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  #101  
Old Posted Apr 20, 2008, 5:39 PM
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Life of luxury
Sustainable features in high-end project in Eau Claire area
Kathy McCormick, Calgary Herald
Published: Saturday, April 19, 2008

Solaire, a luxury tower that will shine a light on sustainable design principles in downtown Calgary's west end, will add another dimension to the "urbanization of Calgary," says a company involved in the project.

"A lot more people are living in the downtown core today," says Chris Norton of the Vancouver-based Maverick Real Estate Corp. "The urbanization is already happening -- and LaCaille plays a big role in that."

Solaire is the latest project by the LaCaille Group, which began the process with the LaCaille on the Bow restaurant. It became a developer when it built a luxury tower attached to the restaurant.

Since then, it has constructed, or plans to build, several other towers in the inner-city communities, and it is expanding to other areas of Calgary.

Besides luxurious, high-end standards, plans for Solaire include such eco-friendly aspects as green roofs on the lower roofs of the building, says Gary Mundy, an associate with GEC Architecture.

The roofs will have soil planted with natural grasses, he says.

Two points on the east facing wall will also be "living walls," says Mundy. "A very light wire mesh will be placed on top of the exterior at grade and on the third floor of the building facing east, then vines will be planted to grow up the walls. That helps keep water hitting the building from running directly into the storm drains. It's a way to address stormwater management."

Inside the buildings, each unit will be equipped with heat recovery ventilators, reducing energy needed for cooling and heating individual suites by as much as 35 per cent. Low-flow plumbing fixtures will also be used.

The building, itself, will have ample bicycle storage in place to encourage less use of vehicles. "In addition, the building is just a five minute walk from trains and buses," says Mundy.

Norton likens the Eau Claire area to Vancouver's Coal Harbour.

"The Beltline is like Yaletown in Vancouver, with another seven to 10 years before all the sites are built out," he says.

"The Eau Claire area will be much faster, with a significant number of residential units planned or being built, such as the redevelopment of Eau Claire Market, the next phase of the Princeton, and others along the waterfront -- and retail and restaurants are included in that."

Eau Claire is a small area in the heart of downtown.

It's bounded by 10th Street S.W. to the west, 2nd Street S.W. to the east, 3rd Avenue to the south and the Bow River to the north. Development has been high-end, luxury condos with river views.

"The whole area is already being developed from Louise Bridge (at 10th Street) to Eau Claire," says Norton. "It's established, it's within walking distance of the social scene and downtown office space, and it's near the water."

That, alone, has been one of the top reasons the latest condo project to grace the area's west end has already garnered so much interest, says Norton.

Anyone interested should register at www.solaireliving.ca soon to get on the priority list before sales start.

"We have an interesting mix of potential buyers, from young professionals from (ages) 25 to 35 who want to be close to the downtown core for work and the nightlife, as well as Kensington, to empty nesters who want to relocate closer to the city centre in an area that's being re-developed, to business people who are buying to use it as a pied-a-terre."

A pied-a-terre is lodging for occasional or secondary use.

Solaire will be located at 4th Avenue and 8th Street S.W., and it's already under construction.

The 22-storey tower will have 132 suites, with one- and two-bedroom plans, including four two-bedroom, two-level penthouses -- and of course, because of the location, outstanding views.

One-bedroom units are 711 to 765 square feet, two-bedroom models are 1,143 square feet, and the penthouses are 2,012 to 2,105 square feet.

"These are the highest level of specifications we've ever done," says La Caille president Peter Livaditis. "The outside will be very sleek and contemporary, and inside, standards will include such things as hardwood floors, finishings like granite countertops, and high-end appliances by Dacor."

Dacor is a stylish California brand that is usually found only in high-end, single-family homes.

Such attention to detail is a hallmark of the LaCaille Group -- and that's another reason people have been so receptive to the latest project, says Norton.

"When people heard another LaCaille building was under construction, it generated a lot of interest," he says.

"They've built a number of sophisticated buildings in the west Eau Claire area, so a number of investors have come on board. As well, the company has an unusual amount of loyalty and following from people who have bought in the past."

Sales will start once the sales centre opens in another LaCaille project, Five West, at 924 5 Ave. S.W. Scheduled to open later this spring, hours will be noon to 5 p.m. every day except Fridays.

The project is unique in other ways, says LaCaille vice-president Al Schmidt.

"We're building an affordable housing project next door under contract with Calgary Housing Co," he says. "It's important to establish a new benchmark for affordable housing in the city to give people living there a sense of pride."

The building, to be known as Louise Station, will have 88 units in it and it will be built to complement the exterior of Solaire. It, too, is already under construction.

"It shouldn't be any different," says Livaditis, adding that diversity of housing is what makes a neighbourhood.

Norton agrees: "That's what adds a sense of neighbourhood. Nobody wants it to become a gated community. The diversity is part of the vibrancy of a community."

The project marks "a nice transition for people to move out of social housing to market," says Schmidt.

Solaire has another unique feature. A much-needed fire hall and EMS station will be tucked under the tower.

"It will be synchronized to traffic lights, so the vehicles won't need to use sirens until they're well away from the building," says Schmidt. "They'll use their lights only. As well, residential units don't start until the fourth floor, and there will be soundproof glass on bedroom windows" as an acoustical barrier, he says.

The proximity of fire trucks means insurance premiums for units should be lower as well, says Norton.


In Short:

BUILDER/DEVELOPER: LaCaille Group.

PROJECT: Solaire, on the corner of 4th Avenue and 8th Street S.W. It will consist of a 22-storey tower with one- and two-bedroom units, as well as four penthouses. The mixed-use development will have homes starting on the fourth floor. The first floor will include a fire hall and EMS station. Next door to the project, LaCaille is developing Louise Station, an 88-unit affordable housing project to complement the tower.

PRICES: Have yet to be released.

INFORMATION: Check the website at www.lacaille.ca. Register at www.solaireliving.ca. A sales centre will open later this spring on the site of another LaCaille project, Five West, at 924 5 Ave. S.W. in the near future.

HOURS: Once open, the sales centre hours will be noon to 5 p.m. daily except Fridays.


© The Calgary Herald 2008



Bold actions needed for sustainable growth
Calgary initiative must join regional planning efforts
Jim Dewald and Bev Sandalack, For the Calgary Herald
Published: Saturday, April 19, 2008

Our recent series of articles focused on the inherent opportunities available to land developers who embrace the City of Calgary's Plan It initiative.

Plan It is a comprehensive study of Calgary's future, aimed at finding ways to minimize our city's ecological footprint, while maximizing the vitality and social attributes of living in a cosmopolitan centre.

While we had many thoughts for developers, we would be remiss if we didn't mention two critical actions that need to be taken by the City of Calgary political and administrative leaders.

Without the proper support from within and throughout city hall, Plan It runs the real risk of being another pretty book on a shelf.

The first priority is a total commitment, at all levels of city hall, to exploring and adopting more sustainable patterns of growth -- sustainability when measured on the basis of social, ecological, and fiscal impact.

Unfortunately, we hear all too often that developers receive support from one corner, but resistance in others fiefdoms within city hall.

The first supporters of higher density mixed-use patterns of growth were the city planners (although there are some hold-outs even within this group).

City planners have over the past few years successfully educated the majority of aldermen, but even though the politicians are onside, resistance in other departments continues to severely undermine some tremendously positive initiatives.

Our research indicates that the primary culprits are roads and parks staff.

For whatever reason, they seem to have power to argue that "the way we've always done it" takes precedence over specific council directives (side-note; if that is how it was "always" done, how did the inner-city neighbourhoods achieve narrower streets, smaller curb radii, narrower lanes, street trees in boulevards, more trees in parks and so on?)

How can this nonsense be permitted? Why is it supported?

What can be done to reverse the trend of threats, whether it is arguments that the snowplows will damage the curb, the fire trucks can't make the corner, the garbage trucks are too large for the lanes, or the tractor-based lawn mowers can't work around trees and benches?

To build a great city, we desperately need an attitude of "we can do it" over "we're stuck and refuse to change."

Support of bold developer initiatives, including those in line with the objectives of Plan It, could be a very positive and inspiring shift for city staff.

But it would require more support, encouragement, incentives and direction than what currently occurs in the city.

Unfortunately, city hall has been famous for rewarding those who are the best at maintaining the status quo and who resist change over those who champion change.

It's time for a fresh new approach, and we would target senior administrators as being most responsible for ensuring that their teams are 100% on side.

The second priority is at a much different level --regional planning.

There is a very real danger that goals to achieve greater vitality and sustainability championed in Plan It will be threatened by surrounding municipalities if they continue to permit sprawl patterns of growth, transferring much of the downstream impacts (such as transportation needs) onto the shoulders of the region's primary employment districts, all of which are within Calgary's boundaries.

