The Slater | 66.6 m | 22 fl | Completed

[Neednothing]

Originally Posted by canabiz

We were looking for an investment property and the numbers did not work out.

This is not to say it does not work for others.

For it to be a cash flow positive investment up front one would need to be nearly 100% capital invested.

The days of condos being offered cheaply pre construction and fetching a handsome post construction gain are gone. Now that Ottawa has entered a moderate risk position due to condo vacancies its not a fantastic time to be an investor. That being said we're just in a holding pattern and things will shake out.

[canabiz]

Originally Posted by Neednothing

For it to be a cash flow positive investment up front one would need to be nearly 100% capital invested.

The days of condos being offered cheaply pre construction and fetching a handsome post construction gain are gone. Now that Ottawa has entered a moderate risk position due to condo vacancies its not a fantastic time to be an investor. That being said we're just in a holding pattern and things will shake out.

I agree and that is precisely why we backed out.

With that said, some folks put less emphasis on cash flow and more on appreciation. We don't necessarily think that is the correct approach (it is analogous to —) but if people want to go down that path and can make it work, more power to them.

It will be interesting to see the ratio of owner/investor for this building, after all is said and done.

[YOWetal]

Originally Posted by Neednothing

For it to be a cash flow positive investment up front one would need to be nearly 100% capital invested.

The days of condos being offered cheaply pre construction and fetching a handsome post construction gain are gone. Now that Ottawa has entered a moderate risk position due to condo vacancies its not a fantastic time to be an investor. That being said we're just in a holding pattern and things will shake out.

Agree. I think pre-sales have been over-priced for 4-5 years now. There are some deals to be had in the resale market but a lot of sellers still have unrealistic price expectations especially if they bought on spec a couple of years back assuming a growth in prices that hasn't really materialized.

Personally, I think this project will grow in value based on location as there aren't really any other competitors on the horizon. But if you can't generate cash flow at 2.5% mortgages it is not a good sign.

[waterloowarrior]

Liquor license application is in.. submission deadline is April 3rd... so perhaps the bar won't be ready at first

[Neednothing]

24 units now showing on MLS up from the 11 in December. Would this mean that people are backing out, or that not all the inventory was listed?

[canabiz]

Originally Posted by Neednothing

24 units now showing on MLS up from the 11 in December. Would this mean that people are backing out, or that not all the inventory was listed?

I think it is the latter. I will have to read the T&C again but I believe backing out at this juncture would incur significant penalty.

It has been a while since I checked MLS listings for the Slater units but I recall Marnie Bennett Realty Shop has been selling them from the get-go.

Out of curiosity, I checked Kijiji and a number of units in this building are being advertised for rent already. Studio units are commanding around $1,300 while the asking price for 1-bedroom units are typically $1,500.

There are a fair bit of listings so I suspect the ratio of investor in this building is on the higher side.

[YOWetal]

—

[OTSkyline]

It looks like the hotel portion is already open?

A quick search on their website and third party sites like Expedia show rooms available this week at $119 + tax...

I didn't know the interiors had progressed so much. Wonder when occupancy will start for the condos?

[cr872190]

Originally Posted by OTSkyline

It looks like the hotel portion is already open?

A quick search on their website and third party sites like Expedia show rooms available this week at $119 + tax...

I didn't know the interiors had progressed so much. Wonder when occupancy will start for the condos?

I didn't realize it was just a three star hotel going in there. Rather low end looking rooms. But I guess Alt is Le Germaine's 'budget' brand. Its kind of a shame this location would be great for a business/luxury hotel.

[gjhall]

Originally Posted by cr872190

I didn't realize it was just a three star hotel going in there. Rather low end looking rooms. But I guess Alt is Le Germaine's 'budget' brand. Its kind of a shame this location would be great for a business/luxury hotel.

Many mid-priced hotels downtown have closed lately (Holiday Inn, Quality, National...) probably good market for it.

[canabiz]

It would be funny (and entirely possible) that some residents/investors in this building will rent their condos out on AirBnB and prospective guests will take up that offer, rather than staying in the hotel

[kwoldtimer]

Originally Posted by canabiz

It would be funny (and entirely possible) that some residents/investors in this building will rent their condos out on AirBnB and prospective guests will take up that offer, rather than staying in the hotel

Most condos prohibit owners/occupants from renting out on Airbnb, etc, do they not?

[canabiz]

Originally Posted by kwoldtimer

Most condos prohibit owners/occupants from renting out on Airbnb, etc, do they not?

I suspect you maybe right but one would need to read the purchase agreement to confirm. Perhaps a Slater buyer can pipe in?

The problem I see is enforcement. The very nature of AirBnB is short-term rentals. We recently booked a condo (fairly new building) in North York in the GTA advertised on AirBnB for the weekend. It was $30/night less than a nearby hotel (I have been a Priceline/Hotwire guy for the longest time) and has more amenities.

This was my first AirBnB experience and it was great. The condo owner responded promptly to my inquiries and was very welcoming. His condo was clean and it was close to where we wanted to be so overall it was a great experience. The (reasonable) price was certainly gravy.

I never asked the condo owner whether it is legal for him to rent his unit out on AirBnB. Even if his condo board prohibits residents from renting out their units on AirBnB, I don't see how they can enforce the rules effectively. The condo owners can just say the guests are visitors over the weekend, you know what I mean...I see this as an *honour* system, more than anything else.

