Toronto Real Estate Blog

Thriving projects in New York, Chicago and Las Vegas underline potential for capital appreciation

From The Globe and Mail

Almost the moment after The Trump Organization and Talon International Development Inc. announced their plan to build a Trump International Hotel and Tower at Bay and Adelaide streets in Toronto, David Zaikin was on the telephone to clients.

“When this project was announced I instantly became a strong believer that it would be a significant winner,” he said. “It has all the earmarks of a good investment. I have stayed at Trump Hotels and seen how other similar projects went in New York, Chicago and Las Vegas.”

To cut to the chase, Mr. Zaikin called his top five international clients; four out of the five have agreed to proceed with the Trump International Hotel and Tower Toronto development.

“Their decision to buy is easy to understand,” says Val Levitan, president of Talon International. “Whether they plan to live in one of the suites themselves and use it as a primary or secondary residence while in the city or to offer it as a rental property, Trump Toronto has all the elements demanded by sophisticated investors.”

Other Trump developments offer an insight into investment values. In New York, the flagship property on Columbus Circle, the model for all Trump International’s to come, commands some of the highest resale prices in the city, for both condominium hotel suites and residences alike.

In Chicago, suites began selling at about $500 (U.S.) a square foot; they now command about $1,200 a square foot, Toronto prices, with 1,295-square-foot residential suites starting at well under $1-million (Canadian) are a true bargain by comparison.

There are four different aspects to the returns the project is expected to generate, says Mr. Levitan. First there is the prospect of a significant return on an investor’s deposit even before the tower is built. Demand bid up prices in both New York and Chicago; Toronto shows indications of paralleling that experience.

In addition newly released suite designs make units affordable to a broad range of buyers. From upwardly mobile professionals and entrepreneurs to wellheeled and well established couples and individuals.

Second there is the near certainty of capital appreciation over the medium and long term. As Mr. Zaikin points out, Trump Toronto occupies a singular position in this city’s residential market. It is an internationally recognized brand.

“Besides,” he says, “there is nothing else like it. No other project offers the range of suites, the amenities and the luxury and quality of construction.”

Third is the prospect of significant cash flow from rental income. Overall vacancy rates in the city dropped to 4.3% last year and are forecast to slide even further, according to Canada Mortgage and Housing.

“The real shortage is in the luxury, high-end market,” says Mr. Zakin. “Toronto is part of the international circuit for business, sports, entertainment, the arts – you name it. There is tremendous pent-up demand for short-term luxury accommodation in this city and nothing matches what Trump Toronto can offer.”

Robbyn Hayden, a Trump Tower sales executive, agrees. She has clients investing because they can foresee tremendous upside in residential units purchased for investment.

“For many senior international executives, and for many athletes, it makes a great deal more sense to pay anywhere from $5,000 to $8,000 a month renting a magnificent suite in a one-of-a-kind building than spending $4-million or $5-million on a home, knowing they may be traded or transferred within a year or two.”

One of the great advantages of Trump Toronto is international recognition, she adds. “No matter where you live, no matter where you come from, chances are you know the Trump name and what it stands for.”

Finally there is the value inherent in the simple pleasures of owning such a property, Mr. Levitan points out.

“There is no question many of our buyers are drawn by the astounding package of amenities and services,” he says. “It is the only property in the city that comes up to international standards of luxury, quality and exceptional service.”

To Mr. Zaikin, residences at Trump International Hotel and Tower, Toronto are, in fact a bargain.

“Toronto has become a worldclass, international city,” he says. “As such, real estate prices here represent tremendous bargains for international investors. What they are seeing is a chance to acquire an internationally recognized, luxury brand property, managed by one of the world’s leading management companies at a third to half the price of similar properties in New York, Chicago, London, Rome, Paris, you name it.”

Simply put, there is nothing else like it, he says.

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Contact the Jeffrey Team for more information

January 18, 2007 — The first half of January yielded 1,592 resale home transactions in the Toronto Area, a 6% increase over the same time period a year ago, Toronto Real Estate Board President Dorothy Mason announced today.

“The strong activity we saw in December has carried through into the new year,” Mrs. Mason said. “Though these are very preliminary results, it is definitely an encouraging sign for the market to be so active this time of year.”

Toronto’s Downtown East (C08) neighbourhood saw 32% more homes change hands compared to mid-January of last year.

Outside of Toronto, the Meadowvale / Streetsville area of Mississauga saw 38% more transactions compared to the first half of January 2006, while Richmond Hill South (N03) saw an increase of 37% over the same timeframe.

The average price of a home remained stable in the first half of January, dipping about 1% to $340,793 from December, though up 10% over the $310,547 recorded during the first half of January 2006. Active listings sit at 17,283, up slightly from 16,517 a year ago.

Ted Tsiakopoulos, CMHC’s Ontario regional economist, expects price increases to remain healthy.

“Home listings continue to trend higher across the GTA early in 2007,” Mr. Tsiakopoulos said. “This bodes well for consumer choice, and rising inventories will help moderate the growth in home prices during the year. Favourable economic conditions and a healthy balance between demand and supply will ensure that home prices continue edging higher.”