Recent stories in the Rocky View Weekly (the newspaper of the rural Municipal District of Rocky View) indicate that Calgary Mayor Dave Bronconnier had taken bold steps toward finding solutions for regional planning and utility servicing in early 2004.

Without pointing fingers, this important initiative did not come to fruition.

But it was a great start and we encourage continuation of these efforts.

This past week, the provincial government introduced the notion of once again formalizing regional planning, and Bronconnier has indicated his support.

Without more details, it is premature for us to throw our support behind this plan, but we certainly like the concept of returning to institutionalized regional planning.

Still, as a provincial initiative, one would expect to see more say given to rural municipalities than would be preferred by city hall.

This will demand full engagement of Bronconnier's collaborative leadership skills, and council's intestinal fortitude to support a collaborative regional approach that would recognize that we live, work and play within a regional context.

We will all suffer the economic, social and environment costs of another failure in establishing a regional planning framework.

We are long overdue for the Calgary region to follow a new paradigm in co-operation that recognizes the omnipresent nature of regional issues, and the desperate need for regional solutions.

Jim Dewald, PhD, is Assistant Professor, Strategy and Global Management at the Haskayne School of Business at the University of Calgary, and a partner with Peters-Dewald Land Co.

Bev Sandalack, PhD, is co-ordinator of the Urban Design program in the Faculty of Environmental Design at the University of Calgary, member of the Calgary Urban Design Review Panel, and co-author of The Calgary Project, a book about Calgary's urban development.


© The Calgary Herald 2008
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  #102  
Old Posted Apr 25, 2008, 6:18 PM
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More suite dreams for Calgary condos
UPDATED: 2008-04-25 03:17:52 MST


Luxury condominium project may see prices hit new heights

By SHAWN LOGAN, SUN MEDIA

The sky could be the limit for the soaring cost of Calgary luxury condos.

Plans for a new 15-storey condominium project in Eau Claire along the Bow River could see its units eclipse the high water mark for pricey downtown dwellings, said Ed Jensen, president of the Calgary Real Estate Board.

Concord Pacific Inc. is building a high-end residential dwelling at 1 Ave. and 6 St. S.W. after snapping up the parcel last December.

Jensen said Calgary has seen more condos surpassing the seven-figure mark in recent years and with the new project seeing 185 suites starting at the $1-million mark, the large terraces and townhouse units could easily climb past the city's previous high.

"Certainly we're seeing a lot of confidence by the money men in Calgary's economy to see projects like this," he said.


"Calgary's been slow to catch on to the luxury condo market -- compared to other international cities, we're a bargain."

Since 2000, there have been 80 condos worth more than $1 million in Calgary in the downtown core, 47 of those in the prime Eau Claire area.

Currently, there are 39 condos for sale in Eau Claire ranging from a one-bedroom suite for $204,000 to a luxury condo priced at $3.25 million.

The most expensive condo in Calgary's core to date, also sold in Eau Claire, rang in at $4 million when it changed hands last October and Jensen said he expects that mark to fall when new units come up for sale.

Concord spokesman Peter Udzenija said it's too early to determine a price point.

"We're so far away from that right now but they will definitely be on the high end," he said, noting they will sell for a minimum of $1 million.

"We wanted to create something for some of the old money in Calgary."
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  #103  
Old Posted Apr 29, 2008, 7:19 PM
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Calgary vacancy rate jumps amid sluggish condo sales
Last Updated: Monday, April 28, 2008

Calgary's rental vacancy rate is heading back up after hitting an all-time low of 0.5 per cent in 2006. (CBC)Calgary's rental vacancy rate has climbed to almost four per cent, in part due to the slow sales of both new and converted condos, says a group that represents landlords.

Almost 40 per cent of new condominium units built last year, as well as condo conversions that did not sell, are now being rented out, said Gerry Baxter, executive director of the Calgary Apartment Association.

"The market is really restabilized and you know, right now it's like a balanced market," said Baxter. "It's good for both the landlord and very good for the tenant as well."

In a report earlier this month, the Canada Mortgage and Housing Corporation projected the rental vacancy rate would rise to two per cent this year, up from last year's 1.5 per cent. But based on information from members, Baxter said his group believes the rate is closer to about 3.8 per cent.

Another reason for the cooling rate is that fewer renters are moving to Calgary. This year, the apartment association is expecting only half of the 36,000 new renters who relocated to the city in 2007.

'We're able to bring more supply on and that means we are able to help more families.'

http://www.cbc.ca/canada/calgary/sto...acancy-up.html
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  #104  
Old Posted Apr 29, 2008, 7:53 PM
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This article is wrong. There were not 36,000 new renters here last year, that was the entire population increase in 2006, of which some of them were renters and some were babies and some were home owners and maybe some were homeless.
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  #105  
Old Posted May 13, 2008, 6:40 PM
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It's no way to build a neighbourhood, never mind a city

Kevin Brooker
For The Calgary Herald


Monday, May 12, 2008


The headline said it all when a recent national newspaper's survey of Canada's often broken downtowns visited Calgary: "When shiny offices conceal a wasteland."

Unlike most of the people now floating design solutions to our dysfunctional core, I have considerable experience living in that wasteland. I spent about a dozen years in the '80s and '90s residing either on or within 50 metres of the Stephen Avenue Mall.

Since it doesn't really seem to have changed all that much, I'll tell you how it is to live there: very difficult. For starters, our efforts to establish lofts in unused downtown spaces were routinely rebuffed by everyone from the fire department to City Hall.

Those ratholes we could rent were fraught with logistical problems. When they took the grocery store out of the Bay basement, for example, to replace it with a much more expensive deli, I came to a crucial realization: I need a sack of potatoes, not a croissandwich.

Next, they closed the Co-op No. 1 on 11th Avenue. I had little choice but to walk or ride to Chinatown to buy food. Then, as now, this involved negotiating a stop light at every corner. If, when traffic was light, you didn't jaywalk, or on a bike, simply blow off the signal, you'd take forever getting there.

I guarantee that anyone who now lives in Eau Claire, if they do their own cooking at all, probably stocks up by driving to the Costco in the suburbs.

There was no laundromat downtown in those days either. I had to stuff my clothes in a backpack and take a bus to Mission or Sunnyside. As far as I know, downtown dwellers lacking washer-dryers in 2008 still have to do the same thing. Except the Sunnysides of the world have gone through their own devolution, and now feature relatively little in essential services.

Despite now living near the so-called Kensington shopping district, I can honestly say I do virtually no business there, having little need for giftware and pottery. It has become scarcely more than a destination market for upscale, usually suburban visitors seeking a hint of charm with their tschochkes.

A long-extinct business used to have a sign on 10th Street: Uneeda Bakery. Damn right I do. And a butcher and greengrocer of the non-yuppie variety and, I don't know, somewhere I could put air in my tires.

But back to downtown, those windy glass canyons where you don't want to walk unless you absolutely have to. As much as I welcome efforts like Creating Calgary and City Hall's own Centre City Plan, I can't see any way to make most of downtown more livable short of imploding block after block of Class B office buildings. The Plus-15 system killed street life forever, of course, but even if it were eliminated, there is no conceivable way to retrofit those boxes in a people-friendly way.

It wasn't as if any of this sneaked up on us. Thirty years ago I was among many Calgarians who watched in horror as our feckless leaders allowed the wrecking ball to drop on almost every single heritage building worth keeping.

Instead, we threw in our lot with windows that don't open, acoustic tile ceilings, fluorescent lighting, and any number of other traits that are inimical to human health and happiness.

And believe me: if Calgary developers don't wind up building a whole lot more of those, I owe you all a steak dinner.

As part of that still-considerable population sector which gains no direct benefit from a $120 barrel of oil, I simply do not trust the commercial imperatives, which will inevitably seize the day. It's as simple as this: the kind of places I want to visit will never afford the rents charged by newly constructed buildings. Period.

Thus, I fear that my development preferences will always be secondary to those of the tower-builders.

Kevin Brooker's column appears every Monday.

© The Calgary Herald 2008
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  #106  
Old Posted May 13, 2008, 6:42 PM
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Vacancy rate down, parking costs up for downtown Calgary office space

Mario Toneguzzi, Calgary Herald
Published: Tuesday, May 13, 2008
CALGARY - There continues to be a "strong appetite" for premium office space in downtown Calgary and that is being reflected in a decreasing vacancy rate and steady net lease rates, says a local commercial real estate report.

CB Richard Ellis says the vacancy rate for downtown class AA office space has declined from 1.5 per cent in the fourth quarter of 2007 to 0.2 per cent in the first quarter of this year. Of the 31.7 million square feet of net rentable area in the downtown core, AA space accounts for a 21.8 per cent share.

Average asking net lease rates for premium office space remained virtually unchanged, declining 0.1 per cent from $51.64 per square foot to $51.37 per square foot.

The CBRE downtown office market report says the overall vacancy rate climbed from 3.4 per cent in the fourth quarter of 2007 to four per cent in the first quarter of 2008.

