155 redpath condos, best investment in Toronto · 5 Future Transit Source: Metrolinx – Toronto...
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Freed/CD Difference DEVELOPED BY CONSTRUCTED BY
Transcript of 155 redpath condos, best investment in Toronto · 5 Future Transit Source: Metrolinx – Toronto...
Freed/CD Difference
DEVELOPED BY
CONSTRUCTED BY
Design has arrived in midtown.
Best Investment OpportunityIn Toronto.
DEVELOPED BY CONSTRUCTED BY
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Midtown Today
Sources: Metrolinx, City of Toronto /Global News: Top 25 Walking Intersections in Toronto (June 9, 2011), City of Toronto 2011 Living in Downtown and the Centres Survey
n Yonge - Eglinton area in midtown Toronto is an Anchor Hub in the GTA
n 21,000 people live in Yonge–Eglinton within 1 km of the station
n 16,800 jobs within 1 km of the Yonge–Eglinton station
n 76% or 15,960 people rent their homes Ages 25 to 46 – young & eligible
n $76,749 average household income with 56% single households only
n Top 2 reasons for choosing to live in midtown is access to public transit & central location
n 60% take public transit
42,680 35,585
Daily Pedestrian Count
Yonge & Eglinton Bay & Dundas
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Midtown Tomorrow
Source: RioCan Yonge and Eglinton Centre. Rendering is artist’s concept. E&OE. *The Grid December 2012.
n By 2020, approximately 23,000 people are expected to move to Yonge & Eglinton*
n Shortage of future condominium supply to meet rental demand
n Future shopping centres, retail and businesses
n New jobs coming to the area
n LRT to increase growth in both the commercial and retail as employers acquire space close to transit
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Future Transit
Source: Metrolinx – Toronto Light Rail Transit Projects
n Largest light rail transit expansion in the history of Toronto
n $8.4 billion dollar infrastructure investment
n Connects between 52 km of new light rail transit
n Strengthen economy, ease congestion, provide easy connection to subways, buses and Go Transit.
n Will run underground from Black Creek Drive to Laird Drive, and above ground to Kennedy Station.
n Once complete, will cut transit time in half along this important mid-town corridor.
n Construction is currently underway and expected completion is 2020.
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LRT Route
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Future Transit Travel Time
Estimated travel time provided by TTC and Eglinton-Scarborough Crosstown
Estimated travel time from Mount Pleasant using LRT and/or subway to:
n Downtown 15 minutes
n York University 30 minutes
n Pearson Airport 45 minutes
n Scarborough 20 minutes
Transit Score92
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Connected to Everything
Walk Score97
FUTURE DEVELOPMENT UP TO 2 MILLION SQ FT OF RETAIL & OFFICE
2 MINS FUTURE LRT
7 MINS FUTURE LRT
5 MINS
8 MINS
2 MINS
15 MINS
NORTHERN SECONDARY SCHOOL
6 MINS
15 MINS
3 MINS
2 MINS
6 MINSFUTURE LRT
2 MINSFUTURE LRT
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Yonge & Eglinton CentreRevitalized
Source: RioCan Yonge and Eglinton Centre. Renderings are artist’s concept. E&OE.
n RioCan is currently expanding the Yonge-Eglinton Centre upwards and outwards
n $100 million towards redevelopment & revitalization
n Connected underground to the Eglinton subway station and future LRT
n Major tenants include:
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Yonge & Eglinton CentreRevitalized
Source: RioCan Yonge and Eglinton Centre. Renderings are artist’s concept. E&OE.
n The Cube will feature three levels of shops surrounded by glass
n An integrated stage allows for street parties and concerts in the square
n An additional 40,000 square feet of new space to the complex
n Under construction
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#1 Highrise Neighborhood in TorontoYonge & Eglinton is Ranked by Toronto Life as the 4th Best Place to Live in the City September, 2013
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Design Has Arrived in Midtown
n 36 stories – landmark residence
n Floors 2 – 9 Podium
n 10th Floor – Tower begins
n Double height lobby
n Private courtyard with reflecting pool, green wall, water feature and fireplace
n 9th Floor pool, hot tub, BBQ area with communal dining, cabanas
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Lobby
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Interior
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9th Floor Pool / Terrace
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Outdoor Yoga Area with Reflecting Pool
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GroundFloorAmenities
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9th FloorAmenities
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Media CoverageMidtown Makeover June, 2013
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Globe T .O. S AT U R DAY , J U N E 1 , 2 0 1 3 S E C T I O N M
EDITOR: SARAH LILLEYMAN
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Connect with us: @globetoronto facebook.com/theglobeandmail
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Rudy is on line 3 with a com-plaint. “Metrolinx is bloated,”
he says sourly. “They got guyspromoting stuff that’s not evensustainable.”
This is radio, but you can prac-tically hear Doug Ford, the Etob-
icoke city councillor and swornarch-enemy of governmentalbloat, nodding angrily at thewaste of taxpayer funds.
“Was that Presto card $700-mil-lion?” Doug asks rhetorically.
“Oh,” his brother Rob inter-jects, “it’s close to a billion dol-lars.”
Now Elizabeth is on line 1,upset about a “beautiful, expen-sive structure” for bikes that wasrecently installed next to theHigh Park subway station.
“The thing must have cost abundle,” she says.
Rob listens intensely, thenmakes a promise: “If you wanna
call my office, I’d be more thanhappy to come out, see wherethese bikes are situated,” he says.“I’ll get you answers on whomade that decision and howmuch it cost – the whole nineyards.”
For the past 15 months, thebrothers Ford have spent two
hours on Sunday afternoonsmoonlighting as comically pug-nacious AM radio talk jocks, jaw-ing about key issues – fiscalrestraint, lazy politicians, the pri-macy of subways – and shining alight on important communitycauses.Radio, Page 2
POLITICS
Listen, folks: The Fords broadcast their viewsWith their radio show, Mayor Ford and Councillor Ford present an unfiltered message – and it may continue until election time
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SIMON HOUPT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Looking out the window of hisoffice in the Yonge Eglinton
Centre, Ed Sonshine sees a lot ofconstruction going on.
