Saskatoon | Highpoint - Condo | 62M | 17F | Proposed

[Crisis]

After reading the letter above, I feel that Highpoint is not likely to proceed - at least not in the foreseeable future.

This opinion is based on some of the terminology in the letter, such as "our decision to put Highpoint on ice..." (really odd phrase to use in professional correspondence) and "official notice of the cancellation...". Combined with Urban Capital actually returning the deposits, as opposed to holding them with the promise that the project will still proceed, it leads me to think that this is a dead project.

That being said, I commend Urban Capital for the manner in which they appear to be conducting business. Returning the deposits and saying that they are going to start over is pretty admirable in my books.

[alt_center]

I was pretty negative too when I first heard the news. This may be overly pedantic, but "to put on ice" means to preserve. Also pedantic... they said they sold "close to 40" during the Sept. launch... maybe total sales are a bit higher

Also, UC seem like straight shooters. If they change the building enough I think they are morally obligated to refund deposits. For example, I speculated in my previous post that maybe some parking in the podium might reduce the building cost. To me that would be enough of a change that it's not what people signed up for. Or they might lop off a few floors. Or change the floorplans, or... who knows.

Their note says they will "proceed", not "proceed when"... At this point I would be prepared to give them the benefit of the doubt and believe them... although so much depends on how this pandemic plays out.

[YXE]

I must admit that I was always skeptical about the viability of this project. Urban Capital placing the blame on an abundance of office and retail space is a falsehood, in my opinion. We all know that if sales had been stronger that this project would have proceeded. By the time this project would have been completed, COVID-19 would be in the rear-view mirror. Not to mention that this retail and office space would have been on one of the most prominent streets in the city.

I think it just comes down to the fact that thing city, unfortunately, doesn't have high demand to pay that kind of money for units that size regardless of how upscale they are. Citizens in Saskatoon are very accustomed to big houses that can be purchased for the same price as a 900sqft condo.

[Brutopian]

Saskatoon’s Broadway Bridge condo development put on ice

By Anna McMillan Global News
Posted July 20, 2020 7:12 pm
Updated July 21, 2020 7:35 am

A Saskatoon condo development set to take up a prime piece of real estate on the east end of the Broadway Bridge has been put on hold.

[........]

Read more:
https://globalnews.ca/news/7199217/h...pment-on-hold/

[canuck10]

Originally Posted by Crisis

After reading the letter above, I feel that Highpoint is not likely to proceed - at least not in the foreseeable future.

This opinion is based on some of the terminology in the letter, such as "our decision to put Highpoint on ice..." (really odd phrase to use in professional correspondence) and "official notice of the cancellation...". Combined with Urban Capital actually returning the deposits, as opposed to holding them with the promise that the project will still proceed, it leads me to think that this is a dead project.

That being said, I commend Urban Capital for the manner in which they appear to be conducting business. Returning the deposits and saying that they are going to start over is pretty admirable in my books.

The project may be dead, I don't know. But the logic you use to reach that conclusion really doesn't make sense imho. Under the pre-sale agreements signed buy the potential buyers there are time frames that the developer must meet. If they choose to delay the project, then they won't meet those time frames and the agreements must be cancelled and the deposits must be returned. They had no choice and acted in accordance with the terms of the agreement.

[prairieguy]

Ha....tell that to the Capitol Pointe folks in Regina...that was one huge mess!!

[alt_center]

Recall that Urban Capital announced a project in Edmonton, MacKenzie Tower, at the same time as Highpoint.

I decided to check the status of that project and it seems to have died, even before covid hit. In fact the website is "expired". I am assuming the demand was just not there and that is disappointing.

However, Highpoint's website is still up. So in that respect, it does not appear to be quite as dead as MacKenzie Tower.

[mitchellk12]

Maybe ill just change the thread to 'on hold' until we hear otherwise ?

[Ricopedra]

edit

[alt_center]

Originally Posted by Ricopedra

That's a good idea, mitchellk12. Thanks.

It's too bad because this would really have bolstered the skyline, bringing it across the river in extension and bolstering Broadway with even more new life.

alt_center, was Mackenzie Point their first foray into Edmonton, or have they built there before? Edmonton was booming! It seems weird they couldn't strike successfully when the iron was hot. Are they asking too much for what they provide? There must be a ratio to all this, but in Saskatoon, since folks can drive five minutes from downtown and have a big house and yard, our situation is unique. We're a small city with big aspirations, but given so many choices, most folks still seem to be sticking to their single family dwelling walls. Then in the same breadth, there are huge condo developments in the burbs selling out, one building which could easily be a 16 story building downtown so, never mind. I think people just think with their...cars.