"The 0.6 per cent increase in vacancy this quarter is modest in comparison to the increase realized in the fourth quarter of 2007, when downtown vacancy climbed from a 10-year low of 0.5 per cent to 3.4 per cent as the downtown market grew by 1.5 million square feet due to the completion of five new office towers," said the report.

At a four per cent vacancy rate, the Calgary downtown office market is "still strong and continues to be a landlord's market," said CBRE. "In general, asking rates in downtown Calgary have stalled this quarter, pulling back slightly to $37.38 per square foot from $37.92 per square foot in the last quarter of 2007," said the report.

CBRE said that as net asking rates for office space in downtown Calgary level off, underground parking rates are on the rise.

"Less than a year ago, monthly parking rates over $500 were reserved for premium buildings in the most central of downtown locations," said the report. "However, with the ever increasing scarcity of parking spaces in the downtown area, parking rates well over $500 per month for underground reserved stalls located in the core are becoming commonplace."

In 2007, 1.5 million square feet of new office space was added to the downtown market inventory, but so far this year, there have been no new projects completed. CBRE said the only building in the pipeline for completion this year is 8 West (146,300 square feet), which is expected to be ready for occupancy in the third quarter.

Over 5.6 million square feet of office space construction is currently underway.

The Germaine (85,000 square feet), Bankers Court (256,000 square feet) and the redevelopment of the Barron Building (112,578 square feet) will provide more product in 2009.

By 2010, "significant" square footage will be added to the existing inventory with the completion of Jamieson Place (817,000 square feet), Centennial Place (776,750 square feet) and Centennial Place West (434,350 square feet).

CBRE said that in 2011, 2.7 million square feet of space is expected to arrive on the market with the completion of the Bow (1.7 million square feet) and 8th Avenue Place East (one million square feet).

Five other office developments totaling 3.4 million square feet are being proposed for the downtown core but have yet to be actively marketed, said the commercial real estate firm. The proposed buildings include Calgary City Centre (900,000 square feet), First Canadian Centre (900,000 square feet), Palliser West (400,000 square feet), Palliser East (400,000 square feet) and 8th Avenue Place West (750,000 square feet).

mtoneguzzi@theherald.canwest.com
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  #107  
Old Posted May 14, 2008, 3:31 PM
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Corporate Calgary lusts for top offices
Downtown 'continues to be a landlord's market'

Mario Toneguzzi, Calgary Herald
Published: Wednesday, May 14, 2008
There continues to be a "strong appetite" for premium office space in downtown Calgary and that is being reflected in a decreasing vacancy rate and steady net lease rates, says a local commercial real estate report.

CB Richard Ellis says the vacancy rate for downtown class AA office space has declined from 1.5 per cent in the fourth quarter of 2007 to 0.2 per cent in the first quarter of this year.

Of the 31.7 million square feet of net rentable area in the downtown core, AA space accounts for a 21.8 per cent share.

Average asking net lease rates for premium office space remained virtually unchanged, declining 0.1 per cent from $51.64 per square foot to $51.27 per square foot.

The CBRE downtown office market report says the overall vacancy rate climbed from 3.4 per cent in the fourth quarter of 2007 to four per cent in the first quarter of 2008.

"The 0.6 per cent increase in vacancy this quarter is modest in comparison to the increase realized in the fourth quarter of 2007, when downtown vacancy climbed from a 10-year low of 0.5 per cent to 3.4 per cent as the downtown market grew by 1.5 million square feet due to the completion of five new office towers," said the report.

At a four per cent vacancy rate, the Calgary downtown office market is "still strong and continues to be a landlord's market," said CBRE.

"In general, asking rates in downtown Calgary have stalled this quarter, pulling back slightly to $37.38 per square foot from $37.92 per square foot in the last quarter of 2007," said the report.

Greg Kwong, regional managing director for CBRE, said the tight market has been influenced by a lack of supply.

"Traditionally, over the last 20 years you've seen a separation between A quality space, B quality space and C quality space and the price differential is the difference," said Kwong.

"Over the last little while because of the lack of supply, there's been compression. So tenants have said 'listen, if I'm going to pay $30 to $40 a square foot for either a B or an A building, I might as well take the A building.'

"So you've seen a flight to quality."

Karen Barry, president of K.J. Barry Commercial Real Estate Corp., said there is strong demand, especially in the energy sector, for quality downtown space.

"As far as getting premium space, there's still a shortage of larger contiguous space available," said Barry. "As an example, if you're a 200,000- or 300,000-square-foot tenant, your options are fairly limited."

And the result of limited options, she said, is lease rates remaining very strong.

Bruce Irvine, vice-president for business development and retention at Calgary Economic Development, said in terms of the development pipeline, bringing on AA space in Calgary is starting to catch up. Assembling the parcels of land in the right locations can also take some time.

"AA needs to be in the highest and most desirable places in terms of your location. So that took a little longer and it's still catching up a little bit," said Irvine, adding employers are thinking about staff retention and AA space has a greater array of amenities.

"In this market, that building becomes part of the physical manifestation of not only the company but also it's starting to be the physical manifestation of our city. And as the confidence in Calgary continues the kind of building we're going to see with more and more key architects, with more and more of these kinds of buildings that are really quite an attractive and (a) competitive thing worldwide is going to continue," Irvine said.

CBRE said that as net asking rates for office space in downtown Calgary level off, underground parking rates are on the rise.

Less than a year ago, monthly parking rates over $500 were reserved for premium buildings in the most central of downtown locations," said the report.

"However, with the ever increasing scarcity of parking spaces in the downtown area, parking rates well over $500 per month for underground reserved stalls located in the core are becoming commonplace."

In 2007, 1.5 million square feet of new office space was added to the downtown market inventory, but so far this year, there have been no new projects completed. CBRE said the only building in the pipeline for completion this year is 8 West (146,300 square feet), which is expected to be ready for occupancy in the third quarter.

Over 5.6 million square feet of office space construction is currently underway.

The Germaine (85,000 square feet), Bankers Court (256,000 square feet) and the redevelopment of the Barron Building (112,578 square feet) will provide more product in 2009.

By 2010, "significant" square footage will be added to the existing inventory with the completion of Jamieson Place (817,000 square feet), Centennial Place (776,750 square feet) and Centennial Place West (434,350 square feet).

CBRE said that in 2011, 2.7 million square feet of space is expected to arrive on the market with the completion of the Bow (1.7 million square feet) and 8th Avenue Place East (one million square feet).

Five other office developments totalling 3.4 million square feet are being proposed for the downtown core but have yet to be actively marketed, said the commercial real estate firm.

The proposed buildings include Calgary City Centre (900,000 square feet), First Canadian Centre (900,000 square feet), Palliser West (400,000 square feet), Palliser East (400,000 square feet) and 8th Avenue Place West (750,000 square feet).

mtoneguzzi@theherald.canwest.com

- - -

Downtown Office Market First Quarter

(Average net lease rates)

Office category Price Per Square Foot

AA* $51.27

A $42.71

B $37.62

C $32.15

D $24.60

Source: CB Richard Ellis

*AA being the premium, top-class office space, based on industry standards including building amenities, age of building and location.

http://www.canada.com/calgaryherald/...f6191dcfd7&p=1
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  #108  
Old Posted Jun 10, 2008, 8:35 PM
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Housing market a mixed bag



calgary.ctv.ca

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POSTED AT 6:24 PM Monday, June 9


There is good news and bad news in Calgary's housing market for the month of May.

Single-family home starts are at their lowest level since the mid-1990's and have dropped 41 per cent since last year.

But while home starts are down, condo and townhome starts are up 108 per cent from May 2007.

Industry officials say that by the end of the month, the total number of condo and townhome starts could surpass the total for all of last year.

But the Canada Mortgage and Housing Corporation says most of the building is being done in a few neighbourhoods.

"A high level of high-rise condos are being built in Calgary and those tend to be location driven. In the Victoria Park area, you can see a whole new community being developed there," says Lai Sing Louie, CMHC analyst.

The CMHC says the downturn in home starts is likely only temporary and things should rebound in 2009.

The Calgary Real Estate Board says senior executives looking for low-maintenance condominiums are driving the market.

The CREB says buyers should take advantage of availability now before it dries up.

Sellers will have a more difficult time, officials predict. They will have to wait on the market for longer periods to get the price they were quoted last year.
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  #109  
Old Posted Jul 17, 2008, 2:50 PM
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Holy Cross pitching condo project
Michelle Lang, Calgary Herald
Published: Friday, July 11, 2008

The owners of Calgary's Holy Cross Centre are considering a major residential development on the former public hospital property in trendy Mission and have applied to the city to redesignate land use at the site.

Enterprise Universal, the company that owns the old hospital where a private surgical facility and other businesses now operate, has asked the city to redesignate the land to accommodate a mixed commercial and residential development.