“This is a happening place,”says the 66-year-old chief execu-tive of RioCan Real Estate Invest-ment Trust.
In many ways, it’s the perfectvantage point for the future ofbig development in Toronto.
Yonge and Eglinton is seeing asurge of office and condo con-struction.
The number of active new con-do units in North Toronto rose166 per cent in the last threeyears, significantly outpacing thegrowth rate of the western part ofdowntown, where cranes areubiquitous.
A big part of the appeal?
“Transportation,” Mr. Sonshinesays. When RioCan bought theYonge Eglinton Centre six yearsago, Mr. Sonshine became so con-vinced that the area was set for aresurgence that he moved thecompany’s own offices into thebuilding, from their previouslocation in a King Street tower inthe financial district.Eglinton, Page 4
DEVELOPMENT
Midtown makeover
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Rich with transit, office space and a crowd of young buyers, the area known as ‘Young and Eligible’ is the new hot spot of Toronto’s condo boom. Tara Perkins talks to five developers who are betting – big – on a taller, denser future for Yonge and Eg
Where five developers intersect:Maurice Wager from ShiplakeManagement Company, ChrisSherriff-Scott from MintoCommunities, James Ritchie fromTridel Corp., Jared Menkes fromMenkes Developments Ltd., andTodd Cowan from CD Capital atYonge St. near Eglinton Ave.FERNANDO MORALES/THE GLOBE AND MAIL
VEX MEXStruggling to get a table at Playa Cabana’s new outpost? Chris Nuttall-Smith tells you why you shouldn’t bother PAGE 4
M4 G T H E G LO B E A N D M A I L • S AT U R DAY , J U N E 1 , 2 0 1 3
Restaurants’ promises matter.At Playa Cabana, the soon to
be three-location Mexican chainthat began last year with a single,impossibly popular squidge of aspot on a high-end stretch ofDupont Street near DavenportRoad, the promises are extrava-gant.
Playa Cabana’s menu is built on“artisan-made, organic ingredi-ents,” the company pledges.
In a letter to customers postedon Playa Cabana’s website andinside the doorway of that origi-nal location, executive chef andowner Dave Sidhu vows, “Inspring, summer and fall, all of ourproduce is local except for avoca-dos.”
“You will find nothing in a bot-tle or in a can in our kitchen,” hewrites. “Everything is madeentirely from scratch.”
When I spoke with him on thephone this week, Mr. Sidhu saidthat all of Playa Cabana’s meat,save the chorizo, comes fromGrandview Farms, a family-runorganic ranch near Thornbury.Impressive.
“The first Playa Cabana, we’re ina neighbourhood, Rosedale, For-est Hill, where people will pay forthat kind of stuff, right?” he said.
Yes, they will. Playa Cabanaopened a second location lastDecember on Dundas Street West,in the Junction. It is booming. Athird spot, on Avenue Road, isscheduled to open this month.And Playa Cabana’s originaladdress on Dupont Street general-ly books out of prime, 7 p.m.tables three weeks to a month inadvance; the best you can do withless than a few weeks’ notice islunchtime, 5 p.m. or 9 p.m.
Yet after four recent visits to thecompany’s restaurants, two to theDupont location and two to Dun-das West, I am mystified by theirpopularity, and deeply skepticalof all those sourcing claims.
The original location is fine. Thecooking is generally competent.The flautas, in particular – friedtortilla tubes stuffed with braisedbeef and sauced with bright salsaroja and zippy tomatillo – were ir-resistible. I’d happily eat thosewith a couple of beers and call it anight. The room is fun and filledwith the sort of people who have
expensive dogs. The music isn’ttoo loud, the house-made tortillachips and salsa are tasty. The bur-ritos were also good, and thetequilas list, with more than 50selections, is encyclopedic. One ofthe tequilas, an añejo called theGran Patrón Burdeos, sells for $90per 1-oz shot.
The tacos are sloppy, unba-lanced, with no real freshness ortexture for the most part, save ice-berg lettuce. They are fine, ifyou’ve never eaten great tacos.They sell for between $10 and $14for three of them.
The tacos at La Carnita are bet-ter-made and tastier, and costabout the same; they’re evencheaper at Rebozos and the eter-nally delicious Tacos el Asador.
The new location in the Junc-tion, decorated with old U.S. high-way markers and vintage neonsigns, is nowhere near that solid.The room itself is loud and fun;one evening recently the young,attractive staff snaked throughthe narrow space with an enor-mous white sombrero, whichthey placed on the head of abemused older man as they sanghim “Happy Birthday, Señor!”
But the kitchen in that Junctionlocation is a disaster – the foodwas mediocre at best, awful inmany cases. The mole, which issupposedly made from “27 chilesand nuts,” was dry and cakey
when I had it. It tasted a lot likeNestle Quik mixed with off-brandhot sauce. The overcooked rice onthe same plate bore the metallictang of bouillon cubes.
One night, I ordered the tacos alpastor: “The famous tacos of Mex-ico!” The menu promised porkmarinated with adobo seasoning,roasted slowly on a trompo rotis-serie, served with pineapple. Pic-ture your mother frying full-fatground beef after school anddumping in a packet of Old ElPaso spice mix, never botheringto drain the runoff. Now youknow exactly how those tacos alpastor looked and tasted.
The lobster tacos were water-logged, slack-tasting, as Mexicanas Mike Duffy doing the Macare-na. They came with juicelesswedges of lime whose pulp haddeveloped a leathery skin fromsitting out too long.
The “100% Ontario GrandviewFarms organic, grass-fed, fruit-fin-ished Wagyu beef” hamburguesathat my tablemate ordered onenight was promised medium rarebut arrived gray to its core, nearlyflavourless, notably dry – an im-pressive feat of cooking. The friestasted as though they’d beensteamed.
