Food for Thought: Condo Building

"It is difficult to be a condo builder. There is only a paycheque every four years and the risk factor is high. There are a million components and a series of checks and balances in place. And there are problems."

—Bill Malhotra
CEO & President, Claridge Homes

Claridge joins in on Westboro's condo rush

Not content to leave the development riches of Westboro all to Ashcroft, it seems that Claridge has gained a toehold at the corner of Kirkwood and Richmond Rd, with a proposal currently in place to redevelop the existing commercial space into a mixed use project of 241 condos, ranging in height from 6 to 9 storeys.


As a local I'll come out and say that I don't feel good about this plan, having watched so many independent enterpreneurs relocate elsewhere as older commercial and light industrial spaces are re-developed, and leases skyrocket accordingly.

The irony is that it changes the fabric of a community significantly, and is a loss of the very diversity and mix that make these older neighbourhoods so much more appealing than life in suburban sub-divisions. Fingers crossed that urban life in Ottawa isn't destined to be the domain of Starbucks and Shoppers Drug Mart.

Light Rail Condo Connection?

As plans for Ottawa's Light Rail Transit (LRT) project solidify, city planners may actually be contemplating yet another attempt at a collaboration between Claridge and the City—as incredible as that may seem after the Tribeca/Portrait Gallery fiasco.

You see, a little known fact is that Claridge struck an $18 million deal with Shamrock Parking in 2008, giving them ownership of some of the city's choiciest development opportunites. First and foremost is the surfaced parking lot at 383 Albert St which lies directly across the street from Constitution Square...


...and is right on the city's proposed site for an underground transit tunnel and a station platform to serve the western edge of downtown. It is also a hop, skip and a jump from Alterna Saving's parking lot, where the City was planning to build the Ottawa Library's new main branch.

City planners have been referring to this as the "Library Site" and the plan was to build the entrance to the tunnel at the base of the Library that connects to the station platform:


Small problem: the City was unable to negotiate the purchase of this site from Alterna Savings [click for article], and the better—much better—idea of relocating the Library's Main Branch to the old Union Station across from the Chateau Laurier is slowly gaining steam. So thoughts turn towards Claridge, who will be developing the gap pictured above between Constitution Square and the now defunct "Library Site".

Claridge's proposal for this lot calls for 3 rather Toronto-esque condo towers, one at 22-storeys and the other two at 28 storeys, housing a total of 485 units. Given that the LRT would be right at their doorstep, City Hall staffers have been musing as to whether Claridge would be amenable to a direct link to an underground LRT platform from their proposed complex.

On the surface, this is a very attractive proposition for both retailers and residents, particularly those averse to the intensity of Ottawa winters:

But this becomes less attractive when the discussion turns to who will pay to maintain and service an underground link that includes elevators, escalators, a lobby and a security system.

I applaud the idea in theory but with condo fees already averaging 35 to 40 cents per square foot for new construction, Claridge will need to do some number crunching and careful negotiation with the city if this idea—a very good one mind you—is to be economically feasible for all affected... City of Ottawa taxpayers included.

Friday Mixed Bag

I occasionally review web logs to see which searches bring visitors to this blog. Sometimes these take the form of a question, a few of which are answered below:

"Are Claridge condos any good?" Well, good is a relative term, isn't it? I have several clients who have been very happy with their Claridge purchases while others have told me that they don't care for their projects. Evaluating a builder is a very subjective exercise that starts with your expectations, but the Tarion website does provide a limited summary of builders' track records:

http://www.tarion.com/HOME/Find+a+Builder+2.htm

"Is it better to buy a condo or a freehold townhouse?" I cover the pros and cons of condos versus freehold ownership pretty thoroughly on my website—click here. Again, any clear answer would depend on your own wants and needs but most townhomes do offer more space for your money, along with more maintenance and sometimes more expense.

