As Condo Investment Advisors who focus on Toronto’s pre-construction condo investment market, one of the most difficult things we face is the following comment:
“Giovanni & Susan…## years ago you told me about project XYZ in ABC neighbourhood. I didn’t invest because I was afraid of the area. I should have listened to you!”
The phrase that pains us the most to use with clients is:
“We told you so.”
A large part of our role with clients is to use data and models to project which areas of the city will have future growth.
Based on statistics, the areas that have shown the best growth are either:
a) Projects close to major transit (like subway stations)
b) Projects along the waterfront
c) Projects in the early stages of multi-phased developments and revitalization projects
‘WE TOLD YOU SO’ AND REVITALIZATION PROJECTS
Most investors understand the benefits of being close to subway stations or the waterfront. Where we see the most resistance (and usually the largest returns on investment) are multi-phased developments and revitalization projects.
This is also where we have the most ‘we should have listened’ comments.
For example…
REGENT PARK
Back in 2009, we advised our clients to look at the Regent Park revitalization project. Daniels, one of the country’s largest developers, made a deal with the city to literally knock down all the buildings in the area and develop a brand new, vibrant community.
The Regent Park area was riddled with bad news, and had a terrible stigma.
The first project to launch in 2009 was One Cole at the corner of Parliament and Dundas. Many investors had reservations because of the area. The project launched back then in the $380 per square foot range. Today, projects are trading in the $550/sqft range. The developer has recently launched their fifth new development, with many more to come.
Anyone who invested at One Cole is super happy right now. The area has completely changed, and has only been through 2 phases of its 6 phase redevelopment. It is currently the largest Urban Revitalization project in North America.
We can promise – you will NOT recognize the area in a few years.
LIBERTY VILLAGE
8-10 years ago, if you told your colleagues that you wanted to invest in a residential project in Liberty Village, you would have been called ‘crazy’. The area was an industrial ghost town. Smart investors that made the leap, however, have seen their property values DOUBLE.
If you travel back in time five years to 2009, we were advising our clients to invest at projects like The Tower and King West Condos, which were also in the $380-$400/sqft range.
The area is now trading in the mid to high $500’s per square foot, and is one of the most popular areas to live downtown – vibrant with restaurants, pubs, bars, retail, and a booming community.
WEST DON LANDS
The West Don Lands neighbourhood is our current passion, just like Liberty Village and Regent Park were 5 years ago.
The area is bound from King Street to the north, Lake Ontario to the south, The Distillery District to the west and the DVP to the east.
This area was literally a mound of dirt a few years back. 5 years from now, we expect the area to be just as ‘hot’ as Liberty Village.
The big difference is that West Don Lands will meet all 3 of our initial criteria – Major Transit, Waterfront, AND a revitalization.
The project we’re about to recommend to all our top clients is RC3 Condos which will be the crown jewel of West Don Lands.
Please don’t make us say ‘We Told You So’ every again.
Visit this RC3 Condos page to learn why we’re so excited.