Are the pitchers of margaritas atthe Junction spot really madewith freshly-squeezed lime juice?The pitcher I ordered one night
tasted remarkably similar to pow-dered bar mix.
And those sourcing promises –they are a liability. One evening Iwatched a man in a Sysco uniformpush two hand trucks of boxedoxtail, frozen octopus and othergroceries through Playa Cabana’sJunction dining room. Sysco is aHouston-based foodservice dis-tributor, the world’s largest. It isthe restaurant-supply equivalentto Walmart, approximately, thelast place a principled kitchengoes for local, sustainable, orga-nic, artisanal groceries.
“If Grandview doesn’t haveoxtail, then our chef will probablyask the guys from Sysco for it,” Mr.Sidhu said when I challenged himon his purchasing.
That wasn’t mentioned in hismanifesto.
When you park the hype, andthe organic and local claims (notto mention all of the company’syou’ve-got-to-be-kidding-mehealth claims; check out thatmanifesto), it’s not hard to seePlaya Cabana for what it really is.It’s mediocre Mexican forstarched-collar white folks – it issafety in the guise of virtue andauthenticity, an all-inclusive San-dals in the Yucatán, ringed with achain link fence. Playa Cabana isTaco Bell for blue bloods, exceptthat Taco Bell doesn’t try to pre-tend it’s better than it is.
If all of Playa Cabana’s producesave the avocados is sourced local-ly from spring through fall, as Mr.Sidhu’s manifesto pledges,where’s he getting that cob cornthat’s on the menu lately, threemonths before Ontario corn sea-son? “It’s more like after thespring, going into the summer,when our produce season startshere in Ontario,” Mr. Sidhu said.
If local and organic are priori-ties, why was the “daily catch” thisweek farmed, imported tilapia,and not Ontario pickerel or yellowperch or wild shrimp from Que-bec, all of them in season?
Words are cheap.For dessert there are churros
that, the night I had them, lookedand tasted the way churros mightlook and taste like if the personmaking the churros had neverseen or eaten a churro before.They were bland and dry, roun-dish like Timbits, deformed-look-ing, like maybe they’d grown uptoo close to a nuclear power plant.
I had the churros at Taco Bellonce. They were really good.
This is Taco Bell for blue bloodsDespite promises of fresh, local sourcing, Playa Cabana’s Junction location produces mediocre Mexican
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Playa Cabana on Dundas Street West is loud and fun, but the kitchen has issues. FERNANDO MORALES/THE GLOBE AND MAIL
“We didn’t know for sureabout the Eglinton transit
route, but they’ve been talkingabout it for 100 years, so I figuredsooner or later it was going tohappen,” he says.
And he was right. The provincehas since committed $8.4-billionto the creation of four light railtransit lines, including the Eglin-ton Crosstown LRT, which willrun from Black Creek Drive toKennedy Station and is scheduledto be complete by 2020.
Yonge and Eglinton, which notso long ago was facing decline, isexperiencing a massive growthspurt that is just in its infancy.Following in the footsteps of itssouthern siblings, it is going toget much taller, as 30-storey-pluscondo buildings become morecommonplace. And while densityis being encouraged, the conges-tion that it can cause is likely tostir up more controversy aroundYonge and Eg (or as Mr. Sonshinenotes it’s sometimes called,Young and Eligible) than it has insome parts of the core that aremore accustomed to hustle andbustle.
But this is a train that’s alreadyout of the station. The averageprice per square foot for new con-dos in North Toronto has risen 18per cent in the last three years, to$636, according to data from Re-alNet Canada Inc. While there aremore cranes and higher prices ondowntown’s west side, its growthrate doesn’t touch that at Yongeand Eg.
A cycle is occurring: Yonge andEg became more attractive to resi-dents, which attracted condo de-velopers, who – with the addedamenity of the new LRT line – areattracting more residents.
As the growth feeds on itself,new office space is being built forcompanies that want to tap intothe growing pool of nearby resi-dents. And condo builders arelooking for ways to appeal to thearea’s vast population of renters.
The impact of these changeswill be substantial, say developerswho are becoming increasinglyactive in the area. Five of themgathered recently at Grano, a res-taurant on Yonge Street that’s alocal mainstay. Over coffees and
cakes, they discussed the neigh-bourhood’s transformation andwhy they are collectively bettingbillions of dollars on the area.
“We feel that this is the begin-ning for Yonge and Eglinton,” saysTodd Cowan, a partner at CD Cap-ital, which has teamed up withFreed Developments for a bigcondo development push there.
“Yonge and Eglinton neededsomething to give it a kickstart,and we think that this commit-ment for the LRT line is what real-ly created the impetus,” Mr.Cowan says.
CD Capital and Freed Develop-ments will be making a billion-dollar commitment to the neigh-bourhood over the next five toten years. “We’re big believersthat, if you look back ten yearsfrom now, it’s going to be one ofthose moments where if you’renot in, you’re going to say ‘Geez,I wish I had invested there,’ ” Mr.Cowan says.
Chris Sherriff-Scott, senior vice-president at Minto, rememberswhen the area was losing its mojoduring the ‘90s. “It was actually indecline,” he says. “When do peo-
ple know that a neighbourhood isin decline? When they wake upone day and stores are shuttered.That’s what was happening heregradually.”
“It was a sleeper for a very longtime, but it was stable,” saysMaurice Wager of Shiplake Man-agement Company, which hasbeen active in the neighbourhoodfor decades.
The developers suggested thatdensity is inevitable, and shouldbe welcomed as a sign of a neigh-bourhood on the rise. “The fact isthat the opportunities for newlybuilt housing in this area, and inmost parts of the 416, are a higherform of density,” says Jim Ritchie,a senior vice-president at Tridel.
“We traditionally produce25,000 homes in the GreaterToronto Area, and it used to be17,000 or 18,000 of those werelow-rise,” says Jared Menkes, a de-velopment manager at Menkes.“Now it’s switching to 17,000 to18,000 high-rise, and 12,000 or13,000 low-rise homes. And thatlow-rise number is still comingdown because we’re finding itharder and harder every day tofind land to build those.”
