General University Area Updates and Rumours

[Markster]

http://m.therecord.com/news-story/596286...mpus-areas

Translation: we are concerned we will be unable to fill our residences in the future (like it has already happened to WLU, btw) so please freeze development so we can make a guaranteed penny in our overpriced residences.

My take on the story, is that the size of the housing projects is driving up land prices, and this is land that Laurier has long since planned on eventually buying, to allow for campus expansion. As land gets scarce, and the development potential is increased, the land prices go up and up and up. Laurier is angling to put a damper on development, to slow land value increase, so they can continue to consolidate land at their preferred pace and price, instead of having to dive into a speculative land market right now with borrowed money.

[nms]

If Laurier wanted to buy more property, they would. Even if the area becomes built-out, or bought up, if you look to Toronto, Ryerson in particular has come up with creative ways to engage developers and other commercial tenants while increasing student space (the Canadian Tire with a couple Ryerson stories on top comes to mind). However, Laurier, like the Unversity of Waterloo (and to a lesser degree, the University Colleges) have made a series of planning decisions based on their projections, and messaging that they have received from the Province with respect to enrollment. They have financed and developed residential space based on a series of assumptions. If they are unable to fill their residential space, then they will have to lower rates. I'm not sure how much of their existing residence fee is put towards paying off their mortgages. If they have to lower their rents, the loss will ultimately come back to the University and potentially back to the Province. This would affect other aspects of the University.

At the same time, if the University has to lower their rental rates, how will that cascade to the other property owners? Mr Puopolo, as a developer, is well aware of cost and revenue estimates for putting up a building. If developers start to see downward pressure in their rents, what will happen if the rental income falls below what they needed to earn in order to maintain their buildings and pay off their mortgages for their existing buildings?

[tomh009]

The gap between residence costs and rents is so big that residence costs would have to come down massively in order to significantly impact the rental market. (Also, the number of rental units is far bigger than the number of residence units.)

[rangersfan]

There is a liquor license application notice on the ground floor of "My Rez on Lester " 181 Lester St.

[notmyfriends]

This is so incredibly disappointing to me.
As rentals, this seemed like a prime piece of land for redevelopment. Selling them off ends that idea. Such a shame.

http://www.thewestvillage.ca/

[mpd618]

This is so incredibly disappointing to me.
As rentals, this seemed like a prime piece of land for redevelopment.  Selling them off ends that idea.  Such a shame.

http://www.thewestvillage.ca/

On the other hand - urban, family-sized townhouses with good transit access.

[nms]

Unless sales were really brisk, only 16 units remain for sale, perhaps 1/4 of the units in the development. Is it possible that some of these units were already free-hold towns? Only two blocks are for sale. My bet is that some of the current tenants were given the opportunity to purchase. Alternately, the other units will come up for sale in the coming years.

[MidTowner]

Under 'Floor Plans,' most units are identified as 'Future Release.'

I think these would be a great option for families- I'm presuming they will be thoroughly rehabbed before sold, so you could have a fairly generous-sized townhome with great transit options. Not everyone is interested in an apartment, so this is a good choice to have available.

[Markster]

Yeah, they're only going to be selling them a couple blocks at a time.

Jeez, I'd heard some real horror stories (i.e. massive mold problems) about some of these units. I'd definitely thoroughly inspect before buying.

[notmyfriends]

This is so incredibly disappointing to me.
As rentals, this seemed like a prime piece of land for redevelopment.  Selling them off ends that idea.  Such a shame.

http://www.thewestvillage.ca/

On the other hand - urban, family-sized townhouses with good transit access.

The marketing:

• Available immediately for occupancy or lease with no need to wait for new construction.
  
  
• High demand and low supply of townhomes for student accommodation.
  
  
• History of occupancy and consistent cash flow generation.
  

Doesn't sound like the intention is for families, or for a thorough fixing up of them first; just selling them as is.  And like Markster said, as is is far from decent.  This aligns with the pricing.  So disappointing.

[Markster]

My friend who had the massive mold problem (and severe roof leakage that lead to it), reminded me that, mercifully, her unit was one of the ones that burned down, and has since been rebuilt. So... maybe that one is better than average now?

[Lens]

A few renders for what look like new projects...

105 University W http://pgdstudio.com/205-albert-2/

85 Columbia http://pgdstudio.com/85-columbia/

[notmyfriends]

That 105 University link is confusing. The link itself is 205 albert in the name. And I think there's already a new building at 105 University. And their own write up says "105 University Av. East is a 13 storey residential project located in Waterloo, Ontario, across Conestoga College." Confusing stuff.

[Lens]

I also saw that. It would make sense if it was 105 University ave E, which is right across from Conestoga Waterloo.

[notmyfriends]

Oh, I think you might be right.  That does look like University Heights in the background of this picture:

   

Pretty ambitious project for that location.  It would be a nice change there.