Condos: If you build them they will come?

Recession, what recession? I can’t believe the number of developers who keep announcing plans for major new condos or are proceeding with development permits applications despite the economic downturn in Calgary’s economy.  It seems that every week a new project is announced.

Ezra condo's construction is moving forward - I was wrong.

This is especially happening in the communities near downtown where the employment population has declined the most, which should result in a decreased demand for City Centre condos. Perhaps condo developers know something I don’t?

I was sure Ezra by Birchwood Properties wouldn’t go ahead in Hillhurst at Riley Park, but I was wrong. It is out of the ground and the site is buzzing with workers.

The same is true for Truman’s Upper West condo on 2nd Ave NW at Crowchild Trail where 3 single-family homes are becoming a 45-unit boutique condo building.

Battisella Developments plans to break ground by the end of year on Ink in East Village with its micro condos i.e. four units at or under 400sf.  

Avli on Atlantic is moving forward in Inglewood while Bucci has broken ground in Bridgeland on their Radius project.

As for Qualex-Landmark they remain bullish on the Beltline, before they finished up Mark on Tenth this summer, they had already started Park Point across from Memorial Park. 

Computer rendering of Ink condo in Calgary's bustling East Village community. 

In October, Wexford Developments and Oxford Properties indicated they had engaged Zeidler Partnership Architects and BKDI Architects to design 37 and 19 storey condo towers (585 condos in total) for the old Calgary Co-op site (the block bounded by 11th and 12th Ave SE and 1st and Centre Streets).

Embassy Bosa is full steam ahead on The Royal condo, which will include a Canadian Tire (second floor) and Urban Fare (street level), making it one of the most complex and ambitious condo projects in Calgary’s history.

And though, the Concord Pacific Development’s uber luxury condo in Eau Claire designed by iconic Canadian architect Arthur Erickson has been struggling since construction began in April 2015 (it was a big hole, with nothing happing this summer) now has a crane on site and a neighbour living in the Princeton next door says, “they are going full-bore, six days a week.”

I couldn’t even finish this column without another project being announced.  Village in Bankview by developer RNDSQR and designed by MoDA architects is at funky 78-unit condo that will have 30 unique floor plans.  It is designed to appeal to empty nesters, young professions, families and those with special accessibility needs; that is why it called Village.

Computer rendering of the proposed Village in Bankview project. 

By The Numbers!

It is not my imagination there is a condo boom in Calgary’s City Centre, CMHC’s stats show 862 new condo unit starts in the first nine months of 2016 – an 87% increase over the same period last year.

Not only were the number of starts impressive but so were the number of completions – 1,786 condo units were completed in the first nine months of 2016. Granted not all of the units are sold, this still means there are probably 2,500 more people living in the City Centre today than there were this time last year.

Outside The City Centre

While the City Centre is hot, condo starts overall in Calgary for the first nine months are down significantly from 4,333 in 2015 (a record year for condo construction city-wide) to 2,882 this year.  However, some recent non City Centre condo development announcements might be an indicator of optimism in 2017.

In September, West Campus Development Trust announced its first two University District residential projects - Ivy by Brookfield Residential and Noble by Truman Homes. And, in October, Calgary Co-op announced it is looking to redevelop its Oakridge site with a new grocery store surrounded by condos. 

Phase One of Park Point is now above ground and construction is on schedule for occupancy summer of 2018. 

Last Word

As 2016 comes to a close, I am cautiously optimistic 2017 will be a turnaround year for Calgary’s economy and I am not alone.  Bruce McKenzie, VP Business Development, NORR architects’ Calgary office recently told me they are busy with “new projects for Truman, Birchwood, Cardel, Cedarglen, Brookfield Residential, Hopewell and others.”

He added, “They are all well financed, strategically located, mostly out of the inner city with at least half are mixed-use mid or high rise projects.”  

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