Winnipeg Construction VIII

[esquire]

Whoops, my last post should have read Garry between Portage and Graham...

[bomberjet]

What is it?

[JamieDavid Exchange]

Originally Posted by 1ajs

this place sure come a long ways

I thought this was the building where Fortress was constructing the display suites for Skycity. So, where on Gary are they constructing it?

[esquire]

Originally Posted by JamieDavid Exchange

I thought this was the building where Fortress was constructing the display suites for Skycity. So, where on Gary are they constructing it?

Pretty sure it's supposed to be in the former ANAF hall across the street (most recently Fame and a bunch of other various clubs).

@ bomberjet - it's The Pint, a kind of generic looking pub and grub chain. Looks a bit like Original Joe's.

[cheswick]

Originally Posted by esquire

Pretty sure it's supposed to be in the former ANAF hall across the street (most recently Fame and a bunch of other various clubs).

@ bomberjet - it's The Pint, a kind of generic looking pub and grub chain. Looks a bit like Original Joe's.

Well the building across the street has two sections. Fame is still operating out of one of them. The southern most one I believe is what they are proposing. AFAIK there is still a for lease sign up on the building.

[esquire]

The housing project backed by West Broadway Community Organization for 198 Sherbrook (vacant lot just south of Broadway) that has been in the works since forever appears to be moving ahead ever so slightly... rezoning and variance applications are winding their way through City Council.

The most recent rendering I could find. I don't think it looks like this anymore, but it provides a general idea as to scale:



Should be another great addition to the West Broadway area.

[Authentic_City]

Originally Posted by esquire

The housing project backed by West Broadway Community Organization for 198 Sherbrook (vacant lot just south of Broadway) that has been in the works since forever appears to be moving ahead ever so slightly... rezoning and variance applications are winding their way through City Council.

The most recent rendering I could find. I don't think it looks like this anymore, but it provides a general idea as to scale:

[IMG][/IMG]

Should be another great addition to the West Broadway area.

Is this the lot that's currently a community garden -- just south of the laundromat? It seems like this site has been up for discussion for quite a long time. Seems ripe for redevelopment. If done right, this could really continue the positive transformation of the area.

[esquire]

Originally Posted by Authentic_City

Is this the lot that's currently a community garden -- just south of the laundromat? It seems like this site has been up for discussion for quite a long time. Seems ripe for redevelopment. If done right, this could really continue the positive transformation of the area.

Yeah, that's the site. This has been in the works for a long time, possibly 10 years or more... they're moving at a non-profit's pace. Their timing is actually pretty good given that the area is more desirable now than it has been in decades with a relatively high amount of new development either concluded or planned.

[Authentic_City]

Originally Posted by esquire

Yeah, that's the site. This has been in the works for a long time, possibly 10 years or more... they're moving at a non-profit's pace. Their timing is actually pretty good given that the area is more desirable now than it has been in decades with a relatively high amount of new development either concluded or planned.

Yes, I'm sure this was being talked about 10 years ago at least. At that time, there was concern in the community that the garden space was going to be lost. As a result, whatever ends up being built is supposed to contain some type of community accessible garden component.

It's true that the site has only become more desirable over the past decade, so perhaps going slow was the right move, even if it wasn't by design.

[drew]

Originally Posted by esquire

Yeah, that's the site. This has been in the works for a long time, possibly 10 years or more... they're moving at a non-profit's pace. Their timing is actually pretty good given that the area is more desirable now than it has been in decades with a relatively high amount of new development either concluded or planned.

That's a pretty much it.

The proposed development passed through the re-zoning at the city last week.

Plans are moving ahead for pricing early 2015, and then it will move from there.

Looks nice. Mixed use building. Commercial main floor, with three floors of residential above.

[camzmac]

Originally Posted by Simplicity

They're all small units which isn't that surprising given they used to be hotel rooms. But in all seriousness, I'm not sure who makes up the rental market for 430 sq ft studios that are all between $880-$930. The 1BRs aren't too far out of line, but again, lots of them are below 600 square feet which is a small 1BR and all of them are well north of $1K/mth. I could see vacancy in that building being very close to 10% on a consistent basis given the number of studio units. And the moment Glasshouse becomes available for possession, I wouldn't doubt if 75% of those units come available for rent too. It's going to be a battle to generate reasonable rents consistently.

I'm skeptical there exists the demand for this many downtown units at these rents.

The rates you quote for the studio units at least seem competitive with Holidays Towers!

STUDIO 550 Sq.Ft. $1405.00
1 BEDROOM 670 Sq.Ft. $1515.00

Source: http://www.rentcanada.ca/wre/har170f.html

[esquire]

^ I think those rates are for fully furnished suites. Otherwise Holiday Towers would be vacant at those prices.

[trueviking]

Place Louis Riel's rental costs do seem optimistic. The suites look good in real life. It is surprising how small the units are considering it was built as an apartment building originally. Those were small units for the 70's.

[Simplicity]

Originally Posted by camzmac

The rates you quote for the studio units at least seem competitive with Holidays Towers!

Source: http://www.rentcanada.ca/wre/har170f.html

I can't speak for Westcorp's offering, but the one's you're linking to are furnished rentals, so that would explain the cost difference.

I was really only intending for my original post to show what was available and that it's probably a difficult sell. Just this morning the CMHC rental report came down for October '13 - October '14. Studios are averaging rents of $583/mth but have an availability rate of 4.9% - the highest of all unit types. Also nearly 2% higher than what is considered healthy vacancy.

Hey, No tears shed, I'm just pointing it out. There's a lot of studio units in that building for a huge premium above the average...