Holy Cross representatives said they will work with city administrators to come up with a plan for the site after the Calgary Planning Commission recommended city council turn down the proposed change.

"We're looking at some kind of residential development," said Stephen Carter, a spokesman for Holy Cross, who said some medical services would probably remain on the site. "We're trying to get it rezoned for (potential) future uses."

Holy Cross has been at the centre of several controversies since the government sold the facility, once a major public hospital, to private interests during the public sector cuts of the 1990s.

Ald. John Mar said the site offers a "huge potential for redevelopment" because it encompasses several hectares of land in the city core. He said it isn't clear if the proposed project would involve tearing down parts of the old hospital.

"It's one of the most exciting areas of downtown," said Mar.

"I expect to see some medical component, some residential, some retail."

The Calgary Planning Commission, however, has recommended against approving the redesignation because Holy Cross did not submit a concept plan for what would be built at the site or an assessment of the impact on transportation in the area.

The Holy Cross's application was expected to go before city council Monday, but Mar said it will likely be tabled so the owners can work with the city on a plan for the site.
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Old Posted Jul 21, 2008, 2:57 AM
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Barriers prevent city from innovative development

Richard White
For The Calgary Herald


Saturday, July 19, 2008


The following is the first of a two-part series on innovative development.

Recently, a second delegation of Calgary developers, city officials and the mayor went to Dubai -- a city state in the United Arab Emirates -- to see the innovative developments happening there that are receiving worldwide attention.

John Torode perhaps summarizes it best when he tells me we are too caught up in our "Little House on the Prairie" thinking to be truly innovative.

Ald. Druh Farrell, arguably the biggest champion for innovation at city hall often says: "We are a city built by engineers," when we are chatting about how can we encourage more innovation at Calgary Planning Commission meetings. The same frustration is also expressed by members of the Urban Development Institute's Urban Densification Committee (of which I am a member) where it seems concerns are more about providing access for garbage and fire trucks, than about green design, place-making or timeless architecture.

Of the many barriers to innovation in Calgary, probably the biggest is our lack of a majestic vision.

One of the things I came away with after my visit to Dubai in 2007, was that there exists an incredible, comprehensive vision for every development.

Where we would build a hospital or maybe a hospital complex, Sheikh Mohammed bin Rashid Al Maktoum, prime minister and vice-president of the United Arab Emirates, and the ruler of Dubai, cultivated a vision to create a new Healthcare City in Dubai -- a city within a city.

The vision currently under construction includes a Mayo Clinic, Harvard Medical School, numerous private clinics, pharmaceutical labs and offices, condos, homes, shopping, spas, restaurants, entertainment and other amenities for students and employees, as well as accommodations and amenities for the patients and their families.

A second barrier to innovative development is that Calgary appears to be "risk adverse." This includes everyone from investors and developers to city bureaucrats and politicians.

Pension funds, the investors behind most of the new office buildings in Calgary's downtown, are focused not on creating great architecture and monuments to themselves like the power brokers in Dubai, but are very conservative, looking for the most cost-effective building to maximize their short- and long-term returns.

The corporations moving into the offices are also very conservative, more focused on maximizing the number of people per square foot than anything else.

It used to be 250 square feet was designated per employee; it is now 180 square feet.

I was told that office buildings in Dubai are about 70 per cent efficient from a gross to net leaseable area; in Calgary the benchmark is 88 per cent or higher.

If you create less efficient floor plates, you can create buildings that have more interesting shapes and angles, rather than the big box
architecture of Calgary.

New office buildings in Calgary's are not designed to create great architecture and monuments to those behind them.

Instead, the architecture is conservative, as are the corporations moving into the offices which are more focused on maximizing the number of people per square foot.

A prime example of Calgary's "risk adverse" view is the new court house complex.

If this were Dubai, or even Europe a 100 years ago, it would be a grand building with a grand entrance created as a monument to former premier Ralph Klein (a long standing premier of the province and mayor of the city).

Instead, this post-911 building is designed more for security than street esthetics, resulting in an edifice that looks more like an office building, than a major public building.

Lack of a sophisticated marketplace is a third barrier to innovation, according to condo developers, meaning most Calgarians are not very adventurous when it comes to what they are looking for in a place to live.

And most condo developers feel handcuffed by the Calgary market to continue to create the same product as that which has sold in the past. They have no evidence there is a market for smaller, more functional and funkier spaces. In Calgary, the homebuyers' mindset still is "bigger is better."

Consensus-based planning is a fourth factor in the lack of innovation here. Calgary's "community engagement" policy means every project has to go through an exhaustive community consultation process, which in turn fosters "NIMBYism."

Every time a developer wants and tries to do something different or add more density to a site, some community members object because of four issues -- more traffic, more noise, safety concerns and shading issues.

I don't understand why we allow a system whereby a handful of people can object to a project (often based on their own self-interests) and result in delaying a project for months to allow for more studies and more consultation.

We say we want more density, and more work/live/play communities, but when a developer proposes one they get nothing but delays, which costs them -- not the community and not the city -- significant dollars.

While I respect the need to have community and individual input, I also question if they are really willing and able to see the big picture and what is best for the city-at-large.

The current need to build consensus among all of the various departments at the city for each project also impacts innovation. I have seen projects delayed for months while one department debates with another how to interpret and apply policy to a particular project.

I know of one proposed mixed-use development next to an existing LRT station that has been waiting for two years to get a decision from the city if it can proceed, because the city needs to update its thinking on Transit-Oriented Development.

We know high density, mixed-use (office, residential and retail) development at LRT stations is a good idea. Shouldn't we know by now how to evaluate a project and determine if it right for the site?

"Paralysis by analysis" is yet another barrier to innovation. If a developer proposes something that is outside the box, it will often result in months, even up to a year of delays as the city asks for studies or time to study the ramification of the project.

The net result is developers build what can get approved quickly (for example, that which fits with current policy) as it is too costly and time consuming to propose something different.

Calgary's "boom/bust" economy is also not conducive to innovation.

During a boom, developers can't build it fast enough; this results in them building the same thing over and over again.

"Whatever will get approved the quickest" is the mantra of developers during a boom. On the other hand, during a "bust," very little development is happening and what development is happening tends to be very conservative as there is even less willingness to take risks. Necessity is the mother of innovation is another reason why Calgary developers don't innovate -- in other words, they don't have to.

Calgary has lots of land available to develop -- a 20-year supply or more, which means we can continue to build and grow the same way we have for the past 100 years. Even the City Centre still has lots of empty parking lots to develop (e.g. all along 9th and 10th Avenues S.W.).

Innovation often comes when a city runs out of land and has to rethink how to use it in new ways or when pollution or other environmental factors become critical.

Despite the barriers, we do have some innovative projects underway, which I will discuss next week.

Richard White is a Calgary-based writer who has written on art, architecture and urban culture for more than 20 years. He is also an Associate at Riddell Kurczaba Architecture and can be reached at richardw@riddell.ca.

IN SHORT

BARRIERS TO INNOVATION:

- Lack of vision.

- Risk-adverse mentality.

- Lack of sophisticated buyers.

- Consensus-building.

- Community consultation.

- Paralysis of analysis.

- Necessity is the mother of invention.

© The Calgary Herald 2008
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Old Posted Jul 22, 2008, 8:13 PM
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Energy prices fuelling downtown demand

Mario Toneguzzi
Calgary Herald


Tuesday, July 22, 2008


A shift in the demand side of the downtown office real estate market has taken place over the last six months, says a new report by CB Richard Ellis.

After four consecutive quarters of negative absorption -- the change in occupied square footage from one period to the next -- the downtown market is beginning to see some positive numbers with 31,564 square feet of absorption in the second quarter of 2008, according to the commercial real estate firm's latest market overview.

"Rising natural gas and oil prices, inherent since late 2007, are now significantly affecting downtown office demand," said the second quarter report. "Many companies are looking for additional space for expansion. Newly available capital is also allowing new start up companies to seek office space.

"In the sublease market, larger blocks of space are being absorbed by the larger oil and gas companies. The continued tight supply means tenants still have limited options, especially when requiring a large block of contiguous office space in the core."

There's no doubt the downtown office market is contingent on what happens in the oil and gas industry, said Greg Kwong, the real estate firm's regional managing director for Alberta.

"It's contingent on the oil and gas industry and how the real estate community reacts by adding new supply," said Kwong. "You can have strong growth in the oil and gas industry and equal growth in the office development industry and the vacancy rate stays the same. There's no pressure. It's just equilibrium.

"The last three years, the oil and gas industry obviously has gone through probably the biggest growth expansion that I've seen in 20 years and it really took the real estate community two or three years to catch up because it takes three or four years to build office buildings."

He said the demand going forward will continue to remain high as long as oil is above $90 a barrel.

There is clearly a correlation between downtown office space demand and the oil and gas industry, said Richard Pootmans, business development manager of real estate for Calgary Economic Development.

