In addition to introducing Waterloo Region to the Cushman & Wakefield platform of services (more on that soon), we had a very special announcement to make.

We’re absolutely excited to formally advise that the team led by Cushman & Wakefield has succeeded in winning an RFP to deliver a market, development and design strategy for the Region of Waterloo’s planned multimodal hub in the heart of Downtown Kitchener that will be served by a new light rapid transit (LRT) system, GO (commuter rail) Train, VIA Rail (passenger service) and local and regional bus hubs.

This was a team effort headed up by the Cushman & Wakefield Valuation & Advisory Team led by Scott Chandler and Julian Colman, with cooperation from our very own Cushman & Wakefield Waterloo Region Office and our stellar sub-contract Partners:  Brook McIlroy, Stantec Consulting, Arup and Urbanation.

As a team we succeeded in besting some very significant competitors, who had substantive prior experience working on the Mulitmodal Hub, but could not match our plan or qualifications.

We wish to thank each of the Team members for their contributions to our success;  well done!  And we look forward to working with Region of Waterloo and all of its respective stakeholders on this exciting and forward thinking project.

Once again, the developer has a turnkey investors package available which includes a fully leased condo, the first year of management, and the condo being fully furnished.

Sage II is at the corner of Spruce and Hickory, very close to Wilfrid Laurier University and just down the road from University of Waterloo.  Steps to the retail hub at King & University,  this is one of premier locations for student housing in Waterloo.

What is unique about Sage II is that this buildling features only luxury 1 and 2 bedroom condos (and 1 + den floorplans). The majority of the student housing surrounding the universities are 5 bedroom units, and there is a large demand for 1 and 2 bedroom units.  DOMUS Housing put together the following research into the demand for 1 and 2 bedroom units.

Domus Housing is the largest manager of rental properties in the university area of Waterloo, Ontario. With a diverse portfolio of almost 3000 beds, Domus rents a wide array of housing options anywhere from bachelor apartments, to 7 bedrooms houses, to the most common accommodation available in Waterloo, 5 bedroom apartment suites. As of 2012, 75% of the Domus portfolio is made up of newly constructed, purpose-built student housing and over 90% of this is made up of 5 bedroom suites. Based on the below statistics, the need for 1 and 2 bedroom units is clear: renters want 1 and 2 bedroom units, are willing to pay more for the privacy they offer, and there isn’t enough supply to satisfy the demand.

»CURRENT AVAILABILITY OF ONE AND  TWO BEDROOM SUITES

• Of the entire 3000 bedroom portfolio, which includes houses, only 1.9% is made up of 1 and 2 bedroom units. Of strictly the newly constructed buildings, only 0.03% is made up of 1 and 2 bedroom units.
• All but one of these 1 and 2 bedroom units are located in older, low rise buildings or in basements of older houses. Finishes in these residences are usually original to the building and consequently dated, and worn with age.

»FEATURES OF EXISTING ONE AND TWO BEDROOM SUITES

• 0% of these units feature generous square footages, stainless steel appliances, more than 1 bathroom, dens, in-suite laundry, or onsite amenities such as a cafe, shopping, or gym facilities.
• The only 2 bedroom unit in a newly constructed building, measures approximately 850 sq. feet and is on the ground floor of a building on Marshall St., located  just outside the prime rental area.

»RENTAL STATISTICS OF EXISTING ONE AND TWO BEDROOM SUITES

• The limited number of 1 and 2 bedroom units sell out as soon as they become available, which can be as early as 8 months in advance.
• Despite the huge availability of brand new, 5 bedroom units featuring luxury finishes, students are still choosing older 2 bedroom suites. With lack of availability, renters are paying up to $1300 per month in much older and substandard residences in order to have the privacy of a 2 bedroom suite.
• There is a large existing 3 building development, located within the prime rental area, comprising of about 619 units (predominantly bachelor, one and two bedroom suites) . Rental prices are about $1300 per month and units are typically rented months in advance and renters are wait-listed. These are older buildings with very basic and dated finishes.

»VIABILITY OF ADDITIONAL ONE AND TWO BEDROOM SUITES ENTERING THE MARKET

• No other housing provider in the area offers a large number of new 1 or 2 bedroom rental suites.  Domus manages 1800 individual rooms, in newly constructed 5 bedroom suites.  Only 15% of these rooms are rented in groups of 5. The remainder are rented primarily to individuals or groups of 2 who pay up to $725 per month per person for more private accomodations.
• Units with fewer occupants have significantly less damages and turnover costs.
• Tenants that rent units as a whole are more likely to renew for additional years as opposed to tenants who rent an individual room in a larger unit, reducing wear and tear on the unit.

