The Bronson - Likely 70% an Apartment Building says Lamb

As quoted in last weeks Ottawa Business Journal, Brad Lamb has confirmed that "there is about a 70 per cent chance that his company, Lamb Development Corp., will either market the 19-storey, mixed-used tower as an apartment complex itself or sell it to another institutional investor, which will then reap the long-term rewards of rental income."

The article speaks about the increasing rental market across Canada - "Toronto, which has more than 20 apartment projects under way, but many housing analysts say it’s only a matter of time before things pick up here [in Ottawa]." Citing reasons such as low interest rates that make construction cheaper, a current condo market, rising rents and higher home prices, along with a lack of high quality (condo-like) rentals.

What does this mean for single investors who purchase pre-construction units to rent out?
 

The Bronson - Cancelled? Sold? Rentals?!

In a recent Globe and Mail article it was mentioned that Lamb Development has sold the "$90-million condo project... to an investor". The article implies that Brad Lamb sold the building to an investor who is turning the project into a rental building. Bronson is/was located at 196 Bronson Ave.

Digging further, Fortress Real Developments has announced that the development team submitted a revised development application for Bronson back in October for review by the city. "The 21 storey, 212 unit apartment project is currently being contemplated as a rental as opposed to a condominium." as per their website.

Stay tuned!

View the Globe and Mail article HERE. Excerpt "Even Toronto’s “condo king” Brad Lamb has turned to the rental market, recently selling a $90-million condo project called the Bronson in Ottawa to an investor. When Mr. Lamb unveiled the project in 2013, Ottawa’s condo market was booming, but it has cooled off amid a glut of new construction. “By the time we had closed on the project the market had shifted significantly,” said Ben Myers of Fortress Real Developments, which was financing the project. “A lot of projects came in on a few years and it was just too much.” - 

Fortress Real Developments - Market Manuscript Spring 2015

Fortress Real Developments, has now released the third edition of their semi-annual Market Manuscript. This is the third edition which is an in-depth analysis of available real estate data and projections, delineated by market, and grounded in solid research. It profiles the Canadian Market as a whole along with individual markets such as Ottawa, Toronto, Calgary, Edmonton and Winnipeg, along with local and national trends.

The 50 page report is written by analyst Ben Myers, a 15 year veteran of researching real estate markets across North America. "There are a lot of conflicting reports on the real estate market. These studies rely on oversimplified calculations, which lead to misleading results. It is important for both buyers and sellers to know who to trust," says Myers. "That's why we put this Manuscript together: to promote the best analysts, and dispel common misconceptions."

Highlights include:

• No one thinks there will be a national crash: Despite the predictions of doomsayers, nearly two-thirds of analysts now believe that there is less than a five per cent chance of a housing correction over the next five years. Indeed, RBC Global Asset Management even believes that Canadian house prices are undervalued by four per cent.
• Analysts disagree on the definition of a housing bubble: Survey results indicate no consensus on the level of price growth that suggests a bubble, with a need for speculative buyers to be included in that definition. Foreign condominium buyers are not bad for Canada, and analysts concur that they will not immediately flee the market should house prices decline drastically.
• Ottawa is expected to rebalance in 2015:  Although data providers have reported divergent results of year-over-year price growth, the fundamentals – employment growth – are still positive. Condominium apartment prices and absorption should improve, following a rare period of overbuilding and over exuberance in the typically staid market in the nation's capital.

Download the full report HERE.

Note* Fortress Real Developments is involved with Gotham Ottawa, SoBa Condos, the upcoming Bronson, among others outside of Ottawa.

*taken from the Market Manuscript Spring 2015