Yep... I think MacKenzie Tower was UC's first venture into Edmonton. I think the location was close to Rogers Arena, but I don't think the views would compare to being right on the riverbank like River Landing and Highpoint. The Saskatoon locations are fantastic.

I also note that UC has done a couple of projects in Halifax, including Gorsebrook Park, which I think took quite a long time to sell. And, they have just started a new project in Halifax, NRTH. Bottom line: it appears that UC is still in a position to proceed with projects, even if they don't sell out in a weekend, as long as the economics make sense.

[Ricopedra]

edit

[prairieguy]

We had friends that "purchased" in the initial offerings. Based on the square footage and entertaining space they wanted, they bought a 3 bedroom unit but planned to blow out the wall between living room and one bedroom to expand that space.

I wish more developers would offer a decent floor space with 2 master suites. For us empty nesters, we are looking for a nice master, a nice guest suite and more space dedicated to having friends over (when safe to do so again)

Developers that are on here....please take note!!!

[prairieguy]

So the rendering has been stripped off the side of their sales building on Broadway. Does anyone know if they ARE working on new rendering/design of the project....OR...given how Covid is still impacting economy, is this project dead?

Any inside insight would be appreciated! I believe their original intent was to come back in 2021 with a redesign removing commercial space.

[alt_center]

Originally Posted by prairieguy

So the rendering has been stripped off the side of their sales building on Broadway. Does anyone know if they ARE working on new rendering/design of the project....OR...given how Covid is still impacting economy, is this project dead?

Any inside insight would be appreciated! I believe their original intent was to come back in 2021 with a redesign removing commercial space.

Maybe that's a good sign... maybe they are getting ready to put something new up? Until they haul that showroom away, I hold out some hope. And as I mentioned previously, when other projects died, they took down their websites. The highpoint website is still up.

But, I can't imagine trying to market this like they do (i.e. with a throng at the showroom) until some semblance of normality has returned.

[prairieguy]

You are right....their mob/panic marketing strategy would not work right now! lol
I do hope they continue with the project. There are some "major" projects being built or proposed(Knox Tower)...but since ALL of them are rentals, I firmly believe there is still room/demand for another condo tower in Saskatoon. Hope UrbanCapital has ears on the ground here to keep them up to date on market.

[Echoes]

The site is too lucrative for them to walk away from in my opinion. I think it's just a matter of when, not if.

That said, I don't predict shovels in the ground on this land for a few years yet. I will be quite encouraged if we see the revised proposal unveiled sometime this year.

[canuck10]

Originally Posted by prairieguy

So the rendering has been stripped off the side of their sales building on Broadway. Does anyone know if they ARE working on new rendering/design of the project....OR...given how Covid is still impacting economy, is this project dead?

Any inside insight would be appreciated! I believe their original intent was to come back in 2021 with a redesign removing commercial space.

Haha! Sorry to disappoint. I walk by there every day. The rendering was gone the morning after we had our 100 km per hour winds. I'm pretty sure the wind stripped it off. I wish I was wrong and something was afoot but I think not.

[prairieguy]

Well....that makes sense!

[saskatoon4321]

So, Highpoint - it was a complex build architecturally, with the two story podium, condo tower on top. Initial sales were good (no one expected a sellout like No 1, as the market is different, but the sales were very strong) however, the aim for main floor retail and 2nd floor office that the condo sat on became unrealistic with the pandemic. Office space is not at a premium, and retail is tough. And given a swanky new building (with a high build cost to build something of that scale) the lease rates would've been relative to the location and build...not realistic in the given market.

None of that changes the goal, though. Urban and it's local partners are still dedicated to the project, the land is owned and development approved.

It's far from dead in the water - just a victim of circumstance. (Aren't we all these days?) And the goal is to come back in touch with the changed market because the passion for the project (and location, and team, and so on) hasn't changed.

[prairieguy]

Saskatoon4321....are you on their sales team??!!

You make a lot of good points and a persuasive opinion! I certainly hope your optimistic outlook comes true. I think most of us would like to see this proceed.

Welcome!!