The demand for 1 and 2 bedroom luxury suites in the heart of the university district is high. Based on the above research, the type of product that Sage II is offering is what hundreds of residents are eagerly seeking.

These condos go on sale to the public next week, but we have been given permission from the builder to give our clients early access to reservations, and special incentives.

Contact me at Benjamin@BenjaminBach.com for a full information package, and to answer any questions you have.

We do not represent the builder.

Sage Condos Sales Update

Sales launched today in Waterloo, and the building already has a majority of the units sold.  There is an extremely limited supply of 3 bedroom condos,  and a decent selection of 5 bedroom condos.  Contact us immediately to reserve the condo of your choice.

Sage Condos is sold out, save for 3 penthouses which have not been released yet.  We have similar product available, contact us for details.

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Sage Condos, Waterloo Ontario

This week we have had a lot of interest from real estate investors in Waterloo’s newest condo development, Sage Condos.

If you would like to review the cash flow projections and  condo floorplans click here to send us an email and we will send you full information.

Sage is a pre-construction condo development at the corner of Hickory & Spruce in Waterloo, very close to Wilfrid Laurier University, and steps to King Street.

Like most of the development in the surrounding area, this building is targetted to students; what sets Sage apart is that it is built to appeal to the sub market of students looking for a premium housing solution, something nicer than the typical apartments around campus, and they’re willing to pay premium rent for a premium condo.

Waterloo’s Student Housing Market

New Building in Waterloo’s Student Housing market  have been in strong demand by real estate investors because of the strong & stable cash flow they offer.  The issue that most investors have is that the size of these student housing apartment building (typically priced from $1,200,000 and up) require more equity invested as a down payment than may be available.

Sage Condos solves this problem, by offering a brand new student rental building with condominium ownership – meaning that you can buy one unit in a brand new building rather than having to buy the entire apartment building.

The Sage Condos Opportunity for Real Estate Investors

Sage Condos has been specially designed to be an easy real estate investment to own.

The developer has partnered with DOMUS property management to offer turn key hands off property management for owners, and DOMUS has a very generous incentive offer available for people who purchase at Sage (full details available).

The developer is also offering a rental guarantee for the first year, something that is not available with other new condo developments in Waterloo.

Action Required

If you’re interested in a hands off student housing investment, this property is worth strongly considering.

If you would like to review the cash flow projections and  condo floorplans click here to send us an email and we will send you full information.

Public sales start Monday January 23 2012 and the developer is expecting to sell out very quickly.

Advance sales have been strong, and we think the pace will accelerate when access is opened up.

If you would like to receive priority choice of units, contact me immediately.

The View at the42 Condos in Waterloo

This morning I popped over to the42 in Uptown Waterloo to see the sales centre for RED Condos, the latest project from Momentum Developments.

Momentum has done a great job on the sales centre, and the plans for RED look terrific. You can find the floorplans at this link.

While there, I had the opportunity to see one of the Penthouse units. The owner toured us around, showing off their new home.

What a Penthouse! 2 storey exposed concrete walls…. Expansive views of Waterloo to the North and the South… While not yet finished, it’s a pretty spectacular unit.

Check out some of the views below. These are from the 6th floor of the42 condos on Bridgeport.

Inside the42 Condos

And here are some interior images from a different unit here, a sub penthouse (5th floor) at the42:

Another look at the living room:

Buying a condo at the42

the42 sold out very quickly in pre construction when it was launched, but now that it is registered, a couple people have put their condos up for sale on the market.

Momentum Developments built this – they also completed the BPR Lofts across the street at Regina & Bridgeport, and they are behind the upcoming RED Condominiums in Waterloo, that just released their floorplans.

If you’re interested in availability in this great Uptown Waterloo building, send me an email or give me a call.

Interior pictures of the the42 condo sub-penthouse originally posted at WonderfulWaterloo.com

144 Park, Waterloo

144 Park is a condo development in Waterloo that has been selling pre-construction for a couple years – and construction looks like it will finally get underway this fall.

Second 144 Park Tower?