In addition to attracting newresidents to the neighbourhood,the condo developers who arepushing into Yonge and Eg arehoping to coax some of the ren-ters in the many apartment build-ings that have long dominatedthe area into buying units. “Thiscommunity has the highest per-centage of renters in the city,”says Mr. Ritchie.
Of condo buyers, about one-third are single females, a muchhigher proportion than average,he adds. “And you also have avery high percentage … of thepeople in this community whoare either single or couples thatdon’t have kids.”
Investors are also snapping upmany of the new condo units.And that’s pushing apartmentlandlords to improve their offer-ings, even though the rental mar-ket is tight right now. Mr. Wagersays that Shiplake’s 1965 apart-ment building at 45 Dunfield Ave.is turning over units in two tothree days when they becomevacant. Nonetheless, “now we’re
starting to test the market byintroducing what we feel is a suitethat’s more competitive with thenewer stock,” he adds. The com-pany will keep apartments off themarket for about a month afterthey’re vacated and do extensiveupgrades.
“A typical one-bedroom thatwould go for $1,450 a month isnow going for $1,650 or $1,700 amonth. We’re starting to hit thosecondo rents in apartment build-ings,” Mr. Wager says.
The province legislates maxi-mum rent increases for existingapartment tenants, one of thereasons why relatively few apart-ment buildings are being con-structed. So it’s somewhatsurprising when Mr. Wager saysthat the momentum at Yongeand Eg is strong enough that“we’re looking at doing new pur-pose-built rental buildings in thearea.”
The neighbourhood’s offices areundergoing a revitalization instep with the housing stock, saysMr. Menkes. He points to firmslike LinkedIn and Facebook,which have offices in the area.With a growing base of eageryoung workers moving in, manycompanies are taking notice.“The condominium buildingsthat we bring in are bringing inthe workforce,” says Mr. Ritchie.
Back at his office in the Yongeand Eglinton Centre, Mr. Son-shine is thinking of adding250,000 square feet ofoffice spaceon top of the existing towers.“When we bought this buildingthe office [space] was only about80 per cent occupied. Today it’s100 per cent,” he says. Four or fiveyears ago, the company studiedthe idea of building more offices,but the costs of constructionweren’t economical. Now, rentsare increasing and tenants arehungry for more space.
This, the developers say, is thenew reality here. “There are anumber of projects that are high-profile – they look large untothemselves,” says Mr. Sherriff-Scott. “But if you look at them interms of the community as awhole, there wasn’t anythinghappening here for close to 25years. Its time has come.”
FROM PAGE 1
Eglinton: New transit line has kickstarted cycle of growth and development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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• GLOBE T.O.
THE DISH
PLAYA CABANA CANTINA(NO STARS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2883 Dundas St. W. (at MavetyStreet), 647-352-7767playacabana.ca. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Atmosphere: The à-la-carteoption at an all-inclusiveresort on the Yucatan, decora-ted to look like a tequila bar inTijuana.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wine And Drinks: Margaritasby the glass and pitcher, ashort list of easy-drinkingbeers, more than 50 tequilas.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Best bets: Flautas, tortillas andsalsa.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prices: Appetizers, $4 to $19;Mains, $14 to $24.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
No stars: Not recommended� Good, but won’t blow a lotof minds�� Very good, with somestandout qualities��� Excellent, well aboveaverage with few caveats, ifany����: Extraordinary,memorable, original, withnear-perfect execution
CURRENT CONDO PROJECTS
1 101 Erskine Tridel and Beaux Properties 4302 123 Eglinton Ave. East Tridel 1833 155 Redpath Freed Developments Ltd. and CD Capital 4644 43 Eglinton Ave. East Conservatory Group 1425 83 Redpath Benvenuto Group 2076 88 on Broadway Cityzen Urban Lifetyle and Myriad Group 2007 900 Mt. Pleasant Plaza 242
8 Berwick 204
9 E-Condos - South Tower 695
10 Madison - East Tower Madison Homes 25811 Madison - West Tower Madison Homes 44312 Minto 30 Roe Minto Developments 39713 Neon Pemberton Group and Felcorp 22914 Panache Stanford Homes 19615 Quantum 2 - North Tower Minto Developments 53816 Quantim - The South Tower Minto Developments 33317 Republic - 25 Broadway Tridel 17818 Republic - 70 Roehampton Tridel 282
Brown Group of Companies Inc.and Andrin Homes
Bazis International Inc. and MetropiaUrban Landscapes of RioCan
NAME BUILDER TOTALUNITS
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EGLINTON AVE. W.
BROADVIEW AVE.
ERSKINE AVE.
ROEHAMPTON AVE.
SOUDAN AVE.
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THE GLOBE AND MAIL 66 SOURCE: REALNET CANADA INC
SOLD OUTACTIVE
CHRIS NUTTALL-SMITHTHE [email protected]
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20
Media CoverageIn Toronto’s Crowded Skyline, Peter Munk Sees Gold May, 2013
GLOBAL ECONOMY
DOWN UNDER’S DOWNTURN
A strong currency, triple-A credit rating and a commodities-heavy economy – Australia looks a lot like us. But as Tavia Grant reports, the country’s cooling growth and Tuesday’s surprise interest-rate cut doesn’t mean Canada will follow suit. PAGE 13
G
S&P/TSX12,464.11 (+10.19)
DOW15,056.20 (+87.31)
S&P 5001,625.96 (+8.46)
DOLLAR99.56 (+0.24)
GOLD1,448.80 (-19.20)
OIL95.62 (-0.54)
GCAN 10-YR1.817% (+0.022)
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Report on Business W E D N E S DAY , M AY 8 , 2 0 1 3 S E C T I O N B
EDITOR: DEREK DeCLOET
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Connect with us: @globebusiness facebook.com/theglobeandmail linkedin.com/company/the-globe-and-mail
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OfficeMax GRAND&TOYIt’s the coming together of experience and expertise, a trusted Canadian brand strategically aligns with its parent
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kjharrison.comDISCIPLINED INVESTING, DEPENDABLE RESULTS
flix’s success by offering populartitles over the Internet for a lowcost.
