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: mid rise

  • The highs and lows of mid-rise

    Last week
    was developer Urban Capital’s 5th annual “Naughty or Nice” party. It’s obviously a holiday tradition of theirs and it has become a tradition of mine to attend. Judging by my vast collection of photo booth photos, there’s a chance I may have been to all of them. It’s easily one of the best holiday parties in the business.

    One of the things that Urban Capital does at its annual party is release its annual magazine. And this year I was fortunate enough to be invited to write a piece for it on the highs and lows of mid-rise development. Put differently, it’s about the challenges facing developers who want to build mid-rise, but also why they’re pretty great for cities.

    If you’d like to have a read, you can do that online by clicking here. And if you’d like to receive a hard copy of the magazine, I can make that happen as well. Tweet at me. Alternatively, you can also pick up the magazine at any Urban Capital sales office.

    I deliberately tried to make it so it wasn’t your typical real estate puff piece: condos are great, yada, yada, you should buy one from us. I tried to make it an intelligent piece on some of the real challenges facing mid-rise developers. And that’s what Urban Capital wanted as well. I hope you enjoy it 🙂

  • Why multi-family developers are shifting their customer focus

    One aspect of the Toronto housing market that I’ve been paying close attention to is the adoption of multi-family dwellings by both long-term end-users and families. 

    I’ve written about this before (here and here, over a year ago) and have argued that here in Toronto we are at an inflection point. Multi-family dwellings – both rental and condo – are evolving to now target these new customer segments. Whereas previously, the new construction multi-family housing market was heavily geared towards investors and first-buyers. And often it was simply a stepping stone towards a single family home.

    Now, every city and real estate market is different. And I have heard many people in U.S. cities say that Millennials are simply deferring what we saw with previous generations. At the end of the day they (or we, I’m a Millennial) are going to move to the suburbs and buy that car. The current trends we are seeing around city living and reduced driving are just that – short-term current trends.

    But I think it’s worth reiterating: I do not believe that the status quo is what’s happening right now in Toronto. And I’m sure it’s also happening elsewhere. Time and time again I speak to developers in this city who are starting to shift at least some, and in some cases all, of their focus towards end-users, families, and larger units – particularly for new mid-rise product in the “neighborhoods.”

    And if you think about it, this makes perfect sense. 

    The average price of a detached single family house in Toronto is well north of a million dollars. So when a developer brings to market a 1,200 sf family sized apartment at $600 psf ($720,000) or even at $700 psf ($840,000), that home now becomes a relatively “affordable” option in many desirable areas of the city. Particularly if you value location amenities and your time (i.e. shorter commutes) over raw quantity of space. I know I certainly do.

    I know this isn’t going to appeal to everyone. But there is a big market here. Get ready.

    What are you seeing in your city? Let us know in the comment section below.

  • Project Profile: Cabin at 45 Dovercourt

    image

    Last month,
    Curated Properties submitted a
    rezoning and site plan application for a 6-storey, 25-unit building at 45
    Dovercourt Road in Toronto. The project is known to the market as Cabin and you
    can register for it now.

    The project
    immediately caught my attention (because of its design, because of its
    branding, and because I like the work of Curated), so I decided to dig in
    further and get a copy of their architectural drawings. Development
    applications and their supporting documents are all public. Anyone can request
    a copy. But the city isn’t great at making this known.

    Since I’m excited
    to see more of these small scale urban infill projects in the city, today I
    thought I would highlight some of its key features and some of the things that
    are being proposed in order to make a project like this work.

    The Homes

    First of
    all, 100% of the suites are 2-storey. 76% of the suites are also 2 bedroom or
    larger.

    The result
    is that the project is essentially a series of townhomes stacked on top of each
    other. I suspect that this will appeal to more end-users as opposed to
    investors. Hopefully, it will also attract more families to the area.

    Here’s the
    third floor plan:

    image

    You
    probably can’t see it, but all of the suites are marked as “Level 1”, obviously
    indicating that there’s more than one level.

