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Tag Archives: Home construction

Minto Group specializes in skyscrapers, sunshine and sustainable homes

Ryan Starr – Toronto Star

This month marks 10 years since the Ontario Municipal Board gave Minto the green light to build Midtown, a twin-tower condo project just south of Yonge and Eglinton that had been the source of much heated controversy.

Despite pushback from the community and city council over the 37- and 54-storey towers, Midtown – which council eventually approved by a vote of 23-17 – was completed in 2008 and helped paved the path for subsequent high-rise condo development in Toronto.

“Today 50-, 60- or 70-storey buildings are bandied about in numerous locations around the city, without a whole big issue about height and density,” notes Chris Sherriff-Scott, senior vice-president of Minto Communities.

“But before Midtown went through the mill, height and density were huge issues for the city, which was still fussing about (how tall the buildings were) and not about what was going on at the street level.

“So we take particular pride in that development.”

Minto Midtown also helped clear the way for the recent surge of condo projects at Yonge and Eglinton, a once-prominent intersection that had been in decline since the 1970s. “That area was actually undergoing a net loss in population the year we started (Midtown),” Sherriff-Scott says. “Since then, it’s changed dramatically.”

Although Midtown represented a milestone for Minto and the city, it’s just one example of the innovative approach to development that the Ottawa-based company has demonstrated since it started doing business back in the 1950s.

In its six decades since, the family-owned Minto Group has developed more than 70,000 homes, 17,000 residential apartments and more than 2 million square feet of office, retail and industrial space across Canada and the U.S.

Minto was also an early industry leader in sustainable home construction and, in 2011, was named Green Builder of the Year by the Ontario Home Builders’ Association, the third time in four years the company received the award.

With operations in Toronto, Ottawa and Florida, Minto builds an average of 2,000 homes per year. (Its current Toronto condo projects include 30 Roe at Yonge and Roehampton, Winter Garden in Thornhill, 88 at Yonge and Sheppard, and 775 King West.)

The company traces its roots to Ottawa, where it launched in 1955 as Mercury Homes, a suburban home builder founded by the Greenberg brothers: Louis, Gilbert, Irving and Lorry.

The Greenbergs developed an “assembly-line” approach to homebuilding that was novel for the times.

“Builders in those days didn’t build with a construction schedule,” notes Sherriff-Scott. “Most builders didn’t have a production-line mentality in terms of providing certainty about how many days it would take to deliver a house and when things were expected to arrive on site.”

Rather than rely on outside suppliers for building materials, the Greenbergs purchased a mill and began manufacturing their own kitchens, roof trusses and trim.

“By introducing an industrial process, it brought a lot more certainty,” Sherriff-Scott says.

The company changed its name to Minto in 1957. By the mid-1960s, the developer had built more than 5,000 homes in Ottawa and expanded into the construction of rental apartments.

Near the end of the decade, Minto created what it claims was Ontario’s first condo project.

“It was a new form of housing and we took advantage of it immediately,” says Sherriff-Scott. “It was a good business opportunity because it enabled people to enter the home-ownership market at an earlier phase than they ordinarily would have.”

The company expanded to Florida in the late 1970s and went on to build thousands of single-family homes, condominiums and rental apartments in the Sunshine State. (It still maintains its Florida business.)

“We saw it as an interesting opportunity at the time, and it allowed for diversity in terms of the economics of land development and housing to have two operations that ran on different cycles,” Sherriff-Scott notes. “It has turned out to be a very successful operation.”

Minto entered the Toronto market in the mid-1980s with a pair of condo projects in Scarborough: Optima on the Park and Minto Plaza. “If we were going to expand in Canada, there didn’t seem to be any other logical place to go,” says Sherriff-Scott.

The company expanded its Toronto presence over the years, primarily through condo projects but also with single-family homes across the GTA.

It was as an early adopter of green-building practices. In the early 1990s, Minto’s Innova House, a prototype eco-home built in Kanata, served as a showcase for sustainable technologies such as solar power.

Minto became one of the province’s leading green developers, retro-fitting its entire rental apartment portfolio with energy-conserving features, such as low-flush toilets. “At one time, we were the largest purchaser of low-flush toilets in North America,” Sherriff-Scott says.

When Minto Midtown received LEED Gold certification in 2009 – making it the largest multi-residential building in the country to earn the designation – it represented the culmination of the company’s forward-thinking green strategy.