But that competition has beenslow to materialize in Canada,which has helped Netflix almostdouble its number of subscribershere in the last year.
That’s about to change: Rogers
Canadian television providers areplanning to cut their own cords,with several of the country’s larg-est media companies developingsubscription-based services tocompete with online rivals such
as Netflix Inc.The streaming video service –
which now has close to two mil-lion Canadian subscribers paying$7.99 a month for access – is fac-ing intensifying competition inthe United States by well-fundedcable and technology companiesthat are trying to replicate Net-
Communications Inc. is develop-ing a service that would give sub-scribers access to movies andtelevision shows and is also con-sidering developing televisionseries solely for digital distrib-ution to enhance the product’sappeal.
BROADCASTING
Cable’s channel changer: The fight to be Netflix North . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
STEVE LADURANTAYEMEDIA REPORTER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rogers, Page 12
The Dow at 15,000
Despite another record for the index, investor confidence remains lukewarm.Page 14
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Investing Q&A
John Heinzl takes your questionsin a live chat today at noon (ET).tgam.ca/DqLX
MARKET WATCH
Peter Munk says he’s largely outof the real estate game, but he isputting his money in one surpris-ing spot – Toronto condos.
The 85-year-old founder andchairman of Barrick Gold Corp. –and former head of real estate gi-ant Trizec Properties, which wassold to Brookfield PropertiesCorp. in 2006 for more than$5-billion – is now spending someof his personal wealth on financ-ing condo projects in Canada’smost populous city.
It’s a contrarian move. Policymakers in Ottawa, includingFinance Minister Jim Flaherty andBank of Canada Governor MarkCarney, have suggested that theythink too many condos are beingbuilt in Toronto’s core.
Research firm Urbanation Inc.said Monday that 2,728 new con-dos were sold in the city duringthe first three months of this year,down 29 per cent from the priorquarter and 55 per cent from thefirst quarter of 2012. Some devel-opers have shelved project plansamid the sales downturn, and thenumber of new buildings thatopened in the first quarter of thisyear was the lowest since thethird quarter of 2009. The num-ber of unsold units in projectsthat are going ahead has climbedto 18,845, up 21 per cent from ayear ago.
But Mr. Munk, who believes inToronto’s long-term future, isunfazed.
“That’s the wonderful thingabout the markets; if all of us hadthe same view, we couldn’t affordto buy anything,” Mr. Munk saidin an interview. “It’s wonderful tohave opposing views.”
INVESTING
In Toronto’scrowdedskyline,Peter Munk sees gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TARA PERKINS REAL ESTATE REPORTER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Condos, Page 12
PAGE 3
MICROSOFTSEARCHESFOR AONE-SIZE-FITS-ALLSOLUTION
WestJet Airlines Ltd. is headingto the runway with an expandedfleet, raising concerns that thesurge in capacity will lead to arenewed industry price war.
The Calgary-based carrier willlaunch its regional subsidiaryWestJet Encore in late June, justas Air Canada introduces its newlow-cost leisure carrier Rougethis summer.
Such extra capacity has thepotential to corrode profit mar-
gins, if airlines are unable to fillthe extra seats or have to slashticket prices to do so.
Analysts pushed the companyon the capacity question during afirst-quarter conference call, inwhich WestJet unveiled recordearnings.
Despite those results, the shareprice of WestJet declined morethan 7 per cent, down $1.85 to$22.87 Tuesday on the TorontoStock Exchange. Air Canada’sstock price also fell sharply, off7.6 per cent.
COMPETITION
Fears of fare war hit airlinesWestJet’s plans to add capacity send shiver through sector – even as record results roll in
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WestJet, Page 12
GUY DIXON TORONTOBRENT JANG VANCOUVER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For someone who says he’snot a real estate guy, PeterMunk has built an extensivecareer in the property market.Here are some of his ventures:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Big return
Mr. Munk’s holding companyacquired real estate firm Tri-zec Corp. for $750-million in1994, followed by an aggres-sive buying spree that in-cluded the purchase ofChicago’s Sears Tower. In 2002,the company renamed itselfTrizec Properties and becamea real estate income trust.Four years later, it was pur-chased for $4.8-billion (U.S.)by Brookfield Properties Corp.and buyout firm BlackstoneGroup. At the time, Trizec’sportfolio included 61 U.S.office towers. Mr. Munk nettedmore than $320-million (Ca-nadian) from the sale.
PETER MUNK’S REAL ESTATE ADVENTURES
Exotic locales
Mr. Munk is no stranger toventures in far-flung locations.He and business partner DavidGilmour built a hotel empirein the South Pacific. In 1981,Mr. Munk and his partnerssold Southern Pacific HotelCorp. for $130-million (U.S.).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The next Monaco
Mr. Munk has a vision for Tiv-at, a coastal town in Montene-gro: He wants to make it thenext Monaco. He and a groupof investors are transformingthe industrial port into a luxu-ry marina/playground for thesuperrich known as PortoMontenegro, where weeklyrates for apartments range be-tween €850 and €10,000($1,100 to $13,000). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Matt Lundy
B12 G T H E G LO B E A N D M A I L • W E D N E S DAY , M AY 8 , 2 0 1 3• REPORT ON BUSINESS
TORONTO
155 Redpath
A 470-unit residential condomin-ium project located in the Yonge-Eglinton neighbourhood.
Sixty Colborne
A 300-unit residential condomin-ium project, with retail space onthe ground level, located in thehistoric St. Lawrence Market areaadjacent to the downtown busi-ness core.
MONTREAL
Ma Condos
A 150-unit residential condomini-um project located between twogreen spaces 10 minutes fromdowntown Montreal and servedby two Métro stations.
BUCHAREST
Victoria City Centre
A 350,000-square-foot shoppingcentre in northwest Bucharestwith direct subway access; it alsohas 1,900 parking spaces.