[trueviking]

^ is that downtown or city-wide?

[Simplicity]

Originally Posted by trueviking

^ is that downtown or city-wide?

That was city wide. If we drill down into the Centennial area which covers all the way to the Assiniboine to the south, the news only gets worse.

Vacancy is at 5.8%, while availability - the true measure of vacancy - is at a staggering 6.8%. And that's on average rents of $572 which is less than the city average. It's also worth noting that vacancy and availability are nearly double in buildings constructed after 2005 for the obvious reason that rents are quite a bit higher than average. This, of course, ignores what nobody around here wants to hear, but the lowest vacancies and highest rents are still in the suburban market. Those figures associated with post-2005 construction are being dragged down (or up depending on how you look at it) by high rents in relatively-newly constructed units in the suburbs that experience very little vacancy. Suburban vacancy is 2.3% and availability at 3.1%, significantly lower than downtown.

[Bobby604]

Hi Guys,

New to the forums. Thanks for having me.

I must admit I joined for my own self interest. My parents have a few large pieces of land in the N part of the city. I've been keeping an eye on development in the area for a few years. Been to the information session for Precinct F and for E.

My parents land is all on Balgona road (Precinct D). My dad purchased the land 26 years a go and has built a house on one plot and left 2 plots empty. 17 acres in all.

Precinct E was 'endorsed' by the gems down at city hall a few weeks ago. http://www.winnipegfreepress.com/local/City-endorses-plan-for-Precinct-E-283862071.html

My question is; when it does come time to develop Precinct D may it be years from now or decades, what steps do we as homeowners and landowners take to create the most profit.

I have no background or knowledge on development. Thats why I have been lurking these forums for over a year. Reading, but not speaking.

Will it make the most sense to sell to a developer as one piece? Or should we subdivide it ourselves? Should I spend the next few years going to post secondary for construction management and prepare myself to tackle the job or is it easier to just sell it outright?

Any help would be much appreciated.

Thanks you.

[bomberjet]

Welcome to the forum Bobby!

IMO it would be easiest and likely best to sell outright to a developer. Negotiating skills for maximum profit will be key at this point. So a good background on property values for this type of thing will be important.

I think it'll be more difficult to subdivide yourself, while trying to fit in with all the surrounding development. This could be more profitable for you in the end, but I really don't know. Others on here can likely provide a better outlook on things.

Seems to me though, when there are holdouts in these large scale developments such as Waverley West, the existing properties get shunned by the overall development. As in they basically get built around and not incorporated into the larger developments. Which then leave these properties less desirable, potentially, then the surrounding properties. There are people who live on Calboro Road who will now have Bison drive as their backyard for example. Or the people on Lee Blvd. Not sure if they will be swallowed up by WW, or if they'll be surrounded by the new development.

But I think you need to figure out what it will cost you and what your returns would be for a number of different scenarios. This may require you to hire someone with more experience.

[Simplicity]

Originally Posted by Bobby604

Hi Guys,

New to the forums. Thanks for having me.

I must admit I joined for my own self interest. My parents have a few large pieces of land in the N part of the city. I've been keeping an eye on development in the area for a few years. Been to the information session for Precinct F and for E.

My parents land is all on Balgona road (Precinct D). My dad purchased the land 26 years a go and has built a house on one plot and left 2 plots empty. 17 acres in all.

Precinct E was 'endorsed' by the gems down at city hall a few weeks ago. http://www.winnipegfreepress.com/local/City-endorses-plan-for-Precinct-E-283862071.html

My question is; when it does come time to develop Precinct D may it be years from now or decades, what steps do we as homeowners and landowners take to create the most profit.

I have no background or knowledge on development. Thats why I have been lurking these forums for over a year. Reading, but not speaking.

Will it make the most sense to sell to a developer as one piece? Or should we subdivide it ourselves? Should I spend the next few years going to post secondary for construction management and prepare myself to tackle the job or is it easier to just sell it outright?

Any help would be much appreciated.

Thanks you.

Welcome aboard, good sir.

Firstly, any development within a precinct noted by the city (in your case 'D') requires a 'Precinct Plan'. We used to call these secondary plans; I'm not sure why that's changed. ANYway, somebody will need to foot the bill for that original plan. For instance, Genstar picked up the tab for Precinct 'E' because they wanted to get the ball rolling. Anybody who wants to develop from here on out will have to pay back those fees as part of their development agreement.

That's the first step. There are many, many after that, but too much information at once will make this seem insurmountable.

[Bobby604]

Thanks for the replies BomberJet and Simplicity.

I suppose waiting/patience is the most useful tool right now. From what I know a Costco is supposed to open at the corner or Murray and McPhillips which is just a few minute jog from my parents house. Just as excited about having some stores, businesses in the area.

The N hasn't seen nearly the growth the south end of the city has and it's somewhat disappointing. Maples has seen a LARGE influx of Indian and Filipino immigrants in the last 5 years and many of them are looking for entry level houses. Established families are looking to 'upgrade' but are finding it hard to find housing. You'd be surprised how many new families/immigrants are renting basements suites in the Maples while they work and establish credit to purchase homes. I think the N is an untapped goldmine. Especially Precinct E.

Precinct E is a little different from Waterfront Green. Primarily because of the walking distance to the Sikh temple on Mollard Rd. I have no doubt that that Precinct E will sell out quickly.

Funny, I used to spend all my childhood ripping dirtbike's around this area and in 10 years it may be filled with houses.

Edit: It also might help that a family friend is selling 96 acres of property just N of Storie Rd, across from the hydro station. Wonder if a developer will end up buying that as well.