"The energy sector, and the related services to it, are the prime drivers of office space demand in the downtown core without question," he said, adding that the sector has by far the majority of office space in Calgary's central business district.

"We're also seeing growth in the financial services sector as well. And we're seeing a lot of interest as the capital budgets continue to increase for not only conventional, but also oilsands related development, and the staggering budgets for those projects. The financial services sector is also increasingly looking, from frankly around the world, (to locate) branches here and increasing the size of the offices they have here."

CBRE said the downtown office market currently has 5.6 million square feet of space under construction. Nine office developments are underway, four of which are 100 per cent pre-leased. The majority of those projects are expected to be completed in 2010 and 2011, adding two million square feet and 2.7 million square feet respectively to a downtown office market which currently has an inventory of 32.7 million square feet.

Four additional office developments have been proposed for downtown, but not yet confirmed, said the report.

CBRE said the downtown office market saw a marginal drop in overall vacancy from four per cent in the first quarter to 3.9 per cent in the second.

Overall, average asking rates continued to decrease again this quarter from $37.38 per square foot to $35.34 per square foot.

New construction coming online over the next three years will likely increase the vacancy rate, which will depress rental rates, said the report.

mtoneguzzi@theherald.canwest.com

© The Calgary Herald 2008
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Inner-city project postponed
Permit delay affects timetable plans for The Bridges

Chuck Chiang
Calgary Herald


Saturday, August 09, 2008


Construction on the second phase of The Bridges -- one of the largest redevelopment projects in Calgary's history -- will likely begin next spring, says a city official.

The second phase, originally scheduled to start sometime this year, is waiting for the three builders involved to secure the necessary permits, says Colleen Roberts, project manager at The Bridges.

The project is a city-owned development located in Bridgeland on the site of the demolished Calgary General Hospital, just northeast of downtown across the Bow River.

The City of Calgary will wait until construction starts on the second phase before releasing Phase 3 of the project, something that was originally scheduled for late this year.

"We want the Phase 2 builders to be successful," says Roberts. "The more successful the Phase 2 builders are, the more successful the phase three release will be."

Sandlewood Developments, one of the three builders slated to construct parts of Phase 2, says there is currently no timeline on when digging will begin at its site.

The completed Phase 1 of the project adds 425 residential units to the neighbourhood, along with street-level retail commercial properties.

The project is intended to create a pedestrian-friendly community in the inner city, which coincides with city planners increasingly promoting densification in Calgary.

Officials say the location of the site -- within walking distance of downtown and adjacent to an LRT station -- makes the project conducive to sustainable urban living.

The second phase, when completed, will add another 707 residential units to the neighbourhood in the form of apartment condos and townhomes.

In the meantime, city officials say they will be making a major announcement relating to a Phase 2 land parcel in upcoming weeks.

© The Calgary Herald 2008
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Builder refuses to use 'cattle call'

Richard White
Calgary Herald


Saturday, August 16, 2008


The following is part of an ongoing series on Calgary's condo developers, published each month.

A decade ago, I often heard Calgarians ask: "Why don't we have more contemporary glass condos like they have in Vancouver?"

Well, it didn't take long for Vancouver's condo developers to move into the Calgary market, including Bosa, Qualex-Landmark, Anthem and most recently, Grosvenor.

Chris Colbeck, now the vice-president of sales and marketing for Qualex-Landmark, has a unique perspective on the evolution of Calgary's downtown condo market.

He held a similar position with developer Nat Bosa in the late '90s, during which Bosa built several projects in downtown Calgary's west end -- Axxis, Marquis and River West.

I recently chatted with Colbeck, who now has 18 years of condo development experience in B.C., Washington and Calgary.

I asked him about how Calgary's condo market has changed over the past 10 years, as well as about Qualex-Landmark's unique approach to development.

"In the mid '80s to '90s, Calgarians generally only considered buying a condo if they couldn't afford a single-family home, or they were downsizing, but that isn't true anymore," says Colbeck.

Today, more Calgarians are choosing the inner-city condo lifestyle, which means more time to play and less time stuck in traffic, cutting the grass, painting the deck and other homeowner chores.

The early part of this decade was a perfect storm for City Centre condo developers -- aging baby boomers moving out of single-family homes and into condos; the migration of 100,000 new workers to Calgary (many of whom were young downtown urban professionals wanting to enjoy the inner-city lifestyle); and a lack of residential housing downtown.

"This resulted in a rapid increase in prices as the supply couldn't meet the demand. The condo boom lasted for a few years, but we are now returning to a normalization period where we will probably see a five- to six-per-cent annual appreciation in the longer term.

"This is a much more healthy and balanced environment."

Colbeck reminds purchasers that "history has shown us that homebuying has always been a long-term investment and not a quick flip. If one looks at the long-term fundamentals for Calgary, it is still very positive for buyers who do their homework.

"Those who buy in a good location and from a good developer/builder will do well investing in real estate here. Buyers need to get back to the basics -- make an educated and disciplined buying decision."

His comments are supported by the recent net migration numbers for Calgary announced by Canada Mortgage and Housing Corp. Net migration refers to the inflow of people minus the outflow.

After negative migration from June to December 2007, Calgary experienced positive migration from January to March 2008.

The net migration to Calgary between this April and the same month last year was 12,441, down from 17,673 between April 2006 and April 2007.

Indeed, Calgary continues to be an attractive place for young professionals from across Canada to relocate and kick-start their careers.

During the past few years, Qualex-Landmark has quietly built two new condos on the 1100 block of 12th Avenue -- Stella in 2006 and Nova in 2008. It is now preparing to start construction of Luna, the third and final phase of this ambitious project.

In addition, the company purchased the Alberta Boot site on 10th Avenue S.W. It is working on a plan that could result in a mixed-use hotel/residential project -- one that could include two landmark highrises of 41 storeys and 51 storeys.

The company also bought the block further west on 10th Avenue immediately to the north of the Co-op Midtown Market where the Luna Discovery Centre is now located.

Qualex-Landmark's commitment to Calgary is significant.

It is a 20-year-old condo development company that has been quite active in the Vancouver market.

Its Pomaria condo project won the Urban Development Institute's Award for the best residential highrise in Vancouver in 2007.

Pomaria is Latin for "apple garden" and refers to the two treed oases located on the 16th and 19th floors. This feature, along with many others, allowed the project to achieve silver LEED status.

LEED stands for Leadership in Environment and Energy Design, an international set of standards for sustainable buildings.

In chatting with Colbeck, one of the things that struck me most was the attention Qualex-Landmark gives to cultivating buyers for its condo units.

While he takes much pride in the company's commitment to delivering quality homes on time, it was his obvious passion for engaging and educating purchasers that struck me as unique.

Qualex-Landmark has a group of 4,500 prospective purchasers, keeping in constant touch with them about upcoming projects -- as well as updates on the progress of construction, approvals and the development of new projects.

The company doesn't do "cattle call" purchasing -- lining up prospective buyers like cattle and trying to get them to make a quick decision to buy before the next person gets it, which is what some call "fear of loss" sales.

With the new Luna condos, Qualex-Landmark will not be having a grand open house for its sales center.

Colbeck's sales team will instead meet with prospective purchasers individually to tour them through the show suites and answer their questions in a relaxed manner.

The sales centre is to open today after all loyal Qualex-Landmark purchasers, investors and registrants have had a chance to look at what is available and determine if they want to buy in.

For them, coming to the sales centre is the last step in purchasing a condo, not the first step.

The result of this approach has been few purchasers backing out after the 10-day recession period. This is a testimonial to the company's commitment to quality, delivery and the individual.

One of the contributions Qualex-Landmark has made to Calgary's condo industry is the introduction of Intertech Construction (ITC) -- an experienced condo construction company from Vancouver -- to build Stella, Qualex-Landmark's first Calgary condo project.

It ensured the quality of workmanship and on-time delivery Qualex-Landmark needed to meet expectations.

As a result, ITC opened a Calgary office and is now used by several other Calgary condo developers.

Colbeck is proud of Qualex-Landmark's "product and process." He believes its team of Rafii Architects from Vancouver, BKDI architects from Calgary, ITC construction and the company's sales team make up the Qualex-Landmark advantage.

For more information on the new Luna condo project, go to www.livatluna.com, call 403-244-2428, or drop by the Luna Discovery Centre at 1120 10th Ave. S.W.

Richard White is a Calgary-based writer who has written on art, architecture and urban culture for more than 20 years. He is also an associate at Riddell Kurczaba Architecture and can be reached at richardw@riddell.ca.

© The Calgary Herald 2008
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Old Posted Aug 19, 2008, 10:33 PM
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Is Calgary suffering a 'failure of heart'?
PETER MENZIES

From Friday's Globe and Mail

August 8, 2008 at 7:56 AM EDT

CALGARY — Calgary may rank only 66th on the recently released 2008 Mercer List of the world's 143 most expensive cities, but it has soared 26 spots in the past year and is closing in on Vancouver in the race to be Canada's second-priciest domicile behind Toronto.

