The first phase of Sage Condos by IN8 Developments sold out fast, and the team is back again with the release of a taller, even more exciting luxury building,.
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.