The Toronto Real Estate Board’s President noted that all signs point to a healthy market in 2007.

“Activity, price increases and economic fundamentals are all very solid, and now is a great time to take advantage of lots of choice in the market.”

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Contact the Jeffrey Team for more information

With the Trump Tower, Toronto will gain the tallest, most luxurious residential structure in Canada

From The Globe and Mail

Within the next few years the face, the look, the feel of Toronto’s real estate heart will change dramatically. Muddy York, Hogtown, all the other epithets the city once suffered will seem to be part of a dim past.

In its place will be a vibrant, 21st-century, world-class city core dramatically punctuated by the tallest, most luxurious, most elegant residential structure in Canada. Toronto will not only be Hollywood North; it will also be Manhattan North.

The catalyst for this urban sea change is the breathtaking new Trump International Hotel and Tower, Toronto. Managed by the Trump Organization and built by Talon International Development Inc., the tower will soar 70 stories above Bay and Adelaide streets.

Its lower levels will be dedicated to the city’s only true five-star hotel, a marvel of old world service coupled with space-age luxury and design. The upper stories will be home to the cream of Toronto’s young professionals and entrepreneurs plus their well-heeled elders. They will live side-by-side with their international peers – men, women and families who have made Toronto a second home.

The world has become Toronto’s oyster and the new Trump International Hotel and Tower is its shimmering pearl.

“It is a concept so new to this city that some have difficulty coming to grips with it,” says Alex Shnaider, Chairman of Talon International. “There simply is nothing like it in the city; it is an approach which owes much more to Manhattan, London, Paris and Rome.

“The simple fact is, however, Toronto has become a major international city and, as such, there is tremendous demand among sophisticated, successful business, sports, entertainment and cultural leaders for the kind of housing, services and amenities they enjoy in all the other cities they do business in or travel to.”

The details offer an insight into the incomparable levels of service, quality and luxury hotel guests and residents will experience. At ground level there will be separate entrances for the hotel and residential floors. Just off the hotel lobby will be a sophisticated martini and sushi bar.

The next seven floors reflect a Manhattan touch; they are devoted to above-grade parking. The hotel’s administrative offices occupy the eighth floor while the ninth will host a pair of restaurants, one an upscale 135-seat bistro/café for everyday dining and the other an elegant, intimate room offering haute cuisine and presided over by a celebrated chef. Level 10 is a state-of-the art business centre, complete with meeting rooms and all the cutting-edge technology modern business needs to flow smoothly and efficiently.

Residents have access to all the amenities the hotel offers. Room service from the restaurants or even catered sit-down dinners can be arranged with a single telephone call. Housekeeping, concierge service, the assistance of a valet are all at residents’ fingertips. There will be a pair of S Class Mercedes to whisk residents around the city in style and comfort.

Floors 11 through 31 contain 291 studio, one and two-bedroom hotel suites. The hotel units are being sold on a condominium ownership basis. However, should buyers prefer, they can occupy their suites at any time they choose and for how long they like; at their pleasure they can be rented to hotel guests by the management company.

Level 31 is home to the five Trump Executive suites, the largest of which is the Presidential Expo Suite, a monument to luxury measuring in at just less than 4,000 square feet.

The 32nd and 33rd floors offer a magnificent, world-class, 18,000-square-foot spa. A true five-star escape from the hurly burly of daily life, it will offer not only a pool, fully equipped gym and private change rooms but also sybaritic services like aromatherapy, full body massage and yoga. Again, residents have full access to the spa and all its diversions.

The 33rd floor also holds the sky lobby, which serves the 147 residences. A round-the-clock concierge mans the reception desk. Visitors can relax in the comfort of the sky lobby itself or take in stunning views of the city from the adjoining balcony.

Private elevators carry residents and guests directly to individual suites. Trump Toronto residences themselves are in a class of their own, says Val Levitan, president and CEO of Talon International.

“What we have done, through the recent introduction of new suite designs, is create an exclusive community that appeals to the city’s sophisticated, well-to-do professionals and entrepreneurs,” he says. “Trump Toronto will be the address of choice in the downtown core.”

And like any successful community, it offers a range of suites to appeal to the broadest range of buyers. They start at 1,295 square feet and run right up to the 7,000-square-foot, three-level penthouse that sits at the very pinnacle of the tower.

“Trump International Hotel and Tower, Toronto, simply put, is unique,” says Mr. Levitan. “There is Trump, and then there is everything else.”

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Contact the Jeffrey Team for more information

January 18, 2007 — With the growing number of condominiums in the Greater Toronto Area, it is important for Toronto Real Estate Board Members to be aware of the rights of their clients with regard to this type of residence. Specifically, it is important to note that, under the Ontario Human Rights Code, condominium declarations are not allowed to discriminate against families, meaning that adult-only buildings are prohibited (unless the condo corporation qualifies as a housing facility designed specifically for seniors – those over 65 years of age).

Ontario Human Rights Code

The Ontario Human Rights Code currently prohibits discrimination on the basis of family status in the areas of housing, employment, contracts, vocational and professional associations, and services, goods, and facilities. Protection against discrimination on the basis of family status was added to the Code in 1982. Initially, the Code contained an exception permitting residential buildings or parts of residential buildings to be designated as adult only. This provision was repealed in December 1986, following extensive hearings before a Legislative Committee.