With a dedicated green division focused on carrying out its sustainable building strategy, Minto has vowed that all of its future condo buildings will meet the LEED standard, including eco-friendly features such as dual-flush toilets, all-off switches, heat recovery ventilators, rainwater harvesting and multi-chute recycling.

The company prides itself on being able to educate buyers on the virtues of green living.

“When customers ask, ‘Why should I pay more to have a sustainable building?’ our salespeople say, ‘Why would you want to move into a building that would be obsolete the day you took occupancy?’ ” Sherriff-Scott says.

“It’s going to cost less money to live in the suite – less on utilities and on maintenance fees,” he adds. “If you can make folks understand that it’s not only good for the environment, but it’s good for them personally, in terms of what they’re going to pay to live there, that resonates with them.”

“And if people can understand those benefits, then, as a company, you have a competitive advantage.”

—————————————————————————————————–
Contact the Jeffrey Team for more information – 416-388-1960

Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.

—————————————————————————————————–


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  • With no sign of cooling in Toronto condo market, housing starts to rise sharply

    Julian Beltrame, The Canadian Press

    Canada’s home-building industry was unexpectedly hot in March – particularly the condo sector in Toronto.

    The latest data on residential construction surprised analysts Wednesday, with Canada Mortgage and Housing Corp. reporting 14,517 actual starts in March, giving a seasonally adjusted rate of 215,600 units a year.

    That constitutes a 5% jump from the previous month and the highest level of starts since the fall of 2008.

    As well, CMHC upgraded its estimates for January and February, suggesting home construction was a key component of economic growth for Canada in the first quarter of this year.

    Ontario, particularly Toronto, had the country’s biggest increase in multiple-dwelling units, a group that includes condos and apartments. Multiple starts in the province jumped by 50% on a seasonally adjusted basis.

    “Certainly we think the housing sector will downshift at some point … but we’re not quite at that point yet,” said Peter Buchanan, an analyst with CIBC World Markets.

    Comment: Sure, but is it next year or in 10 years? It is no use making suppositions without any sort of data.

    “Clearly low mortgage-financing costs are helping to support the segment. This kind of level of starts is certainly above the underlying level of household formation by 20,000 or 30,000 (annually).”

    Comment: That is pretty low. There are 100-110,000 people immigrating to Toronto annually alone. Never mind those moving out of the family home or changing from renting to buying. I would say there are 150,000 people entering the housing market every year. Even with a chunk of them renting, they need somewhere to rent. With 2-3 people per family unit, you are closer to 50,000 or even 70-80,000 new households in the GTA every year.

    Buchanan said the condo market may be sizzling due to demographics as baby boomers downsize from larger, detached homes, as well as international speculation and a trend to more downtown living among Canadians as the cost of commuting increases with rising gas prices.

    CMHC said the condo trend is not sustainable, and many analysts agreed.

    There is anecdotal evidence of a “shadow condo inventory” in Vancouver and Toronto, units that have been sold but are unoccupied and not for rent, said Scotiabank economist Derek Holt.

    Comment: So one person makes up these “shadow” units and now everyone talks about them? Who cares, they are bought and paid for and not for sale.

    These unoccupied units could signal foreign investors who see Canada as one of the few global real estate plays that offer good returns, Holt said.

    Comment: So the “shadow” units are a good thing? Another article said they were bad. Whatever, I am not even sure I believe they exist.

    But it’s always tricky to predict when or if a bubble will burst, he warned.

    Comment: Nope, it is easy here. There is NO BUBBLE. Thus, it will not burst.

    Holt noted that as far back as 2008, some were calling for Canada’s housing market to plunge due to the same pressures that caused the U.S. market to collapse. However, Canadian real estate hasn’t followed the same path.

    Comment: Yup, those “experts” sure know what they are talking about. And the Toronto condo market was supposed to collapse back in 2003. I just feel bad for those who put too much stock into these people. I know of someone who sold off all of their investment properties last year, fully expecting the market to drop. Now those properties are worth 10% more. I do not even want to think of how much money they lost…

    “We know there are stressers in the Canadian marketplace just as there were in the U.S. It’s just that you can never time the point at which they turn abruptly in the other direction,” he said. “There would need (to be) a shock.”

    Comment: What stressors? We do not have a sub-prime market, which is what destroyed the US market. We have rising employment, which they did not have then. We have a stronger economy than they did. I keep hearing about these stressors but no one can point to any – except to say what “might” or “could” happen. Guessing about possibilities does not make them real.

