Edmontonium
New Member
Since the demolition there's no movement on the lot
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Edmontonium
New Member
Noticed 2-3 pieces of equipment on site
MacLac
Senior Member
Thinking those mighty machines are only for site cleanup from their recent demo. I know they said they would start their next building “next year, quarter 1 or early qt 2.”
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northlands
Senior Member
IanO
Superstar
Given the lack/very limited success for the first tower, I am curious to see how they revise their plans, finishes, target market and product going forward.
thommyjo
Senior Member
Do you know how the sales did? I know they recently sold a 1.9mil condo there. And the retail lease up has been strong.
Is this tower rentals as well as the eastern side one? I’d imagine both would be. Other than the Grovenor one nearby, I don’t see a ton of competition for the type of apartments they’d be doing if people want to stay outside of Oliver, inside henday, and Westside.
IanO
Superstar
The retail did well, but I was told that the residential portion was more of a 'loss leader' if you will to establish the project.
ChazYEG
Senior Member
Unfortunately, that is accurate. About 1/4 of the units never sold, which is incredibly high. Of the ones that were sold, some are currently in the market for about 20% less that they originally went for.
While there's definitely a market for this kind of product and price point, the location was less than ideal for it, at the time, and probably won't be perceived well enough until the LRT construction wraps up. No one wants to buy an $800k+ high end condo to have construction on your doorstep for over half a decade, especially with all of the traffic. For the same price range, one could buy houses in nearby Glenora, and not have to deal with any of this.
They'd probably have fared better in Oliver, or even Old Strathcona/Garneau.
supaflyryguy
Active Member
Edmonton has far too many "luxury" 1-2bdr apartments, and damn near no "modest" 3-4bdr apartments for families and WFH. Doesn't surprise me that there's low demand for the fancy stuff.
ChazYEG
Senior Member
In all fairness, these are not "luxury", they are proper luxury condos, no quotes warranted.
As for the supposed lack of demand, that's not entirely the case. The location of these was less than ideal for the price point. Had they built this in Oliver, these would've probably sold and retained more value than they did.
I agree with the assessment regarding the lack of 3 or 4 berm apartments, but as long as suburban SFH developments keep being approved unchecked, and prices are relatively low, there will be too little demand for apartments like this.
thommyjo
Senior Member
Wouldn’t glenora be better than Oliver for this price point and demographic? Close, but not “too close” to downtown. Less “poors” around, mostly other luxury homes.
I would imagine a lot of the target would be downsizing glenora residents?
Agreed. Being first in the development is tough for construction inconveniences. Hopefully the next 2 towers aren’t too spread out in timelines.
ChazYEG
Senior Member
At the time of construction-release, I believe that was their mindset. Obviously, hindsight is a b**ch, but considering the new demographic we're seeing here (interprovincial migration from ON and BC), as well as the current trend in Oliver, I do have the impression that it would be more successful there.
To my point, The Clifton is probably the highest-end condo development we've seen in Edmonton in ages, possibly ever, it's about 40% sold, despite the ridiculous price point, and it's in west Oliver. That area is becoming increasingly trendy and very attractive for more affluent people. Especially at the very west end of the neighbourhood (see the enclave of Wadhurst Rd/102 ave/125 st).
I think that was a misguided effort. A condo costing as much as their big ass home, with a hefty condo fee, is little incentive for people downsizing to consider. These units were originally marketed in the mid-to-high 800s for the smallest, up to $1.5M+ for the largest, and condo fees are upwards of $1500.
And to tie in these two points:
It ends up being a little bit about the "old money" vs "new money", vis-à-vis the location and target. West Oliver/Westmount seem to be attracting more of the "new money", like younger professionals (older millennials, in their mid-30s and early 40s) with established careers that are now replacing GenX and baby-boomers in top positions. While a lot of these will still look for SFH, there's a larger percentage of this demographic that thrives in a more vibrant, urban lifestyle.
MacLac
Senior Member
Purpose built rentals it is then!!!!
IanO
Superstar
I'd bet on that.
David A
Senior Member
I don't know if it was a factor, but suspect all the twists and turns related to this site, the delays and problems before it became West Block were a factor in a less enthusiastic response than hoped.
However if so, this is too bad as it turned out nice. So hopefully there will be more confidence in the future. The location, with proximity to the LRT, has plusses and minuses and you don't get to the plusses that much until construction is done.
However if so, this is too bad as it turned out nice. So hopefully there will be more confidence in the future. The location, with proximity to the LRT, has plusses and minuses and you don't get to the plusses that much until construction is done.