for sale.JPG
 
TAS have a few of these projects that are zoned, went seemingly unsold, and now stuck in limbo. This along with the 7 Labatt and 3775 Dundas St W sites.
 
Haha, that last sentence really got me — sounds like they’re saying, “Oh, by the way, you can also try your luck convincing the two homeowners next door to sell.”

Spending $17M for just 0.67 acres already puts the valuation around $25M per acre, and that’s before even assembling the full site or dealing with zoning and approvals.

Imagine paying that much and still having to knock on the neighbours’ doors to see if they’ll sell — absolutely mind-blowing.

Yeah… hard pass!
 
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artyboy123 said:
Haha, that last sentence really got me — sounds like they’re saying, “Oh, by the way, you can also try your luck convincing the two homeowners next door to sell.”

Spending $17M for just 0.67 acres already puts the valuation around $25M per acre, and that’s before even assembling the full site or dealing with zoning and approvals.

Imagine paying that much and still having to knock on the neighbours’ doors to see if they’ll sell — absolutely mind-blowing.

Yeah… hard pass!
Click to expand...

Hold on, they do have zoning approval for the site, without the 2 additional homes. They aren't necessary to build what has been zoned for.

They do need further approvals, but this is a complete assembly and build-able as is.............. IF the price were right.

At 200 units...... the ask is $85,000 per unit in land costs.

In my head that doesn't sound egregious.............

But there are questions to be asked about the pro-forma cost of construction here, the outstanding approval costs, and whether the market would support that.

Based on what builders here are saying, privately and publicly, my guess is not without CMHC financing at any rate..........and probably a rental incentives package from the City.

But I will leave it others here to opine on the pricing.
 
ProjectEnd said:
If this goes it'll be for 10 or less. About $60 buildable. Las year TAS had an offer for the asking price that fell apart (sad trombone).
Click to expand...

Good info PE.

But for others, since it hasn't been stated above, the current 'ask' is in the range of $100.

So PE is suggesting a price cut to something closer to 11.4M than 17'ish.

***

Further thought, PE does this for a living, I do not, so I completely trust his instincts here........... I have to say that's a bit lower than I might have expected and would be curious if PE can elaborate at all on his thinking.

Personally, my worry w/this site as with any other in the area is odor issues from the sewage plant, and how much they impact perceived value. (more of an issue for condo investors than renters, but still impactful)
 
@Northern Light

i guess i will post here too!
Quick back-of-the-envelope analysis on a 0.67-acre development site in East Toronto listed at $17M.

Approved for 156,787 SF residential GFA (~200 rental units). Retail portion excluded for simplicity.

Land: $17,000,000
Construction: $450/SF × 156,787 SF = $70,554,150
Soft costs (15%): $10,583,122
Contingency (10%): $7,055,415

Total project cost: ~$105.2M
= $525,963 per unit

Assuming a 4.75% cap rate and 35% expense ratio,
→ NOI/unit ≈ $24,983
→ Gross income/unit ≈ $38,435
→ ≈ $3,200/month rent needed

Current 1-bed rents in East Toronto (Leslieville) are around $2,200–$2,600/month,
so the math… doesn’t really pencil out
😅


PS: FYI the above assumption assumes the site is ready to go and shovel-ready! So think construction can start tomorrow!!!! Also, consider the soft cost & contingency is bid at the lowest price
 
artyboy123 said:
@Northern Light

i guess i will post here too!
Quick back-of-the-envelope analysis on a 0.67-acre development site in East Toronto listed at $17M.

Approved for 156,787 SF residential GFA (~200 rental units). Retail portion excluded for simplicity.

Land: $17,000,000
Construction: $450/SF × 156,787 SF = $70,554,150
Soft costs (15%): $10,583,122
Contingency (10%): $7,055,415

Total project cost: ~$105.2M
= $525,963 per unit

Assuming a 4.75% cap rate and 35% expense ratio,
→ NOI/unit ≈ $24,983
→ Gross income/unit ≈ $38,435
→ ≈ $3,200/month rent needed

Current 1-bed rents in East Toronto (Leslieville) are around $2,200–$2,600/month,
so the math… doesn’t really pencil out
😅


PS: FYI the above assumption assumes the site is ready to go and shovel-ready! So think construction can start tomorrow!!!! Also, consider the soft cost & contingency is bid at the lowest price
Click to expand...

Good post, but question, what are you using for comparables?

When I look at the Leslieville area and I look at new builds (central air, en suite laundry) I see prices for 2 bdrm hovering mid 3s and up.

3bdrm is 4k+

1 bdrms are definitely a bit lower, but I don't see any new builds renting out at $2,200 a month, those are units in older buildings with laundry rooms and no a/c.
 
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