144 Park is a 19 floor tower at the corner of Park & Allen, adjacent to the Bauer Lofts (which features the Bauer Kitchen, and is just across the street from the to-be-built RED Condos in Waterloo), and the rumour on the street is that there will be a second tower added to 144 park.

This has not yet been approved by (or come before) City of Waterloo’s Council, so it is speculative at this point.

The first mention we heard of this was from user Floor2012 at WonderfulWaterloo:

“The second tower would be located on the block of land bounded by Caroline, Park, the Sun Life garage and the 144 Park. If you google map the satellite view you can see that the total piece of land is really a rectangle once the Iron Horse Trail is rerouted. And no I don’t know exactly how the rerouting will happen but I understand that the City favours Mady redeveloping the whole block. Maybe the trail would just run along between the Sun Life garage and the second tower, hooking up again on Caroline Street.

Obvoiusly there must have been alot of discussions and negotiations in recent months between Mady, The City and the group that owned the second piece of land. I heard at one point that this group (some of which were involved with the Bauer) were planning their own condominium on this site.

Now Mady expects to build a second building that will be compatiable architecturally with the 144 Park. I don’t have all the answers. I’m just one of the over 135 people who have purchased at 144 Park and received an update from the developer this week.”

Interested in a Condo at 144 Park?

If you’re interested in a condo here, send us an email or give us a call.

For pricing & availability of the condos at 144 Park in Waterloo - the remaining units in the first tower, or in the rumoured second tower - , call me at 519-772-4376 or email me directly at Benjamin AT BenjaminBach DOT com.

If you are interested in other Waterloo Condos, let us know what you are looking for. We have a selection of condos available under $200,000, as well as other pre-construction developments.  Whatever type of real estate investment you’re looking for, we can help you with it.

(Images courtesy of 144 Park.)

This mid rise condo loft development was just completed this year, and has a prominent Uptown Waterloo location at Bridgeport & Peppler.

Momentum Developments is getting a lot of love around Waterloo these days for the release of their new development, RED Condominiums, which debuted last night to a VIP crowd and proceeded to sell out half the building.

the42 Condos on Bridgeport

The residential condos were completed this summer, and the building was registered as a condo last month.  Once a condo building is registered, owners receive title (ownership) and can sell their units on the MLS if they wish.

the42 Condos Resale Prices

Since registration, two condos have sold at the42, and the prices bode very well for everyone who bought back in 2008 during pre-construction.

A 2 bedroom unit was just sold by a private owner, and it sold for $392 per square foot.

A second unit was sold, and it hit $400 a square foot.

the42 Condos have been a very good investment so far – the average price was under $300 per square foot when these were sold pre-construction.

the42 Condo Interior Images

PS – remember these great pics? They’re from a 2 bedroom + den at the42 owned by WonderfulWaterloo member Sampson

Feel like there is more natural light in this kitchen than most other?  You’re right.

The owner of this residence worked with the builder to customize the floorplan, moving the kitchen adjacent to the terrace and it’s wall of windows.  I think it looks terrific – and it’s unique.

Notice the low VOC bamboo floors, just one of the lower impact “green” options that Momentum Developments offered at the42.

the42 Condos For Sale

For pricing & availability of the42 condos in Waterloo, call me at 519-772-4376 or email me directly at Benjamin AT BenjaminBach DOT com.

If you are interested in other Kitchener Waterloo Condos, let us know what you are looking for. We have a selection of condos available under $200,000, as well as other pre-construction developments.  Whatever type of real estate investment you’re looking for, we can help you with it.

There are currently two units at the42 condos for sale – let me know if you’d like to set up a private tour.

Half of the RED Condos in Waterloo SOLD

Momentum Developments, the firm behind RED Condominiums in Uptown Waterloo, had their VIP launch party last night – and what a night it was.

After all the dust settled this morning:

Momentum Developments sold more than half the units at RED Condos.

Every condo under $300,000 sold.

Every Studio condo sold. (Pricing was between 218,900 and 241,900)

Every 1 bedroom condo sold. (Pricing was between 257,900 and 344,900)

All but one of the Sub Penthouse condos (fifth floor) sold.

One Penthouse residence sold.

There is a great selection of 1 bedroom + den units, and two bedroom units left – everything else has been sold.

Purchasers were a mix of real estate investors and residents looking for an Uptown Waterloo condo.