This is not good news. While Vancouverites always seem comfortable paying for their own sense of being Eden and Torontonians assume only fools would be incapable of grasping the cost of class, the same cannot be said for Calgarians. Yes, summer is wonderful, but while winter is not terribly harsh, it is long (the leaves will be gone in a mere 60 days), the roads are clogged and we wedge nervously into commuter trains that are either too packed or sparse for physical and psychological comfort.

The streets may be paved with gold for some; for others, they are merely lining the pockets of civic and private parking authorities in this, Canada's most expensive city in which to drive. Office rent is the country's highest and while jobs are plentiful and wages high, real incomes are nowhere near as competitive as they were 10 years ago. Efforts by Christian charities such as the Mustard Seed and Inn From the Cold to establish shelter and housing for the homeless have been rebuffed as inappropriate for a downtown that prefers gentrification. In a city where labour is in great demand, none of these are helpful trends; Saskatchewan offers better real incomes.

Little wonder the city is cranky. Honking and angry fingers are more frequent, happy howdies fewer. Police not only battle road rage, they recently had to deal with "golf rage" after a man was allegedly beaten following an errant shot.

This is a city increasingly in need of, yes, a really good transportation system, but more than anything it needs calm; happy and inspirational spaces and places that ease and enliven the soul and allow for a step sideways off the treadmill that we all know will hit like a hurricane again after Labour Day. Its downtown core, to which city planners are urgently trying to direct new homeowners, contains an imbalance between commercial and cultural influences.

Calgary is at risk of what is described by Pier Giorgio Di Cicco, in his book Municipal Mind: Manifestos for the Creative City, as a "failure of heart" or becoming merely "a place of business, or indentured servitude." It's not likely that Calgary could lose its soul, although it is quite possible it could sell it by mistake. One would expect that if nothing else, its long-standing sense of chauvinism is bristling in response to the very idea that the self-styled "heart of the New West" would beat in anything other than a passionate and prideful fashion.

A city this well-resourced should be able to respond to even these nuanced challenges by releasing its creative minds to give liberty to, as Mr. Di Cicco calls it, "the desire of the citizen for elements one no longer dares to ask for - conviviality, joy, delight in wonder, the shared forum of imagining and play, of unreserved laughter and serenity ... all the playful and ecstatic registers that justify city life." Everywhere there is talk of cultural renovation and innovation, whether it is any of the many successful theatre companies creating or building new homes, completion of the Stampede grounds expansion, a new arena for the Calgary Flames, development of the East Village, a massively redesigned arts centre and district, new condo towers and even an imposing Opera Centre that would replace aging and oh-so-20th-century structures such as the Jubilee Auditorium as the home for things of great beauty; of things that can make people swoon.

All great stuff, but whether Calgary succeeds in using its commercial muscle for cultural flourishing will depend on how fully it can embrace the truth that gentrification is not the answer. It is the spirit of values such as empathy and mercy that fuels the construction of these and other dreams; that stained glass is better than tinted glass and preventing a city with depth of soul from transforming into just a city with lots of stuff depends on understanding that creativity is the path to civic grace.

That is a big ask, perhaps too much. We shall see. In the meantime, we might have to settle for a few more cars on the C-train.
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Plan for $1-billion tower goes to city for approval
Five-star hotel part of project in Eau Claire
Mario Toneguzzi, Calgary Herald
Published: Thursday, August 21, 2008

A proposal for a "state-of-the-art" 30-storey office tower with a commercial podium in the downtown Eau Claire district goes before the Calgary Planning Commission for approval today.

The office tower is the first phase of the $1-billion development plans by Cadillac Fairview Corp. Ltd. for the entire block, named Calgary City Centre, which would eventually include Calgary's first five-star luxury hotel and spa, private residential condominiums and retail space, the Herald has learned.

Cadillac Fairview has lined up a hotel for the site, but that isn't being announced at this time.


It has been rumoured for some time in Calgary's commercial real estate sector that it could be the Ritz-Carlton. Cadillac Fairview has a project under construction in Toronto called The Residences at the Ritz-Carlton, which is a 53-storey condominium-hotel scheduled for completion in 2010.

"Calgary City Centre is about city building," said Wayne Barwise, senior vice-president of office development for Cadillac Fairview. "It will significantly revitalize a key area in the downtown core. . . . The site is strategically located in the middle of three major office blocks, and across from the historic Eau Claire Market."

He said the project will be the focal point in the area and will stitch together three disconnected city blocks through the Plus 15. At street level, he said, the project will bring new life to the area with numerous restaurants, cafes and shops.

Barwise said the company believes in Calgary's long-term economic future, as evidenced by the fact it is investing about $1.3 billion in the community, which includes Calgary City Centre and a $275-million expansion of Chinook Centre.

In May 2007, Cadillac Fairview purchased the 50 per cent interest Calgary-based Aspen Properties had in the block, located between 2nd and 3rd Street S.W. and 2nd and 3rd Avenues. The two companies previously had joint ownership of the block, known as the City Centre project.

The office tower, which would be about 875,000 square feet of office space, is planned for the location where the French Maid now exists on the southeast part of the city block, said Greg Kwong, regional managing director, Alberta, for CB Richard Ellis Ltd., which will be handling the leasing for the new building.

Total density for the entire project will be in the range of 1.6 million square feet.

The project "indicates the optimism that these developers from out of town have for Calgary on a long-term basis," said Kwong.

"It's not a one- or two-year phenomena. We're going to go through over the next 10 years some ups and downs but long-term the curve is pointed up," he said.

The tower proposal is the "first portion of the development -- the eastern portion -- of the entire site," said Barwise.

"The western portion is the subject of a land-use re-designation which has been applied for at the city and which we are in the process of working our way through with the planning department."

It's anticipated that the approvals on the land-use re-designation will be completed in the fall, he said, adding the land-use re-designation incorporates the five-star hotel and condominium residences.

Assuming approval of the development permit and land-use re-designation, construction is expected to start on the project in the second quarter of 2009, said Barwise.

Completion on the site would be in 2013.

The project is planning one tower with 200 hotel rooms and about 400 condominium units.

"It's a stepped tower. It has a podium base that includes a five-star luxury hotel . . . retail and a glass atrium," he said. "And on top of that is a point tower condominium."

Barwise said a hotel is in place. Cadillac Fairview will be holding a press conference in about 30 days to announce and unveil the plans for the hotel and who it will be, he said.

The office tower podium will house retail space.

In a letter to the city's development and building approvals department, Maggie Schofield, executive director of the Calgary Downtown Association, wrote: "The CDA is extremely pleased with the entire proposed development and believe it will positively impact the area."

She also wrote that the "landmark entry proposed for the north side of the building is spectacular."

A letter to the city by Roger Brundrit, president of the Eau Claire Community Association, states: "The architectural design elements of the proposed office building, especially the retail level, are outstanding."

Plus-15 connections will connect the office tower with developments to the east and south. Provisions have also been made in the proposal for future Plus-15 connection to the west half of the site to accommodate future redevelopment of that portion.

mtoneguzzi@theherald.canwest.com
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Old Posted Aug 25, 2008, 3:26 AM
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Builder halts Beltline condominium project

Mario Toneguzzi
Calgary Herald

Friday, August 22, 2008

CALGARY - Construction of a high-profile multi-million dollar Beltline residential condominium project, which included two towers at 26 and 30 storeys, has ground to a halt due to elevated costs, the Herald has learned.

The news regarding the Gateway Midtown development at the corner of 10th Avenue and 4th Street S.W. comes at a time when the number of new condos under construction in Calgary is at a near record level while the number of condos for sale on the MLS market remains high as well.

A recording on an information line for the Gateway Midtown project says: "You have reached the Gateway Midtown purchaser information line. At this time, we regret to inform you that Resiance Corporation will not be proceeding with construction of Gateway Midtown as insurmountable construction costs have made this project financially unfeasible."

"If you have purchased a suite at Gateway Midtown and you are calling about your deposit, rest assured that your deposit will continue to be held in lawyer's trust or covered under the provisions of the Alberta New Home Warranty Program and therefore protected under the terms of these two provisions. We are unable at this time to answer further questions about your deposit as all contracts associated with the project, including your purchase agreement, have been assigned to the senior lender. You will be contacted by an administrator acting on behalf of this lender to advise you of the status of your contract to purchase. As any questions regarding your contract can only be answered by this administrator, we ask for your patience and understanding while this unavoidable process transpires."

In a statement to the Herald, Resiance Corporation said the Gateway Midtown project is "suspended, at least temporarily, pending the decision of the senior financial lender whether to resume construction." The decision was made because of "dramatic escalations in construction costs, unabated since the project launched in 2005."

