  • Cities are always changing. What’s happening in Miami Beach?

    image

    The Miami Herald has a recent article up asking: Has Miami Beach lost its mojo? While the beach will always be an immense draw, there’s concern that entertainment dollars could now be starting to favor mainland neighborhoods like Wynwood, Brickell, and the Design District. 

    Here are some of the reasons why it is believed that may be happening:

    – Structural changes to the retail landscape

    – High rents have pushed out all of the interesting and distinctive tenants

    – City is too lenient when it comes to the nighttime economy; South Beach has become a circus

    – Investors and developers are worried about the Beach’s exposure to sea level rise

    – Strips like Ocean Drive and Lincoln Road have simply completed their urban cycle and are no longer attractive and novel

    – Overdevelopment of luxury housing (curiously, there’s a preservationist quoted in the article who appears to believe that restricting development to only mid-rise will result in less luxury housing)

    Many of these points are certainly not unique to Miami Beach. We know the retail landscape is changing. But as I was reading through the article, I was once again reminded that cities are always changing – even when we try and stop them from doing that.

    There are over 900 historic buildings in the Miami Art Deco District. Most are low-rise and mid-rise. This includes the iconic Ocean Drive. And yet the above article is all about the changes that the Beach has seen and experienced over the years.

    Oftentimes we only associate change with new buildings. But architectural preservation does not guarantee any sort of urban stasis. Cities are far more complex than that.

    Image: Photo by Ryan Spencer on Unsplash

  • 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.