As such, condominium declarations cannot discriminate based on family status, such as having children. “Adult-only” lifestyle buildings are not permitted in Ontario except for specific situations such as residences which include a requirement, qualification or consideration for seniors (65 years of age and older) such as senior residences or care facilities.

A condo declaration which discriminates against members based on age is unenforceable unless the condo corporation qualifies as a housing facility designed specifically for seniors (those over 65 years of age). Even if a buyer did signed a Declaration agreeing to abide by a by-law which barred families with young children, that section of the by-law would be unenforceable and could not be enforced by the condo corporation against its member or the buyer in this case.

Complaints

The condo corporation as a private corporation has no legal obligation to be proactive and amend their by-law to make its sections enforceable at law. It is a private corporation which would have to incur legal costs to do so and there is no obligation to be proactive unless the condo corporation becomes subject to an order of the Ontario Human Rights Commission.

The Ontario Human Rights Commission administers the Ontario Human Rights Code. All Ontarians are protected by the Code and can make a formal complaint to the Commission if they feel that their rights under the Code have been infringed. The Commission’s mandate includes investigating complaints of discrimination and harassment; making efforts to settle complaints between parties; preventing discrimination through public education and public policy; and looking into situations where discriminatory behaviour exists. If mediation and conciliation efforts are not successful, the Commission can refer complaints to the Ontario Human Rights Tribunal (Ontario Human Rights Commission Complaint Process).

Feedback

You can share any experience you may have with this issue by emailing Mauro Ritacca mritacca@trebnet.com or Von Palmer vpalmer@trebnet.com.

More Information

For more information, visit the Ontario Human Rights Commission Web Site or call them at 416-326-9511 or 1-800-387-9080 (outside Toronto Area).

Thank you to all of the people who have been contacting us about the Abbey Lofts near High Park. While this project is rather delayed and the builder is working frantically to complete the conversion, there is good news.

The site is currently closed to prospective buyers, it is because the lofts are almost done. The builder is finishing them off, then should be opening the site for viewings at the beginning of February.

The builder has at least 3 units left for sale, though this may change over the next couple of weeks as the interior work is completed, according to a builder rep. Another staff member hinted to me that there might be as many as 6 units left for sale.

These are all premium lofts, starting in the high $400s. There is also a loft available from a previous purchaser who is selling their interest. It is an 1,170 square foot loft with one bedroom plus a den.

The loft has open-concept living space, with a galley-style kitchen and an island eating area. There are stairs down to a sunken living room, which leads on to a den (or extra bedroom) reached through double doors. The architects have taken care to retain as much of the original 1911 Edwardian interior as possible. There are original, exposed limestone walls, original church doors (additional new windows to be put into the doors) and a stained glass archway going into the den. The ceilings are very high and help to create a large open atrium-style space. The walkout to a 30-foot terrace itself is large enough for an ‘outside’ lifestyle. The master bedroom has good closet space and a large en suite bathroom with shower stall.

As for the units available from the builder, they were making some changes as recently as last week, so the details are not as firm. All I know is that they will range from around 1,200 square feet up to just over 1,400 and will be priced from around $499,000 up to $569,000. Parking and locker and the little details are included, of course.

For those not familiar with this project, The Abbey Lofts are located in a period neo-Gothic church situated between Roncesvalles Avenue and High Park in a high-demand community with great shopping, restaurants and nightlife, and lots of room for recreation in Toronto’s most beautiful downtown park. Public transportation, a five-minute walk to the Bloor subway line, is excellent, and there are three streetcars nearby, running along College, Dundas, and King.

Each loft is one of only 24 to be created in a neo-Gothic church that was built in the Medieval Revival style in 1911. The light-grey solid limestone walls and stone cladding of architect William George Burns’ church, built for a Methodist congregation, are unchanged in nearly a century. The 90-foot church tower, built with the same limestone quarried in St. Mary, is a square campanile with pseudo ‘battlements’ on top.

The medieval Revival style is also referred to as Tudor, as in English architecture from the early 16th century. Some aspects of the Tudor style were borrowed from late Medieval castles or palaces, which often had overlapping gables, parapets, and patterned brick or stonework. Medieval churches were often fortified places of sanctuary and the Sunnyside church has some of the features of a fortification, but with a huge arched stained glass window to let light into the vaulted structure.

The church itself has changed names and congregations several times. In 1925, the Methodists merged with other Protestant denominations, and set up the Howard Park United Church. Then in 1970, the United Church congregation left the building and it was acquired by a group of Italian evangelicals. In 2003, they in turn moved from their Howard Street Pentecostal Church to a new building in Vaughan. The church on Sunnyside Avenue, in the High Park-Bloor area, was acquired by the current developers.

For further information, or to schedule an appoinment in February, please be sure to contact the Jeffrey Team today.

P.S. If this particular loft conversion is more than your budget allows, be sure to ask us about the various other converted churches around Toronto – you might be surprised at what is out there!