HUNGARY & ROMANIA
EuroMiniStorage
2,000-unit, self-storage facilitiesthat CD Capital says have “set thestandard for self-storage in Hun-gary and Romania.”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Source: CD Capital
CD CAPITAL’S PROJECTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“I’m not particularly invest-ing in condo projects, I’m
investing with a man who Ithink is absolutely tops,” headded.
The developer that Mr. Munkis backing is CD Capital, headedby Todd Cowan and JordanDermer. CD Capital’s projects in-clude the 300-unit Sixty Col-borne project near the St.Lawrence Market, which is yetto be built but launched lastyear, and 155 Redpath, near theintersection of Yonge Street andEglinton Avenue, which is justlaunching. CD Capital hasteamed up with Freed Develop-ments and more projects are onthe way. Mr. Munk is one of anumber of wealthy individualsproviding financing for thebuildings.
Mr. Cowan and Mr. Dermerwere both previously executivesat Trizec Properties and went onto be top executives at a jointventure it created, TriGranit De-velopment, whose major share-holders included Mr. Munk andBritish financier Nathaniel Roth-schild. Mr. Cowan became CEOof TriGranit, which developedmore than 10 million squarefeet of properties in Central andEastern Europe from 1997 to2006, when he and Mr. Dermerleft the company and returnedto Canada to start CD Capital.
Mr. Munk declined to say howmuch he has invested in CDCapital buildings. “For me, it’s asignificant amount of money forreal estate,” he said. “I’m notreally a real estate investor.”
“I can’t recall having met ayoung executive with the poten-tial and track record, at his age,of Todd Cowan,” Mr. Munkadded. “When he says condo, Iinvest in condo.”
Mr. Cowan was 28 when hemoved from Canada to Budap-est in 1996 to help get TriGranitoff the ground. The companycontinues to be one of the larg-est fully integrated real estatefirms in Europe. Mr. Cowan,who took a year off when hemoved back to Canada, said heand Mr. Dermer wanted to raisetheir families in this country,and felt that they could put
their experience to use – alongwith the relationships they haddeveloped with people such asMr. Munk and the Rothschilds –to work at home.
“The vision is to turn CD Cap-ital into one of Canada’s great-est developers over the next 10to 20 years,” Mr. Cowan said.
While Toronto condo buildingsare no longer selling out over-night, the market’s long-termprospects are strong, he and Mr.Dermer said. “We think the cityis backed by a very strong rentalmarket and continued inwardmigration,” Mr. Dermer said. Headded that the Yonge and Eglin-ton area, which will be servedby a new light-rail transit line, isripe for development.
But other investors are in-creasingly reluctant to make thebet that Mr. Munk is making.Toronto has more high-rise realestate buildings on the go thanany other city in North Americaand with nearly 60,000 unitsunder construction, activity is ata record high, said Canadian Im-
perial Bank of Commerce econ-omist Benjamin Tal.
He estimates that about 31,000households will form annuallyin the Greater Toronto Areaover the next few years; if that’sthe case, then the projected in-crease in homes in the regionwould suggest overbuilding, hesaid.
Mr. Tal expects that the mar-ket will face its real test in 2014,when as many as 35,000 unitscould be completed, up fromthe average over the past dec-ade of about 15,000. That wouldbe uncharted territory, he said.
However, he expects thatmany projects in the city willwind up being delayed. That’s inpart because “financing isbecoming an issue with the rap-id pace of development causingmany lenders to think twicebefore extending credit.”
He estimates that condo devel-opers are currently facing a$2-billion to $3-billion financinggap, one that’s mainly havingan impact on second-tier playersand luxury condo developers.“The biggest risk that we arefacing is that those investorsthat have been buying condo-miniums, given the fact theywon’t be able to see the sameincrease in rent, maybe theywill bail out,” Mr. Tal said.
For his part, Mr. Munk, a jet-setter who is behind the devel-opment of the world’s largestsuperyacht marina at PortoMontenegro, said he also be-lieves in Toronto’s future.
“Look at Beijing, look at allthe money. I’ve got friends whohave got kids there, tremendousjob opportunities, and the kidswill come back because theycan’t breathe the air,” he said.“You go to London – one of mydaughters lives there, and it’s sooverpriced that it’s sick-making.New York has got tremendousattractions, but it’s also got ahell of a lot of problems. Lookat the traffic – I have an officethere and you can’t go across.
“Toronto is absolutely unique.It’s not flawless, but it’s somuch better than the possiblealternatives …
“I will die here.”
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FROM PAGE 1
Condos: ‘For me, it’s a significant amount of money for real estate’. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Barrick Gold founder Peter Munk says he believes in Toronto’s future. FERNANDO MORALES/THE GLOBE AND MAIL
The product could competewith similar offerings from
companies such as Bell Mediaand Videotron, which has alreadydeveloped and marketed aFrench-language Netflix alterna-tive available in Quebec and On-tario.
The companies don’t intend toget out of traditional television,which is a key driver of profitswith 12 million Canadian house-holds paying for some level ofservice. But they want to sign upformer subscribers who have opt-ed out of traditional subscriptionpackages while at the same timereinventing themselves for amore digital future.
“It’s my belief that all major[broadcasters] will roll out a Net-flix competitor,” said David Pur-dy, vice-president of digitaltelevision products at Rogers.“It’s a common strategy to tryand figure out how to roll outproducts that allow viewers tobinge watch and to offer all-you-can-eat movie services.”
In the United States, a handfulof companies are looking to stealbusiness from Netflix with theirown offerings. Amazon.com haslaunched a video-streaming serv-ice, joining television and tele-communications powerhousessuch as Comcast and Verizon.There is speculation that as morecompetitors fight to secure rightsto online programming, the priceof such services will increaseexponentially and make it moredifficult for low-cost offeringssuch as Netflix to compete.