There are more than 500 purchasers of units in the 650-unit project.
The company said this decision has also resulted in the downsizing of 41 Resiance salaried and hourly employees.
The number of condos currently under construction in Calgary is 10,643 - 102 units shy of the record established in May, and 44 per cent higher than a year ago, said Richard Corriveau, regional economist for the Prairies and Territories for Canada Mortgage and Housing Corporation.

"I have heard rumblings that this might occur," said Corriveau, of the general condo market in the city and projects not proceeding. In the condominium resale market, the Calgary Real Estate Board at the end of July was reporting the month-end inventory of condos for sale in Calgary at 2,888. There were 1,183 new listings added in the month, up 5.91 per cent from July 2007, and sales for the month showed an 11. 28 per cent decrease (535 units) compared with a year ago while the average days on the market to sell a property rose to 52 from 33.

Those numbers had an impact on MLS sales prices. The average sale price in July for a condo in the city was $296,338 which was 6.98 per cent less than a year ago ($318,582) while the median sale price dropped by 8.19 per cent to $273,500 from $297,900 in July 2007.

"What's occurred in 2008 is we've seen a sharp pullback in resale demand. We're seeing a weakening in rental demand and the single-detached new home market has also pulled back in their production quite strongly," said Corriveau. "Now the (new) condominium market stands out as anomaly. It's bucking the trend of what's occurring in every other housing market within the Calgary CMA.

"That poses some concern as you consider the indicators that have fuelled weaker activity elsewhere, it's surprising that the multi-family market hasn't responded."

Those indicators include weaker net migration here, employment growth softening, income growth moderating, rapid price escalation in all markets leading to weaker demand.

But Corriveau said one of the factors acting in the new condo market's favour is the time horizon to construct condo projects and eventhough we are currently faced with weaker demand, the vast majority of these projects aren't scheduled for completion for another year to three years or more.

mtoneguzzi@theherald.canwest.com

© Calgary Herald 2008
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  #117  
Old Posted Aug 25, 2008, 3:30 AM
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Layoffs strike Calgary's once-booming homebuilders
Mario Toneguzzi , Calgary Herald
Published: Friday, August 22, 2008
CALGARY - Plunging housing starts in Calgary this year compared with a year ago has led some Calgary homebuilders to lay off staff.

On Monday, Jayman MasterBuilt laid off 50 employees in Calgary and Edmonton - 30 in Calgary, said Jay Westman, president of the company. The layoffs were in the office and in the field.

"We've spent a lot of time over the last few months in rightsizing our various operations to what we believe is the long-term sustainable housing market for Calgary and Edmonton," he said.

"We spent months in deliberation and sort of held off as long as we could."
Westman said the company has close to 400 employees. It has come close to doubling its staff complement over the last three years. He said the layoff number is about 13 per cent.

"But you have to understand over the last 36 months we had a 100 per cent hiring and growth," said Westman. "We're not just reacting to the slower market of today but we just don't expect the pace to be continued that it's been at from 2005 to say 2007. What we're really doing is gearing for the long-term."

A recent report by Canada Mortgage and Housing Corporation, the third-quarter Housing Market Outlook, forecast housing starts in the Calgary CMA to drop from 13,505 units in 2007 to 12,200 this year and 8,400 in 2009.

In the single-detached market, from January to July housing starts have actually plunged by 41 per cent compared with the same period a year ago.

"Homebuilders are just like any other business. When the market conditions change, we have to re-evaluate our manpower, our processes, our structures and act accordingly," said Norm Mross, president of Canadian Home Builders' Association - Calgary Region.

"Downsizing or rightsizing is something that most builders are currently looking at and it's just a good business decision as in any other industry."

Al Morrison, president of Morrison Homes in Calgary, said the company went through some restructuring several months ago where 19 people were let go - two people moved to a different company it operates. Staff were both in the field and in the office.

"As builders we all came off of a couple of huge years trying to keep up and of course we had to staff up as best we could to keep up with it and now volumes are down so that's an unfortunate thing but we have to adjust our businesses to stay healthy," he said.

Morrison said he knows of a few other homebuilders that have gone through a similar adjustment.

"It just depends how big a rush, how big years you had, when things were going crazy compared to now. We as a company happened to have some great opportunities in front of us at that time and we went with them and our volumes were substantially higher than they are now," he added.

Westman said the past few years was a "frantic market" and today's housing market has slowed "but it's still good."
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  #118  
Old Posted Sep 3, 2008, 5:14 PM
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Home prices skid nearly 10 per cent
Average single-family home now $440,625 amid sales drop

Mario Toneguzzi
Calgary Herald


Wednesday, September 03, 2008


The average MLS sale price for a single-family home in Calgary fell by more than nine per cent in August compared with a year ago, while the average condo price dropped by just over 10 per cent, says the Calgary Real Estate Board.

Sales in both markets also declined -- by nearly 11 per cent for single-family homes and more than 17 per cent for condos.

Data released by the board Tuesday showed the average MLS sale price of a single-family home in the Calgary metro area in August was $440,625, down 9.32 per cent from August 2007 when it was $485,914. The average price of a condo in Calgary metro was $287,832, a drop of 10.27 per cent from August 2007 when it was $320,790.

Realtor Lana Wright, with Re/Max Professionals, said August is typically quiet for herself and husband, Steve, but this past month has been busy for her despite what the CREB numbers indicate.

"We're getting a lot more buyers coming in and, in our experience, they're not as pessimistic as other buyers have been," she said. "They're very well-educated. They know what's going on. I think that they're realizing that the market has stabilized and waiting any longer may not do them any justice. So most will take advantage of what's out there in the market."

Wright added typical buying patterns have been thrown out of whack.

"Historically, (the market) picks up in the fall but I would say the last two years we've not been able to count on anything historically because it's been so odd."

Wright said she's also seeing a little bit of a "surge" in her business because of mortgage changes coming this fall. The federal government announced changes taking effect Oct. 15 which include the requirement for buyers to put down at least five per cent for a down payment.

It is also implementing a reduction of government-backed mortgages from maximum amortization periods of 40 years to 35 years.

"People who are in that situation right now -- those are their options for qualifying -- are out there in the market right now looking," said Wright.

In August, according to the real estate board, single-family home sales were 1,170, a 10.96 per cent decrease from the 1,314 sales in August 2007. In July, it was 1,313 sales.

Condo sales in August were 495, a 17.22 per cent drop from August 2007 when they were 598. Condo sales in July were 535.

As for new listings, in the single-family market, there were 2,270 for August, down 19.99 per cent from a year ago (2,837). In July, there were 2,559 new listings.

Last month, the condo market saw 1,054 new listings, a drop of 11.13 per cent from a year ago (1,186) and down from July's 1,183.

Median sale prices also dropped in August. For single-family homes, it was $398,000, down 7.4 per cent from a year ago ($430,000) and down 2.6 per cent from July ($408,500). For condos, it was $268,500 -- off 10.8 per cent from $301,000 a year ago.

Real estate board president Ed Jensen, in a news release, said the median price for single-family homes is under $400,000 for the first time since January 2007, "which may indicate that properties are being reduced in price and that some sellers have waited too long."

Lai Sing Louie, senior market analyst in Calgary for the Canada Mortgage and Housing Corp., said declining sales in the Calgary market combined with still high listing levels (5,541 for single-family homes and 2,699 for condos at the end of August) are putting downward pressure on prices.

"Right now it's a matter of consumer confidence," he said. "Pricing uncertainty is impacting consumer confidence. People are taking a wait-and-see position. The actual levels of supply are starting to come down, but it's still going to take awhile."

In July, the average sale price for a single-family home was $456,380 while the median price was $408,500. For condos, the average price was $296,338 and the median price was $273,500.

The average price of a single-family home in Calgary peaked at $505,920 in July 2008 while the condo peak was $332,237 in May 2007.

Year-to-date until the end of August, single-family home sales are down 27.57 per cent and the average sale price ($466,677) is off by two per cent compared with the same period a year ago. Meanwhile, condo sales are off by 32 per cent and the average sale price ($307,640) is off by 2.6 per cent.

mtoneguzzi@theherald.canwest.com

- - -

Calgary Metro MLS Sales

(August 2008)

2008 2007 % Change

Single-family homes

New listings 2,270 2,837 - 19.99 %

Sales 1,170 1,314 - 10.96 %

Average days on market 52 39 33.33 %

Average sale price $440,625 $485,914 - 9.32 %

Median price $398,000 $430,000 - 7.44 %

Condominiums

New listings 1,054 1,186 - 11.13 %

Sales 495 598 - 17.22 %

Average days on market 58 35 65.71 %

Average sale price $287,832 $320,790 - 10.27 %

Median sale price $268,500 $301,000 - 10.80 %

Source: Calgary Real Estate Board

© The Calgary Herald 2008
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  #119  
Old Posted Sep 5, 2008, 4:34 PM
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Bridgeland developer bullish despite slowdown
11-storey project to rise near C-Train station
Mario Toneguzzi, Calgary Herald
Published: Friday, September 05, 2008

Despite recent warning signs about Calgary's residential condominium market, a developer is proceeding with plans to build an 11-storey project in Bridgeland.

