Toronto The Millwood | 186.3m | 54s | Times Group | Core Architects

[Archii]

Oh right, this is rental...that's how this is even starting. Well then, this'll be something to watch over the next few years. I'm not expecting anything pretty, but, this'll be a huge set of towers for the area.

As a local, I am just looking forward to that awful parking lot being converted to something more useful.

 

[GenerationLee]

I agree, that'll be good. I still find this a bit too tall and well...the podiums very lacklustre, but, it's just minor issues ultimately.

 

[Archii]

I agree, that'll be good. I still find this a bit too tall and well...the podiums very lacklustre, but, it's just minor issues ultimately.

Agreed

 

[Archii]

Demo…

 

[Northern Light]

Resubmission here (zoning), they would like another 10 floors on both towers.

The two towers combined will have 10 elevators at tower level for an average of 1 elevator per 100 units.

@Paclo

 

[ProjectEnd]

Whyyyyyyyyyyyyyyyyyyyyyy?

 

[Koops65]

Perhaps more units = more $$?

 

[ProjectEnd]

Perhaps more units = more $$?

No, it's just more vacancy. Anything they can't rent quickly sits empty and destroys the project's value proposition. This doesn't work like a pre-con condo sale 3 years ago where no number of units was sufficient.

 

[1Ć0]

Resubmission here (zoning), they would like another 10 floors on both towers.

 

[Northern Light]

No, it's just more vacancy. Anything they can't rent quickly sits empty and destroys the project's value proposition. This doesn't work like a pre-con condo sale 3 years ago where no number of units was sufficient.

I'm not that far from Bela Square and I can tell you, based on night time illumination that lease up is not going well. I don't think they've reached 25%. I'm fascinated by the ferocity of the resistance to cutting the asking rents. I get the desire not to firesale, but for buildings that are not subject to rent control, there is room to forward adjust. No one will want to lose a good tenant by jacking 25% in one year, but if the market gets hot, you can start bumping ahead of inflation by 5 or 10%.

Getting 80% of your desired rent has to be better for the books that carrying an 80% vacancy with no rental income on said units. Seems to be a common issue though, holding back supply rather than cutting into rental rates.

***

Bringing that back to this site.........surely the existing numbers are predicated on higher rents than they are likely to achieve, at least in the first 2-3 years after completion (assuming they break ground this year). I do wonder what the bean counters are thinking and who is financing this?

 

[1Ć0]

I'm not that far from Bela Square and I can tell you, based on night time illumination that lease up is not going well. I don't think they've reached 25%. I'm fascinated by the ferocity of the resistance to cutting the asking rents. I get the desire not to firesale, but for buildings that are not subject to rent control, there is room to forward adjust. No one will want to lose a good tenant by jacking 25% in one year, but if the market gets hot, you can start bumping ahead of inflation by 5 or 10%.

Getting 80% of your desired rent has to be better for the books that carrying an 80% vacancy with no rental income on said units. Seems to be a common issue though, holding back supply rather than cutting into rental rates.

***

Bringing that back to this site.........surely the existing numbers are predicated on higher rents that they are likely to achieve, at least in the first 2-3 years after completion (assuming they break ground this year). I do wonder what the bean counters are thinking and who is financing this?

That's an interesting and to be frank, unsurprising insight on Bela Sq. I don't think Bela is a useful comp to the Yonge-Davisville area which has greater elasticity in terms of pricing and broader demand.

Brand new rental buildings are having a tough time in AAA locations today, let alone B and C areas. I'd be curious to see how DBS will fare at their Don Mills site - it could go the way of Bela Sq or Sloane (which I am getting mixed reviews on). I also understand lease up isn't as robust at Lonsdale as anticipated

 

[ProjectEnd]

That's an interesting and to be frank, unsurprising insight on Bela Sq. I don't think Bela is a useful comp to the Yonge-Davisville area which has greater elasticity in terms of pricing and broader demand.

Brand new rental buildings are having a tough time in AAA locations today, let alone B and C areas. I'd be curious to see how DBS will fare at their Don Mills site - it could go the way of Bela Sq or Sloane (which I am getting mixed reviews on). I also understand lease up isn't as robust at Lonsdale as anticipated

If you're talking about Metro Park, the tall one you see today is a condo. The rental is the much smaller midrise that's just getting going now. 2Fifteen is at the absolute top end of the market (surpassed only by The James now) so I understand that lease up has been slow. It's funny that they were renting at about $5.75 there two years ago (but again, that was the top end of everything) so everyone adjusted their day ones to like $6 with 3% growth and now they're all going to eat shit...