“Our underlying fundamentalthesis is there will be more thanone Internet TV competitor,”Evercore analyst Alan Gould said.“Internet TV is growing rapidlyand Netflix is the clear leader inthe market; however, we arehighly skeptical of Netflix reach-ing even the low end of the 60-90million subscribers that manage-ment has projected [worldwide].”
Netflix had no comment.Rogers already offers its cable
subscribers online access tomuch of its programming. But itwants to develop a separate prod-uct that would allow those whodon’t subscribe to its cable pack-age to pay for vast collections ofmovies and archived seasons ofpopular television shows. It couldcompete with Netflix to buy Ca-nadian rights in some cases, orshare rights when Netflix isn’t theexclusive carrier.
Companies such as BCE Inc.,Rogers and Videotron are partic-ularly well suited to launch serv-ices because they also owntelevision stations, making it eas-ier for them to access exclusive
content online.Mr. Purdy spoke about the pro-
ject in the midst of hearings intoBCE’s $3-billion purchase ofAstral Media Inc. Executivesfrom both BCE and Astral arguedto the CRTC that the deal wasnecessary for the companies tocompete with so called “over-the-top” providers such as Netflix.
Cord cutting – in which custom-ers cancel their subscription infavour of online alternatives – isincreasing in Canada, but is stillin its infancy compared to coun-tries such as the United States.But the cable and satellite com-panies are increasingly concernedthat customers will find contentelsewhere, and they want to de-velop their own alternativesbefore customers can walk awayand spend their money with acompetitor.
The companies argue that Ca-nadian companies must be ableto compete, because a portion ofthe money they generate fromsubscribers goes back to Cana-dian productions. BCE has pre-viously said it intended todevelop a Canadian Netflix, butneeds to buy Astral to make ithappen.
“Netflix is just one prominentexample of the kind of scalebeing brought to bear on Cana-da’s industry, challenges to ourbusiness that we believe we mustmeet head-on by expanding ourown scope and scale,” said Astralchief executive officer Ian Green-berg. “That’s what this transac-tion enables.”
FROM PAGE 1
Rogers: Traditional TV a key driver of profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9It’s my belief that all major
[broadcasters] will roll out a
Netflix competitor.
David PurdyRogers’ vice-president of digitaltelevision products
WestJet is stoutly defendingits expansion, with chief ex-
ecutive officer Gregg Saretsky say-ing the economy will be strongenough to support the additionalcapacity. “So we’re putting a littlebit of our foot to the acceleratorbecause of the continued strongmacroeconomic environmentand the results that we’re enjoy-ing,” Mr. Saretsky said during aconference call on its better-than-expected first-quarter results.
He said the airline ran its planestoo full last year, giving up poten-tial customers it could have wonhad there been more capacity.“We’re going to do whatever wecan to bring the right amount ofcapacity to the marketplace, andbe a fierce competitor ourselves.”
Mr. Saretsky said the capacityWestJet is bringing to the marketshould enable the airline to stillgenerate a sustainable 12-per-centreturn on invested capital.
Air Canada and WestJet are ingrowth mode. WestJet’s seat ca-pacity climbed to two billionavailable seat miles (ASMs) lastmonth, up 7.4 per cent from ayear earlier. Air Canada’s year-over-year capacity for April rose 1per cent to 5.3 billion ASMs acrossits system worldwide, with do-mestic ASMs up 3 per cent.
Both airlines have been postingimpressive traffic numbers. West-Jet’s April load factor, or the pro-portion of seats filled by payingcustomers, was 82.7 per cent,while Air Canada enjoyed anApril load factor of 82.1 per cent.
As Montreal-based Air Canada
gears up to attract leisure travel-lers, notably through startingRouge, the extra capacity isexpected to put downward pres-sure on ticket prices. A familiarpattern has emerged in the air-line industry – just as carriersfind a measure of financial healththrough higher ticket prices, theythen aim to increase marketshare by adding seat capacity,effectively driving down airfaresand squeezing already thin mar-gins for operations.
WestJet’s first-quarter profit was$91.1-million or 68 cents a share,compared with $68.3-million or49 cents in the same period a yearago, better than most analystshad expected.
WestJet executives said they be-lieve that the current secondquarter will also be strong, des-pite the added cost of more seatsflown with the new WestJetEncore. But the added capacityhas some observers worriedabout the prospects for furtherstrong results.
“So investors are thinking,‘Well, your load factor is falling,but you’ve got this huge amountof capacity growth. Are you goingto be able to fill that capacityprofitably?’ ” said Robert Koko-nis, president of aviation consult-ing firm AirTrav Inc., who alsosaid the selloff in WestJet stockwas an overreaction.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
With files from The Canadian Press. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WestJet (WJA)Close: $22.87, down $1.85
FROM PAGE 1
WestJet: Fare wars are feared. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
21
Media CoverageMachines Begin Tunnelling for Eglinton Crosstown LRT June, 2013
22
NEW RELEASE OF SUITES STARTING FROM $209,900
New Release of Suites
26
DesignMatters
330 Sq. Ft.$209,900
$636 / Sq. Ft.
N
+
Sizes and specifications subject to change without notice. E. + O. E. 4
STUDIO INTERIOR 330 SF
FLOORS: 10-15
04
BALCONY119 SF
LIVE/DINE/SLEEP16’-4” x 10’1”
BATH
W/D
F
N
+
Sizes and specifications subject to change without notice. E. + O. E. 11
STUDIO INTERIOR 344 SF
FLOORS: 10-15
11
BALCONY119 SF
LIVE/DINE/SLEEP16’-1” x 11’0”
BATH
W/D
F
344 Sq. Ft.$220,900
$642 / Sq. Ft.
155 Redpath Lower Tower Studio Collecton
27
DesignMatters
2BR+DEN / 1082 Sq. Ft.
$775,900$717 / Sq. Ft.
2BR+DEN / 1252 Sq. Ft.
$908,900$726 / Sq. Ft.