"The Calgary economy is still very strong," said Alex Ferguson, development manager for Apex Cityhomes, of the Crossings at the Bridges project, which will include 142 units -- one and two bedrooms, terrace homes and penthouses.

"We've seen great response. This project itself we think is very different than the downtown condo highrise market."

Ferguson said registrations on the company's website indicate a strong interest in the midrise project, which will be built at 38 9th St. N.E., on the north side of Memorial Drive near the Bridgeland C-Train Station.

The preview centre for the project opens Saturday in Bridgeland at 824 1st Ave. N.E. Construction is expected to begin late this year with completion in 21 months to two years. Prices will range from the mid-$300,000s to mid-$600,000s.

Condo starts in the Calgary Census Metropolitan Area have more than doubled this year compared with last year, said Lai Sing Louie, senior market analyst in Calgary for the Canada Mortgage and Housing Corp.

For the year to July, there have been 5,383 condo units started as compared with 2,592 units last year. At the end of July, there were 10,643 units under construction, a rise of 44 per cent from the 7,387 units under construction last July, added Louie. The current number of condos under construction is just below the 10,746 record level reached in May.

"We are in buyer's market conditions. This has been going on basically for the whole year," he said.

Resiance Corp. recently announced that its Gateway Midtown condo project -- 26- and 30-storey towers at the corner of 10th Avenue and 4th Street S.W. -- was suspended due to "dramatic escalations in construction costs."

In the MLS resale market at the end of August there were 2,699 condominiums for sale in Calgary. So far this year, sales in the resale condo market have dropped by more than 32 per cent compared with a year ago, and the average MLS sale price has dropped by 2.58 per cent for the first eight months of this year, to $307,640.

"Relative to demand, there are a lot of listings and that is causing people to take longer to sell, and that means that people re-price and that overhang of supply is putting downward pressure on prices. That's the resale market," said Louie.

In the new condo market, he said, the timeline to build a highrise condo is a few years.

"It's a tough time to be putting more product on the marketplace in buyer's market conditions."

Crossings is the first of two inner-city, mid-rise residential buildings to be constructed by Apex. The Bridges is a City of Calgary master-planned project designed to revitalize Bridgeland on the site of the old General Hospital. There are a total of 17 development sites with a maximum of 1,575 residential units and a population projected to be between 2,000 and 2,500.

"Crossings is really something special," said Ferguson.

"It's an easy walk to the hustle and bustle of downtown Calgary but across the river in the charming and historical community of Bridgeland."

mtoneguzzi@theherald.canwest.com
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  #120  
Old Posted Sep 8, 2008, 2:34 PM
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Growing pains
Builders taking stock as construction boom meets buyer decline
Kathy McCormick and Marty Hope, Calgary Herald
Published: Saturday, September 06, 2008

A look across the Calgary skyline shows a steadily growing number of glass-and-steel highrises climbing out of the ground.

Huge numbers of multi-family units are completed, under construction or approved. The level of construction starts has already set an annual record -- and there are still nearly four months to go.

But at ground level and below, there are issues within this volatile housing sector. Most of the construction starts are highrises that were sold during the boom -- highrises in which many speculators bought units in a bid to make some fast money, turning them over as soon as they were built.

Many of those units are now part of the resale MLS inventory, where record levels of homes are for sale, glutting the market.

Prices have dropped, yet fewer people are buying.

Concern has recently been voiced about the number of highrise units approved and/or under construction.

In the wake of that growing concern, fuelled in part by rising costs, Resiance Corp. has announced it has halted work on its twin-tower Gateway Midtown project on the edge of the Beltline area.

Through a spokesperson, Resiance says the 26- and 30-storey condo towers at the corner of 10th Avenue and 4th Street S.W. have been suspended due to "dramatic escalations in construction costs."

Officials with other development companies say the Resiance situation is a concern.

"An unfortunate part of the natural cycle," says Paul Battistella of Battistella Developments, which is active in condo development in the Beltline. "Midtown was a project that was very large and therefore subject to the significant risk of time -- in which costs continued to rise while sales and revenues weren't keeping up."

The length of time required on a project the size of Midtown leaves it open to many potential problems.

A recording on an information line for the Gateway Midtown project said "insurmountable construction costs have made this project financially unfeasible."

This is the second time Resiance has had cost concerns with the 650-unit complex.

In June 2006, Resiance executive vice-president Barry Chow said severe construction cost increases forced the company to increase prices of units already sold by 30 per cent.

The increases were necessary to "allow the project to move forward on a proper financial footing," Chow said at the time.

Plans for Gateway Midtown had been announced a year earlier, and by the time the company went ahead with the price increases, 490 units had been sold.

Chow said that costs had become "very unpredictable," adding that on average costs had gone up 30 per cent year-over-year.

"It's not good news for the industry, but it is part of an overall cleansing process that happens in any industry when the customer is no longer willing to pay ever-rising costs," says Brad Milne, vice-president and general counsel for Statesman Corp.

Construction costs have been rising for several years now, primarily because of increasing commodity prices, he says.

That was fine while condo prices were rising and consumer demand was strong. But in the last year or so, that has not been the case.

"Builders have been absorbing these rising construction costs, not being able to pass them on to the consumer -- and there comes a point when the builder can no longer build for the price the consumer is willing to pay," says Milne.

But Resiance may not be alone in dealing with costing issues, suggests another developer.

"I know of other projects that have been put on hold not only because of the current sluggish market but because costs have risen too high," says Brian McIntyre, vice-president with Assured Developments. "The market will correct itself as it always does, but it could take some time."

Even so, many more condos are planned for the inner city -- many sold when times were a lot headier than they are today.

"Condo starts will reach a record high in 2008," says Lai Sing Louie, senior market analyst for Canada Mortgage and Housing Corp. in Calgary.

He's calling for 7,000 construction starts of multi-family housing by the end of the year -- up more than 22 per cent compared to last year.

"The one surprise this year is the elevated level of multi-family construction, given the buyers' market conditions," says Louie.

Even so, the high number of units will work their way through the system, says Naum Shteinbah, general manager of Streetside Development Corp. in Calgary.

"They always do," he says.

" But for those who have started expensive projects downtown where there are many condos either under construction or planned, they will need strength to pull them through and finish construction.

"Prices are approaching the level where it not feasible to build if it goes down more. Builders who are not financially strong will have a tough decision on whether to sell inventory at a discount and lose money, or whether to hold off on starting projects to generate a lower supply of housing in two to three years."

There are inventory issues involving speculators who are dumping product onto the market, as well as with new construction, says Don R. Campbell, author of 97 Tips for Canadian Real Estate Investors, and president of the Real Estate Investment Network.

Before the market settles down, that excess inventory will have to be dealt with, he says. "It will take a few years to be absorbed, but the good news is that they will be absorbed."

Overall, Campbell is positive about the outlook for Calgary.

"It is slated to be the best in Canada in 2009 and 2010, and while the migration is not at the same level as it was in the "Tiger Woods years" of 2005, 2006, and 2007, it's still one of the strongest in the country -- and housing activity will be up," he says.

In Edmonton, the situation is not as severe -- at least this year, says Avi Amir, president of Homes by Avi, which is building in Edmonton as well as Calgary.

"They didn't build as many high-rises, so their inventory on the multi-family side isn't as high," he says.

Jay Westman, president and CEO of Jayman MasterBuilt, a large-volume builder in both cities, agrees. "The multi-family market in Edmonton seems to be more in balance than in Calgary presently."

However, Edmonton's condo market "is still playing out, so that could change," says Richard Goatcher, senior market analyst for CMHC in Edmonton.

There are a number of new projects out of the ground in Edmonton, with builders saying they have pre-sales, but who are they selling to?

Investors are now walking, prices are falling and deposits are disappearing.

"The new condo inventory is starting to heat up, and that's a strong signal to everyone that it's time to back off on new construction," says Goatcher.

For the first seven months of this year, multi-family housing construction in and around Edmonton has reached nearly 3,000 units -- down 22 per cent from 3,834 starts a year ago, says CMHC .

It could take "a little over a year" until inventory normalizes, says Reza Nasseri, CEO of Landmark Group of Builders.

"Some of the apartment projects in Edmonton that have not been started will most likely be put on ice until the market improves," says Nasseri.

"However, they will be built later. It takes an awful amount of work and time to get a condo project to development stage."

With that, it also takes the multi-family -- particularly highrise -- builder longer to be able to react to the market once it changes.

It takes three to four years to bring a multi-family project from acquisition to construction -- and it takes a highrise building some two years or more to be completed.

The market could change dramatically by then.

"I predict there will be a shortage of multi-family product in three years," says Shteinbah.


© The Calgary Herald 2008
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