Toronto QueenChurch | 185.9m | 57s | Tridel | Kirkor

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Absorption has been slow here, with approx 30% sold as of the end of August. They sold 130 of the 445 units quickly in the first month, but the last two months have really had few sales. Not sure if it is market economics with higher rates, or if it is something specific to this project. Source: Altus Data Studio (Real Net of new)
 
Urban-Affair said:
Absorption has been slow here, with approx 30% sold as of the end of August. They sold 130 of the 445 units quickly in the first month, but the last two months have really had few sales. Not sure if it is market economics with higher rates, or if it is something specific to this project. Source: Altus Data Studio (Real Net of new)
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Nothing anomalous here. The whole industry is really slowing down. Slow sales everywhere and unlaunched projects pushing their dates out.
 
ProjectEnd said:
Nothing anomalous here. The whole industry is really slowing down. Slow sales everywhere and unlaunched projects pushing their dates out.
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Thoughts on whether any builders will consider switching to purpose-built rental?

That market seems plenty tight, with revenues holding up.

Maybe partner w/some of the institutional money, like Concert?
 
Everyone runs their financials differently but in my mind, PBR makes even less sense. Especially since if you're not going to JV with someone else, you need to have property management, asset management and operations departments - these aren't small things to start up, especially if the whole industry is in a bit of a 'cool down mode'. You're also booking your income / proforma in a way which most condo shops don't do - your lending structure changes, as do your lenders. Income doesn't come in quick deposit lumps and you have to look much farther out to see 'success'. On the ground, you also need to design your M&E systems differently and likely re-demise your floors (PBR is often larger than condo).

Some places can do it, most can't. In general, I've not heard of anyone switching the tenure of their buildings over, just kicking them down the line a bit.
 
ProjectEnd said:
Everyone runs their financials differently but in my mind, PBR makes even less sense. Especially since if you're not going to JV with someone else, you need to have property management, asset management and operations departments - these aren't small things to start up, especially if the whole industry is in a bit of a 'cool down mode'. You're also booking your income / proforma in a way which most condo shops don't do - your lending structure changes, as do your lenders. Income doesn't come in quick deposit lumps and you have to look much farther out to see 'success'. On the ground, you also need to design your M&E systems differently and likely re-demise your floors (PBR is often larger than condo).

Some places can do it, most can't. In general, I've not heard of anyone switching the tenure of their buildings over, just kicking them down the line a bit.
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Agree in general, but it is not universal. A couple of examples are Kingly Condominiums at the King Portland centre, which started out being prepared as rental units, and were switched to being condominiums when the Wynne government changed the rent control rules, and Kings Club, which started out as condominiums by Urbancorp, but as part of their liquidation process, the project was taken over by First Capital and CAP Reit and became rental units.
 
For sure, @AHK. My post was not to say that it's impossible, just not usually done. Especially the condo to rental route. There were *massive* issues at Kingly. It was not an easy transition. I've got no insight into Kings Club, but First Cap and CAPREIT have precisely the different operating structure, as well as the other departments, that would make them one of the shops with the ability to make such a change.
 
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