Condo or co-op?

A handsome red-brick heritage building in the Golden Triangle, 320 Waverley St pictured below is in fact one of the very few buildings in Ottawa owned as a ‘co-operative’:

More common to larger cities such as Toronto and New York, a ‘co-op’ is a private corporation that has full ownership of a building, its units and common areas. Whereas a condo is governed by the statutes and legislation of the Condominium Act, a co-op is created by articles of incorporation and runs on its own by-laws, rules and regulations, as well as the private contractual agreements that exist between the corporation and its shareholders, otherwise known as members.

Rather than purchasing actual real estate, a co-op Buyer is purchasing one or more shares in the corporation that owns the building. The Buyer now becomes a member of the co-op and has voting rights, along with an occupancy agreement granting them long-term exclusive possession of a specific unit.

A co-op usually has one mortgage for the building itself; an agreement will set out a member's obligation to cover their proportionate share of the mortgage, the operating expenses and the building's annual tax bill. Many older co-ops have no mortgage at all and the Buyer must pay cash, or make a sizeable downpayment (25% or more) and have the remainder financed by the co-op. It is important to note that most banks will not finance the purchase of a co-op apartment—a lender cannot foreclose without a deed and a mortgage.

Also of note is that both ownership and responsibility is joint; should one member default on payment of the mortgage or taxes, all other members must pay out of pocket to make up the shortfall, or possibly risk losing their equity in the corporation. As a result of such risks assumed by a potential Buyer—and the difficulty in financing these purchases—co-op units are often priced well below market value.

The importance of getting along with your neighbours—in this instance fellow shareholders—can not be overstated. Those who follow the tabloids may remember that Madonna sued the members of her co-op board in NYC for blocking her purchase of an additional unit in her Central Park West building.

Retaining the services of a good real estate lawyer is a must when buying into a co-op. She will be the one reviewing the corporation's documents, financial statements and terms of the co-tenancy agreement. Any offer to purchase a co-op must also be drafted on forms specific to co-op purchases. Lastly, note that any offer made by a Buyer is subject to approval by the Board of Directors of the corporation (aka other residents). A review of the applicant's suitability, financial and otherwise, will be undertaken and form the basis of their approval.

Charlesfort 'Merit' Condos to be unveiled tomorrow

All eyes are now on Charlesfort as they get set to launch their latest project, curiously being billed as The Merit.

A site plan application was filed with the City earlier this month for the development of a 20-storey condo on Lisgar St directly behind City Hall. Floorplans will be available online as of tomorrow, Friday January 28th at 5pm. Pricing is expected to be in the range of $450 to $575 per square feet, parking not included.

In yet another departure for Charlesfort condos, this project will be leasing ground level retail space, The Continental being the only other Charlesfort building to feature what is considered a negative in some buyers' books.

Being located just a block off Elgin St and minutes from both the Canal and The Market, the immediate assumption is that sales will be brisk from the get go. But Charlesfort condos are anything but cheap and Ottawa buyers have had their real estate budgets pushed to the limit over the past few years. Given that sales have been slower than expected at other so-called hot locations such as Tribeca and 131 Holland, it will be very interesting to see how sales at The Merit unfold.

Charlesfort to build in the Golden Triangle

An earlier post about new condos in the Golden Triangle is coming to pass, but it is Charlesfort (not SoHo) that will be developing the parking lot at 100 Lisgar St, located behind City Hall:


Plans filed with the City for Lisgar Apartments have Charlesfort asking for a height increase of 8 storeys over the currently zoned twelve. The architectural renderings show yet another magnum opus designed by Barry Hobin—notice the same Gotham City inspiration as Hudson Park Phase I and II, buildings which IMO have been an impressive addition to Ottawa's urban landscape:



For those interested in learning more, a public consultation is being hosted by Councillor Diane Holmes and Charlesfort at 5:30pm today in the Billings Room at City Hall.

SOHO Lisgar coming to the Golden Triangle?

Those of you who browse the Ottawa Citizen's Homes section may have noticed recent ads for the SOHO Parkway condos on Parkdale Avenue. Those of you with truly sharp eyes may have further noticed the small print hinting at a future project named SOHO Lisgar.

Specifically where on Lisgar is open to debate what with so many empty lots prime for development. My guess is the site currently known as 108-110 Lisgar St, parking lots sold in January 2007 with the stated purpose of developing "a mid to high-rise condominium apartment building":


I personally can't think of better news for Ottawa urbanites. The hottest proposed condo location since the East Market Lofts, SOHO Lisgar will bring badly needed units to the Golden Triangle, one of Ottawa's most coveted neighbourhoods, and in a prime location kitty corner to Elgin St and downtown proper. Resale prices for 2-year young units at 138 Somerset St W have increased by 25% in less than a year; if this is any indication of the thirst for newer condos in this 'hood, I would expect to see SOHO Lisgar sell out even faster than SOHO Parkway.

The timeline for an official announcement is anyone's guess, but with the domain www.soholisgar.com registered just weeks ago, I would expect to hear more news about this impending development before the year's end.