Clearly, people want to invest in Waterloo, Ontario – proving what REIN has been saying for years. (See “Ontario’s Top Investment Towns”) – after all, people who purchased condos at the42 have seen a very good return on their investments (See: Resale prices at the42 Condos in Waterloo).

Big congratulations to the team at Momentum Developments – you’ve brought another exciting project to Waterloo, and the market has responded with a resounding ‘Thanks!’

Floorplans for Red Condos in Waterloo

If you’re interested in floorplans, we have them available here:  RED Condo Floor Plans.  If the floorplan you’re looking for hasn’t been added to our site yet, just send me an email & I will send it directly to you.

Pricing for Red Condos in Waterloo

For pricing information on the Red Condos in Waterloo, call me at 519-772-4376 or email me directly at Benjamin AT BenjaminBach DOT com.

If you are interested in other Waterloo Condos, let us know what you are looking for. We have a selection of condos available under $200,000, as well as other pre-construction developments.  Whatever type of real estate investment you’re looking for, we can help you with it.

Images of Red Condos in Waterloo courtesy of Momentum Developments.

When people talk about the Hospitality sector of Commercial Real Estate, they’re usually talking about Hotels, Restaurants, Convention Centres, Golf Courses & other tourist attractions.

In Kitchener Waterloo, the Hotel sector is hot.  2010 saw the sale of the St Jacobs Best Western (south of the St Jacobs Market) & The Destination Inn on King Street in Waterloo (opposite Conestoga Mall)  to an accomplished hotel operator who owns luxury Hotel properties in the UK & India.  The new owners plan to renovate both hotels (which are in good condition now) to become higher end and more “business friendly.”

The Waterloo Inn completed a multi million dollar renovation & exterior upgrades earlier this year and seems busier than ever.  I had a great lunch there last month at Rushes, the high end restaurant on site.

Many hotel developers & operators are actively looking for sites in Waterloo Region – there is strong demand from both local and international firms.

There is also new hotel stock coming online; the hotel at the Barrel Yards in Waterloo (formerly the Canbar lands) has started construction, but work has slowed considerably in recent months.

At Andrin’s City Centre condo project, the local partners for the Mayfair Hotel restoration have been announced, and there is talk about a Charcoal Group restaurant up top (totally unconfirmed at this point, although one of the Charcoal Group partners is a partner in the Mayfair Hotel restoration).  The renderings look awesome; this will be a tremendous asset for residents at City Centre and everyone who works, lives & plays in downtown Kitchener.

Artist's Rendering of The Mayfair Hotel Restoration & Expansion

Speaking of Charcoal Group, they have a new restaurant coming to The Shops at Uptown Waterloo.  Right now, the entire interior South Wall is behind construction hoarding, and Shoppers Drug Mart (currently on the North side) has announced a new 12,000 square foot store for part of that space.  I anticipate that the restaurant will be in front of this space or in the previous Shoppers Drug Mart space.  Hopefully there will be a patio – if you hear anything, send me an email or tweet & let me know!

Frat Burger just opened at the corner of King & University (in the Starbucks plaza) and is supposed to be very good.  They say they have a vegan burger, so we will be checking it out this week.

The Morty’s patio is packed every time I drive by it, and everytime we’re at Wildcraft, Bauer Kitchen or Charcoals they are full.  Morty’s has the regions best wings (back when I ate them), and serves vegan burgers & pizza for those so inclined.  Probably the best place to watch football on a Sunday in Waterloo!

Times are good for popular restaurants in Waterloo Region, and as condos like 144 Park (demolition starting this summer) RED by Momentum, City Centre, Arrow Lofts come online – and looking further out to 2016 when LRT is slated for completion – expect things to get even hotter.

King and Victoria was once the site of a footwear factory, with a leather tannery down the street. Today, it features trendy lofts, a medical school, the region’s future central transit hub, and is a stone’s throw from great restaurants and offices of companies like Google and Manulife.

How did Kitchener’s warehouse district become such a desirable place to live, work and play?

Click through to hear what I think are the three factors behind the emergence of Kitchener’s Warehouse District.

I’d love to hear your thoughts on it!

Investing in Apartment Buildings

Discover the differences between investing in Multi-Family properties & Residential Homes

There are 4 very important differences between investing in Single Family homes and Investing in Multi-Family properties, and these differences are described below:

Difference #1 – Trial & Error

You can ‘attempt’ to invest in single family homes, and if you make mistakes they are, in most cases, not very costly (on the grand scale). In fact, ‘attempting’ to invest in single family properties is how you learn the process.