"How secure is EcoCité Ottawa?" Well secure is a subjective term, isn't it? But almost a third of the project's 25 units were still unsold after 5 years... the project became insolvent in August 2009 and all original purchase contracts were cancelled... buyers who paid up front for upgrades to their units have not been reimbursed... all units were relisted on MLS in October 2009 for up to $150K more than their original price... a number of the buyers retained legal counsel and requested that Tarion investigate the builder... and when I drove by last week the building's front doors remained barricaded and no units have been resold on MLS. But as I said, 'secure' is a subjective term.

Tribeca Launch Rescheduled

With the sales centre still not quite ready, Claridge has revised Tribeca's VIP launch to Thursday, February 25. Those interested in attending the "pre-release" must register directly with Claridge Homes (link below) to receive an invitation by email as soon as the date is confirmed:

Tribeca Registration

Tribeca Condo Update

Much ado over at Claridge that a third party website has been taking advantage of the "Tribeca" name to redirect and capture interested buyers with promises of updates and inside information.

For the record, Tribeca is not being represented by any third parties outside of Claridge Homes. In fact, Claridge has suspended its usual realtor co-broke program for the first 30 days of sales after the launch. A disappointment for realtors to be sure, but understandable given the cheap web gimmicks being used by some third parties to cash in on the development before it has even been launched.

That said, the initial release for Tribeca is slated for Thursday, February 18 and will be by invitation only to those who have registered with Claridge Homes through their website, link below:

Claridge Homes Registration

Welcome to Tribeca (the Claridge version)

With suite names like "Bowery", "Times Square" and "Broadway" over at Claridge Plaza 3, it would seem that Claridge is in a New York state of mind these days. So welcome to Tribeca, Claridge's latest ambition for downtown Ottawa slated for 187 Metcalfe St between Lisgar and Nepean:

(Architect's drawing of a bit of NYC in Ottawa)

If this location seems familiar, recall the joint bid by Claridge and the City of Ottawa for the national portrait gallery that the federal government was pretending to sponsor back in 2008.

This was an arduous and drawn out affair with much name calling and finger pointing in the media. Some councillors decried Claridge for "blackmailing" the city for permission to build 27 storeys in an area zoned for twelve. The end result? Claridge was granted permission to build 27 storeys in an area zoned for twelve, despite that the federal government cancelled plans for a portrait gallery altogether:

(Tribeca's twin towers as seen from Nepean St)

Now that the dust has cleared and the bad PR has faded, work is well underway for the February 2010 launch of Tribeca, downtown Ottawa's largest condo project to date with two 27-storey condo towers along Nepean St, office and retail space, and a bank of townhomes on Lisgar St.

In an attempt to "contribute to the fabric of the neighbourhood" (as quoted in the Centretown News in November 2009), Tribeca's commercial space calls for a grocery store and daycare centre at ground level, both of these essential services that are sorely lacking in downtown Ottawa.

Taking a cue from the name Tribeca, I note with interest that this project will be marketed as "NYC-style lofts", which is quite a departure for Claridge. Could this edgier side of Claridge be in response to Urban Capital's success with The Mondrian and Central? Certainly the curved facade of the eastern tower is some of the most risqué design Ottawa has yet to see:


Plans filed with City Hall call for 9 units per floor, larger than comparable units at The Mondrian, mostly open concept and some with exposed pillars, ranging in size from studios at 532sqft and 1-bedrooms at 645sqft, up to 1065sqft for a 2-bedroom suite:


Tribeca is due to be launched this coming month. Given Ottawa's recent thirst for urban condos and this project's choice location just a block from Elgin St, I predict that Tribeca could be Claridge's fastest selling project so far.

Claridge brings "Tribeca" to downtown Ottawa

The sales centre originally used to sell Claridge Plaza was moved to the corner of Lisgar and Metcalfe this past week, where it will be reworked into a NYC-style loft as part of Claridge's latest project, Tribeca (perhaps better known as the site of the now defunct Portrait Gallery):


No doubt buoyed by the recent feeding frenzy over Claridge Plaza 3, Claridge is now moving full steam ahead with downtown Ottawa's largest and most ambitious residential development: two 27-storey towers of NYC-style "lofts" which are set to include office space, a major grocer, daycare and townhomes fronting Lisgar Street. The sales centre is scheduled to open February 2010. More details to follow in another post.

