Toronto Condo and Real Estate Blog

By John Bentley Mays - Globe and Mail

After a century of neglect and dilapidation, Toronto’s downtown east of Yonge Street is gradually coming back to life - very gradually. It’s high time for things to get seriously moving there.

Queen Street West, for its part, has been transformed from a desolate skid row into a bouncy avenue of clubs, restaurants and shops in just 25 years. Other strips in the west-side inner city are being revived by smart investment, especially in new housing. But despite strong growth elsewhere, the renewal of such formerly grand streets as Church, Jarvis and Sherbourne continues to lag behind the rest of the city.

One sign of progress, however, is the appearance of new east-side condominium projects attractive to people affluent enough to support the shops and services that liven up a street. For an example of what I’m talking about, take Aspen Ridge Homes’ VU, slated to rise next spring at the corner of Jarvis and Adelaide streets.

Lofts with 10-foot ceilings are currently on the market for between $150,990 and $307,990, while apartments are for sale between $162,990 (a 485-square-foot studio) and $517,990 (a 1,200-square-foot two bedroom with den).

The design of VU - with twp towers (15 and 24 storeys) and an eight-storey podium, bundles tightly around a little courtyard on a single block - is less about high style than solid city-building. Given that some people may feel apprehensive about the area, the building’s relationship with the city is somewhat guarded.

These are sensible prices for deep downtown properties, it seems to me - especially in view of the fact that a certain amount of urban pioneering will be required of anyone who moves there. VU and other high-density residential developments - notably The Spire at Church and Adelaide - will surely draw more services, shops and restaurants to the area, but it may take some time for local life to become even a little sophisticated.

Designed by David Pontarini, founding partner in the Toronto firm Hariri Pontarini Architects, VU is less about high style than solid city-building. Its three main structural elements - two towers (15 and 24 storeys) and an eight-storey podium, bundled tightly around a little courtyard on a single block - are intended to be artistic responses to their urban context.

The use of much brick and mortar in the street-level parts of the complex was prompted, Mr. Pontarini explained, by the brick industrial facades that abound in the neighbourhood. The towers of glass and steel are more urbane and openly modernist in inspiration - tall, but not too tall for the generally low-scale environment. The higher of the two towers, marking the corner of Adelaide and Jarvis, does good urban service by providing a monumental focus and termination for Adelaide, which jogs sharply at this intersection.

Townhouses open directly along the George Street facade of the project, enhancing its linkage to the street-level life of the city. But the area’s long history as a haven for needy and unpredictable people is not going to be undone by a single spiffy condominium development. So it is that VU tends to be somewhat more guarded in its relationship to the city than developments of its kind in other parts of town.

Cars come inside the inner courtyard; there are no drop-off points along the edges. The elevator lobbies for the towers are tucked well inside the structure, and well away from the sidewalks. And the most conspicuous pedestrian entrance is not on one of the more exposed sides (Adelaide, Jarvis, Richmond Street East) but along little George Street. I have no problem with this emphasis on security, by the way. Anything that makes it easier for people to get past their apprehensions about living on the east side is fine by me.

This part of Toronto, after all, should be quickly repopulated, and treasured by its new inhabitants, and by us all.

It was in this place, in 1793, that John Graves Simcoe laid out the first thoroughfares of the tiny town of York; George Street was the original townsite’s western boundary. But in the mind of Simcoe - despite the harsh wilderness conditions of early life here - York was never to be just another frontier settlement. It was to emerge as a fine, large city, with stately buildings in the classical manner quickly replacing the log cabins of the first settlers. A great university would arise here, along with a botanical garden, learned societies and other institutions of high civilization.

Some of Simcoe’s visions have been realized in the city that came into existence after the 1790s - but few in the exact clump of city blocks where Hogtown got its start. VU and other developments on the east side will be a success, at least from the standpoint of those who love Toronto, if they help breathe new life into our ancient townsite, and inspire still more investment of money and energy into this area of long-neglected urban heritage.

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Demolition continues at one-of-a-kind live/work loft conversion

From The Condo Guide Magazine

It’s ironic that one of Toronto’s hippest and most of-the-moment loft developments is emerging in one of the city’s most eclectic and historic communities.

Although the conversion of the former Irwin Toy Factory building at 43 Hanna Street has only recently begun, the project - The Toy Factory Lofts - has become a focal point for the resurgence and revitalization of the Liberty Village community at King and Dufferin.

The demolition process is now well underway, and the transformation of the landmark Irwin factory into the 215-unit The Toy Factory Lofts has been highly anticipated since plans were first announced.

Utilizing the most significant historical elements of the original structure, Lanterra Developments and their team of architects, engineers and designers are promising a loft building that will break through the clutter of cookie-cutter condos and lofts to become one of the city’s newest and most desirable new addresses.