155 Redpath Penthouse Collecton
4
F
F
W/D
MASTERSLEEP
10'-5" x 14'-0"
MASTERBATH
BATH
WALK-INCLOSET
FOYER
LIVE/DINE14'-7" x 18'-5"
KITCHEN6'-0" x 12'-0"
SLEEP9'-5" x 9'-6"
STUDY9'-5" x 6'-5"
BALCONY265 SF
TWO BedrOOm + deN InterIor 1082 SF
04
FLOOR: 34-36
N
+
Sizes and specifications subject to change without notice. E. + O. E.
N
+
Sizes and specifications subject to change without notice. E. + O. E. 2
F
F
STUDY7'-5" x 10'-5"
MASTERSLEEP
14'-7" x 10'-5"
WALK-INCLOSET
LIVE/DINE14'-2" x 20'-1"
KITCHEN6'-0" x 12'-0"
SLEEP9'-8" x 11'-0"
BATH
W/DFOYER
OP
T. F
IRE
PL
AC
E
BALCONY497 SF
MASTER BATH
02
FLOOR: 34-36
TWO BedrOOm + deN InterIor 1252 SF
28
DesignMatters
2BR+DEN / 1288 Sq. Ft.
$975,900$758 / Sq. Ft.
3BR / 1403 Sq. Ft.
$1,075,900$767 / Sq. Ft.
155 Redpath Penthouse CollectonN
+
Sizes and specifications subject to change without notice. E. + O. E. 5
F
F
BATH
W/D
MASTER BATH
OPT. FIREPLACE
LIVE/DINE16'-2" x 21'-4"
KITCHEN6'-0" x 12'-0" MASTER
SLEEP10'-6" x 14'-11"
SLEEP9'-0" x 12'-8"
SLEEP12'-8" x 9'-9"
WALK-INCLOSET
WALK-INCLOSET
WALK-INCLOSET
FOYER
BALCONY496 SF
THree BedrOOm InterIor 1403 SF
04
FLOOR: 34-36
N
+
Sizes and specifications subject to change without notice. E. + O. E. 6
F
F
MASTER BATH
MASTER SLEEP14'-8" x 10'-8"
SLEEP10'-0" x 13'-6" W/D
FOYER
STUDY7'-4" x 7'-0"
LIVE/DINE21'-7" x 17'-7"
KITCHEN6'-0" x 12'-0"
BATH
WALK-INCLOSET
WALK-INCLOSET
BALCONY93 SF
BALCONY140 SF
OP
T. F
IRE
PL
AC
E
TWO BedrOOm + deN InterIor 1288 SF
06
FLOOR: 34-36
30
EXCLUSIVE EVENT PRICING AVERAGE
$620 /SF
SUITES STARTING AT $553 /SF
FOR LIMITED TIME ONLY
Top Performers Pricing
34
CLIENTS WHO BUY A UNIT AT 155 REDPATH RECEIVE RECEIVE A TARGETED PRICE APPRECIATION OF BETWEEN $20 – $50/SF
TO THE COMPETITION WHICH ARE AVERAGING $662/SF FOR UNSOLD INVENTORY
Top Performers Pricing
36
Purchaser Incentives
* Maintenance calculated as a credit on closing
FREE MAINTENANCE FOR A YEAR
n Extended Deposit Structure: $5,000 on signing Balance to 5% – 30 days 5% – 90 days 5% – 180 270 days 5% – 365 720 days
n Development Charges Capped STUDIO, 1BR & 1BR+Den = $5,500 2BR = $7,500
n $0 Assignment Fee
*
37
Sound Investment2013 Rental Analysis (using actual MLS figures)
1 BR
1 BR + Den
2 BR (1Bath)
2 BR (2Bath)
Unit Type
$319,800
$386,835
$434,190
$488,900
Price($615psf)
$63,960
$77,367
$86,838
$97,780
20% Down Payment
$255,840
$309,468
$347,352
$391,120
80% Mortgage Balance
$1210.75
$1,464.54
$1,643.83
$1,850.96
Monthly Mortgage(3%, 25yr Annualized)
$1,689.55
$2,054.83
$2,505.77
$2,596.48
Total Carrying Costs:Mortgage, Maintenance $0.49psf, Property Tax @ $0.875 of Purchase Price
$1,670
$1,850
$2,375
$2,560
2013 Estimated rent per unit
$6,997
$8,463
$9,500
$10,694
Principal Paid Down by Tenant end of Year 1
9.4%
8.9%
9.7%
9.4%
Year 1 ROI
38
Sound Investment2017 Rental Projection Analysis (assuming 4% per year rent increases from 2013 to 2017 Occupancy Date)
Notes: - Buildings used in this CMA: 2181 & 2191 Yonge Street, 25 Broadway, 70 Roehampton.- Lease prices reflect transactions from the past six months.- No bachelor suites were rented in the subject buildings. 2013 Rental figure is approximate.- Rental rate estimates are based on average lease prices in subject buildings.- Parking not included in any of units used in this CMA (2BR + 2Baths used in CMA had a parking space included, $175 subtracted to reflect a parking fee adjustment).- The 4% increase in rental rate year over year is compounded, therefore, true increase in rent is approximately 17% over 4 year term.
1 BR
1 BR + Den
2 BR (1Bath)
2 BR (2Bath)
Unit Type
$319,800
$386,835
$434,190
$488,900
Price($615psf)
$63,960
$77,367
$86,838
$97,780
20% Down Payment
$255,840
$309,468
$347,352
$391,120
80% Mortgage Balance
$1,277.33
$1,545.08
$1,734.23
$1,952.75
Monthly Mortgage(3.5%, 25yr Annualized)
$1,770.77
$2,143.29
$2,405.17
$2,698.27
Total Carrying Costs:Mortgage, Maintenance $0.49psf, Property Tax @ $0.875 of Purchase Price
$1,953
$2,164
$2,778
$2,995
2017 Estimated rent per unit
$6,542
$7,913
$8,882
$9,998
Principal Paid Down by Tenant end of Year 1
18.2%
15.3%
20.2%
18.6%
Year 1 ROI