    Also worth
    mentioning is the notch or cut out on the north side of the building. This is
    what makes the 2 suites in the middle of the floor plate possible. In order for
    them to have windows, they need to be setback from the (north) property line.
    It also means those suites get terraces.

    The Parking

    Turning to
    the ground floor plan, it’s interesting to see that they are proposing 8 triple
    car stackers that will be accessible off the rear laneway (right side on the plan below). That equates to 24 parking spaces in the building (8 bays x 3
    cars per stacker).

    image

    On small
    urban sites like this one, it can be very difficult to accommodate parking. So
    it’s inevitable that we will see more parking stackers in the city and a continual
    reduction in parking minimums.

    The Construction

    Finally, I
    have been told that this project is expected to be framed in wood, as opposed
    to reinforced concrete, which is more typical of condominiums in Toronto.

    As of the
    beginning of this year (2015), the
    Ontario Building Code was modified to allow wood-frame buildings up to 6
    storeys
    . Before this change, the highest you could go was 4 storeys.

    This change
    was done with the intent of reducing construction costs so that it becomes more
    feasible to develop smaller infill sites such as this one. So expect to see
    more of this.

    I know that
    a lot of people would like to remain in the city even when they start having
    children. But it’s becoming increasingly difficult to find affordable low-rise
    homes. And not everyone wants to live in a high-rise tower. 

    That’s why I think
    we will see more, not less, low-rise and mid-rise infill projects like Cabin.
    If you’re interested in this topic, also check out a post I wrote called 3
    stages of intensification
    .

    The rendering at the top of this post is from Curated Properties and the
    drawings are by RAW Design.

  • Survey: Homes for families

    I was looking through real estate listings this morning (which I do quite often out of sheer interest), and I started noticing a number of 3 bedroom condos (here in Toronto) that were priced under $1 million.

    Now, this is a lot of money now matter how you slice it. But given that the average price of a detached home in the city is now well over $1 million, I can’t help but wonder if condos will become more accepted as the family home.

    I’ve written about this topic a lot, because it’s something I’m interested in and I like living in a condo. But I’m seeing far more of my network looking for a low-rise house upon marriage/kids than for a bigger apartment/condo.

    So today I thought I would run a very quick survey. There are only 3-4 questions depending on how you answer and it basically revolves around housing type and whether or not you have or plan to have a family. I also ask what city you live in because I think this will have an impact on preferences.

    If you have 30 seconds, I would love to get your input and I’m sure the ATC community would be interested as well. The responses are anonymous, but I’ve made them public. Click here if you can’t see the survey below.

    [googleapps domain=”docs” dir=”a/brandondonnelly.com/forms/d/1wyMguhSlNv6pe6DS3duyJUqpzjImHI_KiYer1CKTVxo/viewform” query=”embedded=true” width=”640″ height=”600″ /]

  • 3 stages of intensification

    image

    We all know that the Greater Toronto Area is growing and intensifying at an incredible pace. In fact, last year the region set a record with 25,571 new condominium units completed.

    If you listen to industry experts, such as George Carras of RealNet, they’ll tell you that this level of intensification — which usually means condominiums — is really a decade in the making. That’s when the government set out to explicitly encourage this type of growth.

    But in the decade since that decision, we’ve seen both government and the market evolve in terms of what that intensification should look like. It started out with a largely high-rise building typology. Tall buildings were to be allowed in the downtown, as well as in specific growth nodes throughout the region. But for everything in between — the officially designated “neighborhoods” — there was to be no development.

    This is what I’ll call the first stage of intensification.

    Then, we started to think about mid-rise intensification along the avenues. Most of these “avenues” (also an official term) cut through those same stable neighborhoods, but the main streets were seen as an appropriate place to allow additional growth. It makes perfect sense and so guidelines were created to help dictate what this new building typology should look like.

    This is what I’ll call the second stage of intensification.