Quadrangle Architects Inc. has made its architectural mark on Toronto. Their appreciation for the inherent beauty of things past is well demonstrated, with their design of the ChumCity building on fashionable Queen Street West. Known for their expertise with loft conversions, Quadrangle’s unique approach combines function and design with originality and inventiveness - especially with the The Toy Factory Lofts.

Blending the old and new is central to the unique appeal of this development. “We took the irreplaceable original beauty of the building and combined it with unique features for today’s lifestyles,” explains Mark Mandelbaum of Lanterra Developments. “And it’s at the The Toy Factory Lofts that you’ll find some of the largest lofts in Toronto.”

Take, for instance, the dramatic 1,550-sq.-ft. lofts complete with a large terrace (some with an unprecedented cityscape view). These two-bedroom-plus-den luxury units boast ceiling heights that soar up to 18 ft., three spectacularly designed bathrooms, and massive warehouse-style windows.

These spacious, open-concept loft designs feature elements that aren’t found in any other condo development in the city. “We’ve kept the best from the past,” says Mandelbaum. “Original solid all-brick walls, rare Douglas Fir beams and posts, and steel beams and girders give our lofts a sense of tradition and grandeur that’s hard to find with new developments.”

Knowing this area attracts buyers with a heightened appreciation for innovative design, the developers have hand picked interior designs from multiple award winners II BY IV Design Associates. Known for their extraordinary flair, II BY IV has created three interior design packages available for any unit in the building. These dramatic designs perfectly complement the ethereal quality of building, and work well with even the most individual taste.

Liberty Village has become known as Toronto’s most desirable live/work location, and the The Toy Factory Lofts are no exception. The area has seen a recent surge of renewed interest largely sparked by the creative and entrepreneurial spirit of the neighbourhood. It is known as the hub for the fashion and design industries, media, film and television industries, and the IT sector. The area also boasts a European-esque flair of chic cafes, restaurants and markets, while still offering the convenience of a 24-hour Dominion.

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Consumers still want to spend, says report, as building permits continue upward trend

By Desi Auciello, President of the Greater Toronto Home Builders’ Association-Urban Development Institute

Each month, we builders get a private economic newsletter from the Canadian Home Builders’ Association.

The update, authored by Peter Andersen of Andersen Economic Research Ltd., tells it like it is, for better or worse.

The November issue of the Canadian Housing Industry Economic Update hit my desk this week and I was very pleasantly surprised with Andersen’s insider advice on the state of the economy and the housing market.

Under the headline “Positive Consumer Fundamentals,” Andersen states that “Canadian consumers are still in a spending mood, even in Ontario, and this is good news for discretionary spending on big-ticket items such as housing and renovation.”

Andersen attributes the upbeat mood to the combination of solid wage gains and declining inflation, with average hourly wages up 3.4% year over year, well above the increase in the consumer price index (0.7% year/year).

Declining oil prices also weigh heavily in Andersen’s estimation.

Andersen reveals that this robust consumer confidence is being expressed in a whopping 13.5% year/year increase in home centre and hardware store sales.

Meanwhile, GTA new home sales through the first nine months of the year are running at an annualized rate of 41,110 units (Source: Will Dunning Inc.) compared with 42,629 actual sales (Source: RealNet Canada Inc.) in 2005.

Turning to mortgage rates, Andersen acknowledges that they have been volatile, with two cuts in September followed by an increase in October.

He states, however, that regardless of the official published rate, currently 6.8% for a five-year mortgage, the actual rate can go as low as 5.14% depending upon your negotiation skills and leverage.

“This discounting has a big effect on affordability, especially in Ontario markets where new house price increases have been moderate,”Andersen says.

“A $300,000 mortgage with a 25 year amortization and a 5.14% annual rate would require monthly payments of $1,778, which is approximately $300 per month less than what the posted rate would imply.”

Looking ahead, Andersen feels that there is a good chance that both the U.S. and Canada will keep interest rate increases on hold through all of 2007.

“There is even a possibility that the U.S. could cut its interest rates by 25 or 50 basis points next spring,” he says.

The Bank of Canada is expected to take a similar approach with the end result being “a period of relatively stable interest rates for Canada’s new home builders and renovators.”

Looking at specific market indicators, Andersen notes that housing starts (the commencement of construction of a new home or condo) are up 3.9% so far this year, while building permits (the leading indicator) are running about 10% higher.

“Starts, therefore, seem to have trouble keeping up with sales and permits, which means there are a lot of starts (read jobs) still in the pipeline,” he says.

“Residential permits have actually been on an upward trend for several months. Single-family permits show three consecutive monthly increases. In the latest month, the largest increases in residential permits were in Ontario and British Columbia. Ontario housing permits reached their highest level since January.”

Do you have a question about the home building industry? Email Desi Auciello, president of the Greater Toronto Home Builders’ Association-Urban Development Institute at president@gthba.ca or fax 416-391-2118. The views expressed here are those of the GTHBA-UDI president.

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