Is Alex Bozikovic's contention that this project will make hundreds of millions of dollars for David Mirvish going to be repeated on UrbanToronto without being challenged?
This project is going to cost a lot more to build than the average owing to it's ever-changing and expensive cladding, floorplates, finishings, etc. The architect is more expensive than most too, much more in fact. Then there are the features in the podiums that have to be paid for: one being given free of charge to OCAD U, the other being turned into a large art gallery. After however many tens of thousands extra it's going to cost per unit to build those features, you'd then have to add on another $40,000 per unit on average to clear $100,000,000.
We're seeing luxury units languish on the market in Toronto. Trump, Shangri-La, Aura, the Ritz Carlton, 77 Charles West, and many more buildings have lots of million dollar units sitting unsold. This is such a large project, it has to be priced right to work. Sure a good number of people will pay a premium to live in M+G, but the state of the market at the moment does not favour the difference being that big, and definitely not on smaller suites: investors won't buy what they can't cover from renters (and Festival Tower showed that renters aren't normally willing to pay a premium for OTT buidings).
It comes down to this: Mirvish should make many millions on this project if it's priced right, and nothing if it's priced too high. Claiming he will make hundreds of millions? Silly talk.
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