    And it’s one that I’d argue we’re currently living through with new mid-rise projects like DUKE in the Junction (TAS project), Kingston&Co in Kingston Road Village (another TAS project), Abacus Lofts on Dundas West, and The Hive in Etobicoke. These are all mid-rise buildings going up in established neighborhoods.

    With the recent decision to also allow wood frame buildings up to 6 storeys in Ontario (instead of 4), we’ll probably see an even greater surge in mid-rise buildings once the private sector gets its head around this shift.

    So what’s next?

    I think it’s inevitable that we’ll eventually see low-rise intensification within our established neighborhoods. We started by avoiding them altogether, and then deciding that it was desirable to build along their periphery. But as demand for urban housing continues to increase, I believe it’s only a matter of time before we start to loosen the reins on our single family neighborhoods.

    Some of you might be thinking that this is going to be a bad thing, but I actually think the opposite. Projects such as Vancouver’s Union Street EcoHeritage prove that it’s entirely possible to intensify existing neighborhoods through sensitive and beautiful infill interventions. And of course, let’s not forget about laneway housing.

    The fact of the matter is that Toronto has already been intensifying its neighborhoods for a very long time — likely since the beginning — by converting single family homes into duplexes, triplexes, and other multi-family dwellings. We just haven’t been doing it in any sort of structured way.

    I don’t know when this will change, but I think it’s only a matter of time. And that will be the third stage of intensification.

    Image: Flickr

  • Toronto already has a laneway community on the islands

    image

    It feels really good to have shared the details about my laneway project yesterday. It’s a project I’ve been working on for a few years now, and – though I’ve spoken to architects, engineers, and city staff about the project – I hadn’t really gone public with it. And I’m happy I did.

    I got a lot of great feedback from the twittersphere. In fact, I didn’t receive one negative comment about the idea of a laneway house in Toronto. Everyone seemed to think it was a great idea and many expressed their dismay with the city’s reticence to formally support them.

    I also received a number of encouraging emails, one of which was from a resident of the Toronto Islands. And he raised a really great point: Toronto already has a very successful community of laneway-like houses and it’s called the Toronto Islands.

    The streets are no wider than the laneways we have here on the mainland (and even smaller in some cases) and yet there are about 250 houses serving a population of roughly 750. He went on to mention that they even have “downsized garbage trucks”, which are used to navigate the small, car-free streets of the Toronto Islands.

    What this reinforces is that our aversion to laneway housing is not because we can’t figure out the logistics of how to service them. We can and are already doing that. If we can figure out how to do that on the islands, I’m pretty sure that we could also figure out how to do it on the mainland. 

    So what this really comes down is that there isn’t the political will to make this happen. And there isn’t that will, I’m guessing, because there’s a fear of upsetting the established neighborhoods. That’s why Ontario’s Places to Grow Act (2005) was deliberate in concentrating growth in specific areas of the city – it meant that we could say that the rest of the city would receive little to no growth.

    We’ve since revised that position with the push to intensify our Avenues with mid-rise buildings. But just as we went from high-rise to mid-rise intensification, I think it’s only a matter of time before low-rise intensification starts to also happen.

    I firmly believe that the demand is already there for laneway housing (the Lanehouse on Bartlett pretty much sold out in one evening). It’s simply a matter of now figuring out the supply side of this equation.

    Image: Ward’s Island (Toronto Islands)

  • Dimensioning pedestrian happiness

    The area that stretches between the property line on one side of a street and the property line on the other side of a street is called a public right-of-way here in Toronto. It may be called something different in other cities and countries.

    In the example below (taken from Toronto’s Avenues & Mid-Rise Buildings Study), it includes the sidewalks, the car lanes, and the streetcar lanes. But it could also include other public elements. In this instance, the buildings on either side of the street are assumed to be built right up against their property lines.

    ROWs obviously serve an important public function. But their size also has important urban design implications. As a pedestrian, it feels different to walk on a narrow street than it does on a broad street.