Claridge Plaza 3, Take 2

No rest for the wicked as sales proceed apace for Claridge Plaza 3, with approximately 50% of units sold over the past 2 weeks.

Investors, quite predictably, have snapped up The Broadway, cozy 440sqft studios that will be well suited to short term renters and those in need of a pied-à-terre—starting at $180,000 these made for an attractive investment:


The "People's Choice Award" goes to The Howston, a 1-bedroom plus den at 660sqft facing Rideau St — possibly because of its views of the East Market Lofts and other points north? As of this posting, all but two of the Howston units have been sold, priced from $258,000 to $295,000:

With regards to the Howston layout, I must confess that I remain ambivalent about the overall usefulness and desirability of "the den". With laptops and Blackberrys being the modern choice for home technology, these spaces often see more use as a TV room, rather than an office or guest room. That said, the den has become something of a fixture in Ottawa's new condo market and seems to be with us for the forseeable future.

At any rate, the Howston den is actually an alcove between the bedroom and the bathroom, space I would rather incorporate into the bedroom, with a walk-in closet connecting to a "cheater ensuite".

The trade off in buying a unit facing South will be the eventual view of Claridge Plaza 4, but on lower floors this will be compensated by the planned greenroof between the two towers, but more importantly the absence of the transport trucks that ply their way along Rideau St at all hours of the day and night.

This would be one of the reasons my pick of this project is The Canal, a well designed floorplan that covers 665sqft with a generous bedroom at 10' x 11.5' and a separate walk-in closet with almost a third as much space.

Although this one bedroom is only 5sqft larger than the Howston's one plus den, I find the living/dining room more useable as well as more generous, spanning a full 21ft. I also prefer that the entry closet is adjacent to the front door, not the washer/dryer:


Lastly, I love that the balcony is framed on its left by the unit itself, rather than jutting out from the building, which has sadly become the norm. Is it just me that feels somewhat uncomfortable drinking a martini on a glassed-in precipice, 15 storeys high? OK, maybe it's just me...

Update: Claridge Plaza 3 Now On Sale

The wine flowed freely and the crowds were thick and giddy at yesterday's pre-launch for Claridge Plaza 3:


Phase 2 is well underway with an occupancy of early 2011 and Phase 3 begins in early 2010 with the demolition of the National Bank of Canada building on the southeast corner of Rideau and Cumberland St. In keeping with Phase 1 and 2, Claridge Plaza 3 is offering much the same formula: basic yet affordable urban home ownership, steps from all the fun and madness of the Byward Market.

The floorplans for Phase 3 seem to suggest that Claridge has decided to focus their attention of two groups of buyers: the first time urban dweller more concerned with location and price than size or upgrades, and the affluent baby boomer also looking for a prime location but with the view, space and amenities to show for all of their hard work.

Given that these units won't be ready until mid-2013, pricing for Claridge Plaza 3 represents great value in light of how Ottawa's downtown condo market has been performing over the past few years. Another posting follows with pricing and details of my picks for this project.

287 Lisgar St brings Claridge to the OMB

Speaking of the OMB, I note that Claridge is set for a pre-hearing regarding their application to the City for the development of the site at 287 Lisgar St between Bank and O'Connor across from the Dominion Chalmers Church:


Some of you may remember reading about this latest fracas between the City and Claridge over their proposal of an 18-storey, 121 unit building, a full 6 storeys higher than current zoning permits.

This would be the same zoning that city staffers admitted in their report was a confused mess: "The conflicting and inconsistent planning policy and regulatory environment in this part of Centretown makes it difficult to come to a definitive conclusion on the appropriateness of this proposal. There is no clear framework."

Also included in the city's report are comments put forth by the public, in itself always an interesting read:

• "Buildings of the height proposed tend to make the area less liveable."
• "If approved, the proposed building would adversely affect my view."
• "The proposed development will cause an increase in the amount of traffic on our street."
• "The extra people who will live in the area will support the local businesses."
• "This proposal will give the opportunity for people to live downtown and not need the use of an automobile to get around."
• "This is an excellent opportunity to achieve the City's intensification goals in the downtown."