    Speaking in New York on Tuesday, Finance Minister Jim Flaherty repeated his view that the housing market is slowing, adding he has no plans to tighten mortgage rules for a fourth time in six years.

    “I would prefer for the market itself to correct to the extent that a correction is necessary,” Flaherty said.

    Flaherty did repeat his budget pledge to make changes to CMHC’s rules for insuring mortgage loans, saying both his Finance officials and the Office of the Superintendent of Financial Institutions were engaged in the process.

    Moody’s rating service said Wednesday it foresees a soft landing for Canadian housing – not a crash – with prices rising a modest 1.1% this year on average.

    Comment: Wow… at least that is more honest. A soft landing is prices rising “only” 1.1%. Better than the half-baked calls for prices to drop 25%. I bet we see national prices rising more than 1% by the end of the year, with the local Toronto market closer to 8-9%.

    “But downside risks are present,” it added. “Should growth in the U.S. slow, we believe Canadian house prices would fall (slightly). Should the U.S. fall into an outright recession, Canadian house prices would fall 5.6% in 2012 and 10.3% in 2013.”

    Comment: Why? US growth has been essentially negative for years now – and we have done nothing but grow. And now their economy has suddenly kick started again – which should only mean good things for us, by that logic. And there is no evidence for the US to have a recession, none at all. Like I said above, playing the guessing game does not benefit anyone.

    —————————————————————————————————–
    Contact the Jeffrey Team for more information – 416-388-1960

    Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
    They did not write these articles, they just reproduce them here for people
    who are interested in Toronto real estate. They do not work for any builders.

    —————————————————————————————————–


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  • Canadian housing starts rose in December

    CTV News

    With home construction starts rebounding in December, Canada’s builders showed few signs of slowing down despite persistent warnings about high levels of consumer debt and economic uncertainty.

    The Canada Mortgage and Housing Corp. reported Tuesday that house starts rose more than expected to more than 200,200 units last month — from 185,600 in November — with condos in Toronto and the Atlantic region leading the way.

    The increase beat economists expectations and again raised the issue of when Canada’s housing market would begin to cool to what analysts regard as a more sustainable, replacement level.

    There’s a suspicion that at least some types of housing in some markets has been overbuilt as builders and consumers take advantage the low interest rates that have been available for several years.

    “There is now a large overhang of completed, but unoccupied multi-units as low interest rate likely fuelled some overbuilding in the condo market, which puts some downside risk to future building in this sector,” said TD bank economist Diana Petramala,

    Petramala estimates activity in the new year will cool to a sustainable annualized range of 175,000-185,000 units. The monthly statistics released by Canada Mortgage and Housing Corp. attempt to adjust for seasonal variations in starts.

    Interest rates are not expected to increase in the coming year, but analysts noted that Canadian households are already at record high debt levels, and the growth of both jobs and income has stalled.

    Some analysts, such as David Madani of Capital Economists, have suggested Canada’s home prices might fall as much as 25% in the next few years, while the Bank of Canada has also forecast a correction, although much more mild.

    December’s rebound, however, concluded another solid year in Canada.

    For 2011 as a whole, the preliminary estimate is that 193,000 units were begun, with the last six month seeing an average pickup of 200,000 annualized.

    Scotiabank’s Derek Holt said it was unclear whether housing would add to gross domestic product growth in the fourth quarter, given that it was even stronger — in terms of starts — during the third, when the economy expanded by 3.5%.

    “What we don’t know is how renovation spending performed during the quarter and some value-added administrative functions to round out the full perspective on how housing contributed to GDP growth in Q4,” Holt explained.

    December’s starts are seasonally adjusted and projected over the year — the actual number of units begun in December was 16,576.

    The seasonal figures attempt to adjust for the impact of slow and busy periods during different parts of the year.

    Canada Mortgage and Housing Corp. says urban starts rose in December by 52.9% in Atlantic Canada, 35.3% in Ontario and 9.0% in Quebec.

    They fell 19.8% in British Columbia and 11% in the Prairies.

    Starts of single homes in urban areas increased by 3.5%, while urban starts of multiple dwellings — condos, apartments and retirement homes — rose by 14.5%.

    —————————————————————————————————–
    Contact the Jeffrey Team for more information – 416-388-1960

    Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
    They did not write these articles, they just reproduce them here for people
    who are interested in Toronto real estate. They do not work for any builders.

    —————————————————————————————————–

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