    The width of a ROW can also be used to inform what the preferred height of the buildings along it should be. In the example above, they’re talking about a 1:1 relationship between the width of the ROW and the preferred height of the buildings.

    Given their importance, I thought it would be interesting to share this map of Toronto (dated 2010) showing ROW sizing throughout the city. The mustard colored lines in the core of the city represent 20 metres, the red lines 36 metres, and the purple lines 45 metres or more. The rest of the colors fall somewhere in-between. For the most part, the purple lines represent highways, although there are a few other instances of purple.

    What’s interesting – but not surprising – to see is how we basically kept expanding the size of our ROWs as Toronto grew outwards. This was obviously to make more room for cars on the road.

    But the other, perhaps more interesting thing about this map, is that it could also serve as a guide to pedestrian happiness. The mustard/yellow lines are where it’s most enjoyable to walk. And the red and purple lines are where it’s least enjoyable to walk.

    If you’re from Toronto, give this framework a try and see if it holds true.

  • Opening the doors to a presentation center

    This past week we opened the doors to the presentation center for Kingston&Co Condominiums. It was pretty chaotic leading up to the opening, but everything worked out and I think our party was a great success. 

    These early events are an opportunity for the media to see the project and the presentation center, and for the project team to enjoy some of the fruits of their hard work. I think those times are important. When everyone is moving quickly to meet deadlines, sometimes it’s easy for things to get impersonal. So it’s nice to be able to sit back, have a glass of wine, and tell someone that you appreciate all of their hard work.

    Below is another photo from the event. I’m the second from the right, wearing a sweaty pink shirt. I had planned to go home and change before the event, but I instead got wrapped up moving things around and getting the presentation center ready. On a related note, there’s a tree trunk beside the sofa in the reception area that weighs almost 400 pounds. If you can lift it on your own, or even just move it on your own, I’ll buy you a round of drinks.

    If you’d like to learn more about Kingston&Co, click here. And if you get a chance to check out the presentation center, make sure you tweet me and let me know what you think.

    Images: BuzzBuzzHome

  • The future of Vancouver’s West End

    Spacing Vancouver recently published an interesting look at Vancouver’s West End neighborhood. And it led me into a deep dive of the neighborhood’s recently adopted Community Plan (November 2013). So today I’d like to talk a bit about the neighborhood and also their plans for managing growth over the next 30 years.

    Officially established in 1969, the West End spent the next 3 decades as the most densely populated area of Vancouver. But starting in the 2000s with the development of high-rise condo towers in neighbouring areas such as Downtown South to the southeast and Triangle West and Coal Harbour to the northeast, the West End lost this position. Today it’s the 4th most densely populated neighborhood in the city.

    The bulk of the housing (77%) is in the form of apartments with 5 or more storeys. And 81% of residents are renters. This is well above the city average of 52% and is likely a reflection of the neighborhood’s younger demographic (25-29 years old is the largest segment) and its position as a landing ground for new Vancouverites.

    But as a large central area with exceptional access to natural amenities, I would imagine that development pressures are and will continue to be significant. To plan for this growth, the city wants to intensify the central areas of the neighborhood with low-rise and mid-rise form and the periphery with high-rise towers. And already this is happening with developments such as the 62-storey Shangri-La Hotel.

    Here’s an image depicting their 30 year vision:

    But what stands out for me in the Plan is Vancouver’s continued commitment to laneway intensification. The Plan refers to it as “Laneway 2.0” and they specifically mention the opportunity to redevelop the West End’s wide laneways with “ground oriented infill housing.” Below is an example of how this could be done on a small residential lot, but the Plan also includes images for how the same might be accomplished on underutilized apartment building sites.

    Laneway housing is a topic I’ve written about extensively on ATC. Toronto is absolutely behind on this. And as I’ve argued before, we need to be looking at urban intensification across all scales, from low-rise to high-rise, if we want to create inclusive and vibrant cities. With the West End Community Plan, Vancouver seems to be doing just that.