With multi-family properties, the universe is not very large. This means that there are substantially fewer players in the game (realtors, bankers, vendors, investors). There are also not nearly as many properties. What this means is that you will earn a reputation in your target market very quickly and this reputation (right or wrong) will precede you as you attempt to enter into transactions and look to close your deals. So you will need to be prepared and knowledgeable about your market BEFORE you make your first offer. And more importantly you will need…

Difference #2 – Money

In 99% of cases involving multi-family investing, you will require a substantial amount of liquid investment capital and a strong net worth statement. This can come from a combination of you and a joint venture partner or from yourself alone.

With single family property investing, it is quite easy to find the money AFTER you have found the deal. In fact, some of these transactions require little or no money to complete. In addition, when investing in a single family condo or house, the down payment and closing costs are quite low. This is very different from the multi-family investing world – you have to multiply the complexity.

Due to the tighter time lines in doing your due diligence and the approval process, it is extremely difficult to start hunting for a financial partner after you have found a building.

Meaning, in order to keep your reputation and to ensure that you are getting the best deals possible, you will need to have all of your partners and finances arranged up front. You (and your partner, if there is one) must have your Sophisticated Investor Binder in place, you must know your financing ability, and you must know that you can close on the property on time. If you do not and you end up failing to close on a couple of properties because you really didn’t have your financial ducks in a row, you will be hard pressed to see another good deal come across your plate in the future.

Now some good news:

Difference #3 – No Real Limit

Often, when investing in single family properties, an investor will hit the ‘financing wall.’ This artificial wall is created by lending institutions and is put there to limit their ‘risk’ with each investor. These rules have changed within the past 18 months and have become tighter, so being up to date is critical. It is a basic financial calculation that tells them when they believe you are at your limit for borrowing and it doesn’t matter how good the property is that you are bringing them.

If you’d like to hear an audio interview with and investor who has seen these profits by building a portfolio of over 1,200 properties, click here.

The good news is that when investing in multi-family property, the wall is not in place. The lenders look mostly at the financial performance and potential of the building, with the lender being secondary to the equation. As long as the property fits their system, you stand a good chance to get your approval. There isn’t any artificial wall – it is completely a financial transaction. Which leads to…

Difference #4 – Business Transaction

With single family homes you are often dealing directly with someone who lives in the property and has an emotional attachment. The sale of the property is often one of the largest financial transactions they will ever undertake, and most don’t have very much experience in the ‘business side’ of real estate.

When dealing with the majority of multi-family vendors and more experienced realtors, you will find that the discussions follow a more business-like pattern. Numbers are the key elements in the transaction and your ability to justify your offer and your terms will all boil down to business and the discussion of what is reasonable and what the banks will finance. There are many more prevailing facts available in the multi-family investing world which help to reduce risk.

Conclusion

These are just four of the many key differences between investing in single family homes/condos and multi-family investing. Each style of investing has its pros and cons, each has its risks and rewards. It is often stated that an investor should really complete between 7 and 10 single family transactions before they even attempt multi-family investing. This will give the investor the foundation of knowledge, confidence, and relationships from which to build a successful multi-family portfolio.

If you’re worried about how the recent changes in Canadian mortgage rules will impact your real estate investing…looking for a safe, proven way to make the banks work for you…or even just ready to take your game to the next level…

Then it’s time to consider a jump into multi-family investing.

Multi-family investing is one of the fastest, safest ways to accelerate your portfolio for huge monthly cash flow and massive profit pay-outs — even in tight lending climates like ours — if you know how to do it right. Be sure to visit the ongoing real estate discussion on Canada’s Premier Real Estate Community and Discussion forums >> www.myREINspace.com.

If you think Multi-Family investing is the right means to boost your long-term wealth strategy, be sure to check out all the details on REIN™’s Multi-Family Investing Bootcamp coming up on June 18 & 19 at the International Centre in Toronto. Cheers!

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Don R. Campbell is a Canadian-based real estate investor, researcher, author and educator. He is president of the Real Estate Investment Network™, and Cutting Edge Research Inc. He and his experienced team are leaders in providing Canada’s most current real estate investment education programs and economic research materials.