[waterloowarrior]

^ If there is a question whether a unit is being rented out, they can always look up the listing... usually it's not difficult to figure out the building (there will be pictures of the building, view, layout etc) and the owner has their first name and picture right on the listing. If they need more information to prove it, they could have someone make a booking and get the unit number.

[canabiz]

Originally Posted by waterloowarrior

^ If there is a question whether a unit is being rented out, they can always look up the listing... usually it's not difficult to figure out the building (there will be pictures of the building, view, layout etc) and the owner has their first name and picture right on the listing. If they need more information to prove it, they could have someone make a booking and get the unit number.

I agree and putting the legalities of renting condo units on AirBnB aside, the question is is it a low-hanging fruit that the condo board should target or should they be spending their time and resources on other priorities?

[Neednothing]

Originally Posted by canabiz

I agree and putting the legalities of renting condo units on AirBnB aside, the question is is it a low-hanging fruit that the condo board should target or should they be spending their time and resources on other priorities?

I would hope that the condo board would be more focused on "bigger fish". The AirBnB conversation will sort itself out. I haven't seen anything in the AofP that limits AirBnB type renting, though.

Occupancy is starting soon and I thought I saw furniture already in one of the lower level units facing the Telus building.

[rocketphish]

Alt Hotel opens to high demand

Tom Pechloff, OBJ
Published on May 03, 2016

The Alt Hotel’s Ottawa launch has been the most successful in the chain’s history, co-president Christiane Germain said at the Slater Street hotel’s official opening Tuesday.

“We’re doing very well,” she said, declining to release the hotel’s occupancy rate in its first three weeks of operations.

Ms. Germain said Ottawa was one of the first markets Group Germain Hotels targeted but had to wait for the right location at the right price.

“We wished we could have been here before,” she said. “We’re very disciplined about our locations.”

Group Germain Hotels currently operates 13 hotels under the Alt and Le Germain brands. Ms. Germain said the company’s goal is to open 20 hotels by 2020.

Ms. Germain said entering the market before Ottawa’s 2017 celebrations is excellent timing, adding she wished the company’s Le Germain hotel, which will be part of the Ottawa Art Gallery and Arts Court renovation, could be ready that soon as well. It is set to open in late 2017.

Ms. Germain said as important as Canada’s 150th birthday year is to Ottawa, it wasn’t a major factor in her company’s decision to establish a presence in the capital.

“You can’t do an investment the nature of this for just one year, so 2017 is a very important year, but we think the Ottawa market is going to be excellent for years to come,” she said, pointing to new developments such as LeBreton Flats that are sure to draw tourists to the downtown core.

“It’s all part of this very great activity that’s taking place in Ottawa,” she said.

Group Germain Hotels invested $30 million in the hotel, which Ms. Germain said has brought 40 new jobs and almost 150 new beds to the city’s hotel industry, not to mention 4,000 square feet of meeting space.

Sales manager Ash Wilby said demand for the meeting space has been high, with almost 5,000 bookings so far.

He said the rooms represent a “rethinking” of what a meeting space should be, with all-natural light and amenities such as drop-down screens, projectors, whiteboards, built-in closets, countertops and sound systems.

“They are fun rooms to be in,” Mr. Wilby said. “You go into some meeting rooms and think, ‘Oh my gosh, I have to spend the next eight hours of my life in this room?’ These are fun rooms.”

http://www.obj.ca/Local/Tourism/2016-05-03/article-4517371/Alt-Hotel-opens-to-high-demand/1

[citydwlr]

A couple more news stories about the opening:
- Meetings + Incentives Travel
- Canada Newswire
- Le Droit



There are a number of photos (including the one above) on the Hotel Germain Flickr page:
https://www.flickr.com/photos/hotelgermain/sets/72157631807661092/

[Sean1337]

Originally Posted by Neednothing

I would hope that the condo board would be more focused on "bigger fish". The AirBnB conversation will sort itself out. I haven't seen anything in the AofP that limits AirBnB type renting, though.

Occupancy is starting soon and I thought I saw furniture already in one of the lower level units facing the Telus building.

I'm on a condo board and Airbnb is certainly a priority issue.

No one wants a bunch of randoms coming in and out of your condo building. You have a brand new building that you want to keep prestine (you don't want your investment going down the drain and building become a slum), and your residents want to feel safe.

One condo I'm aware of discovered that — rented a condo for 2 weeks. They were seen bringing men up and down through the lobby.

Airbnb is also used for illegal stuff like drugs.

Another condo discovered they had an Airbnb problem because security/concierge staff reported that Airbnb owners were using security to distribute keys to renters which is not their job.

"The Merit" condo has a strict policy on short term rentals in their condo building.

In general most condos don't allow it for all the reasons stated above. Same goes for renting out parking spots.

[canabiz]

Sean, you brought up some excellent points regarding short-term rentals pitfalls. AirBnB, when used properly, is a wonderful tool for travelers and hosts but I understand there are other elements that could be a cause for concern.

I certainly hope this condo board has stipulations and regulations in place to deal with that. There could be a spike for AirBnB requests next year being the 150th birthday of the country and we are expected to have a lot of tourists coming into town...