Toronto Kings Club at King High Line | 57.6m | 18s | First Capital | Kasian

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A little puzzled by what appears to be a slow rate of progress, and the sequence of activities in this building. The concrete form of the building seems to be complete, but little or no evidence of the building envelope components or the mechanical rough in work being done. While the concrete forming always precedes the other activities, most buildings would have much more visible progress in enclosing the sides of the building - often just a few floors behind where the forming work is taking place. Also, the mechanical rough-in often proceeds just a few floors below the concrete forming - once the temporary supports have been removed. With all the issues this development has been through, is there the possibility of problems with some of the sub-contractors, or sub-contractors being changed mid-project?
 
AHK said:
A little puzzled by what appears to be a slow rate of progress, and the sequence of activities in this building. The concrete form of the building seems to be complete, but little or no evidence of the building envelope components or the mechanical rough in work being done. While the concrete forming always precedes the other activities, most buildings would have much more visible progress in enclosing the sides of the building - often just a few floors behind where the forming work is taking place. Also, the mechanical rough-in often proceeds just a few floors below the concrete forming - once the temporary supports have been removed. With all the issues this development has been through, is there the possibility of problems with some of the sub-contractors, or sub-contractors being changed mid-project?
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I know of one other rental project where work has slowed due to the new rent control rules. The thinking being that waiting a bit later to complete the building and putting the units up later means being able to charge more for rent.
 
Tuscani01 said:
waiting a bit later to complete the building and putting the units up later means being able to charge more for rent.
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I don't follow this reasoning -- is there a limit to the rent that can initially be charged on completely new units? Don't the new regulations impact rent increases, and not initial rent levels?
 
Tulse said:
I don't follow this reasoning -- is there a limit to the rent that can initially be charged on completely new units? Don't the new regulations impact rent increases, and not initial rent levels?
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Correct, but once someone has moved in, the landlord can not raise the rent above the rate set by the Province. If they delay the opening, there is a chance that the market rate will be significantly higher than that limit. So the longer they wait or delay, the higher that initial rent can be set at.
 
Tuscani01 said:
Correct, but once someone has moved in, the landlord can not raise the rent above the rate set by the Province. If they delay the opening, there is a chance that the market rate will be significantly higher than that limit. So the longer they wait or delay, the higher that initial rent can be set at.
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That's only true for as long as the same tenants are in the unit. There is still vacancy deregulation, meaning everytime a tenant moves out of a unit, that unit's rent can be reset to the market rate.

By your logic, since "the market may be higher tomorrow" is a proposition that applies to every single day, nothing should ever be built for fear of locking in the price.
 
Tuscani01 said:
Correct, but once someone has moved in, the landlord can not raise the rent above the rate set by the Province. If they delay the opening, there is a chance that the market rate will be significantly higher than that limit. So the longer they wait or delay, the higher that initial rent can be set at.
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Sure, but that logic also applies to sales -- prices may be higher if one waits to sell. But I don't see a ton of projects already under construction intentionally delaying.
 
Capreit takes possession in 2018. There's no reason to rush it if I'm remembering correctly.
 
Tulse said:
Sure, but that logic also applies to sales -- prices may be higher if one waits to sell. But I don't see a ton of projects already under construction intentionally delaying.
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To a point yes, but rentals aren't financed the same way as condos.

The developer doesn't hold the mortgage of a condo. The cost is covered by purchasers who's deposits are a necessity to allow the developer to begin construction. The developer has to deliver units to purchasers. Delays will cost the developer money. Developers do hold back some units sometimes though and sell them later in the process for higher prices.

I'm not saying this is 100% the case in this project, but as I said, I know it's happening at another rental based on info from someone I deem as a reliable source.
 
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