365Church Project Analysis

365Church Project Analysis

In the past few months, quite a few public media asserted that Toronto condo overbuilt which caused that supply exceeded demand or so called “real estate bubble”. Many investors, including real estate brokers are feeling confused, can not see the market trends, so a lot of people take a wait-and-see attitude. But that is not the case, according to CMHC statistics, the number of new homes built in Toronto in 2011 (33,800) was significantly lower than the growth in the number of families (40,000), which means that the demand is greater than supply. And after Christmas 2012, the Toronto Condo market began to pick up, downtown Toronto has begun to fight for the offer. Land is a limited resource, the city’s land is a scarce resource, the preservation and appreciation is inevitable. Looking back on Toronto house prices in the past few decades, despite of the ups and downs, overall increases are still quite large. I believe the future will remain so.

In early 2013, the famous developer Menkes launched 365 Church, a new pre-construction which has the high ratio of value to cost. 365 Church is now on sale VVIP. Today let me analyze this condo apartment located in downtown Toronto real estate.

1. Location

Allan Garden

To the east side of 365Church is urban oasis, Allen Garden. Residents in 365 Church building could breathe the urban oasis throughout the year. Such living environment in the heart of city can be met without rectifiable. Allen Garden was built in 1958. It is one of the the city’s most well-known greenhouse Gardens. Allen Garden is open to the public year-round. It contains tropical plants from all over the world from palm trees to cacti. There are also seasonal plantings throughout the year. Allan Gardens has six greenhouses with an area of over 16,000 square feet. These showcase a diverse and beautiful permanent collection of plants from around the world including Australia, Brazil, China, South America. Experience nature in a whole new way by getting to know palms, banana trees, orchids, jasmine, gingers and much more!

Ryerson University

Located in the downtown Ryerson University city, 365 Church building is just one minute walk to the main campus of Ryerson. It is very convenient. Ryerson University developed very rapidly in recent years. Many of their majors are leading ones among Canadian universities. For example, their news professional training courses which many of Canada’s well-known news host attended. Their architectural as well as traditional engineering courses are also well known. Nowadays they have total 26,000 undergraduates, 2,300 graduates. However student on campus accommodation is a problem. Because they only have three student apartments which could accommodate maximum 850 students. Therefore many students need to find off-campus accommodation.

Another fact is that it will only take 10 minutes to get to the main campus of the University of Toronto by the College Trams. While rental market near the University of Toronto is already very competitive and saturated. 365 Church real estate with its unique geographical location, will certainly attract many college students of all ages.

2. Shopping and Living

Life in 365 Church will be extremely convenient. It is just 2-minute walk to the Loblaws supermarket located in the Toronto Maple Leaf Garden. The supermarket has an area of 85,000 square feet. It has an array of food, including fresh vegetables, fruit, seafood, cooked food, pastries. That will become an important factor to attract potential tenants. Actually, there are way more other markets in this area. 3-minutes walking distance to College Park on College/Yonge where 24 hours Metro, Phama Plus, Winners and Shoppers Drugmart located. It is only 5-minute walking distance to the renowned Toronto Eaton Center.

3. Transportation

Walking, cycling and public transportation are the most common traffic options for most people living in downtown Toronto. There are quite a few traffic options for people living in 365 Church:
2 minute walk to Church St. tram station;
5 minute walk to College St. TTC subway station;
5 minute drive to DVP highway entrance
2 minute walk to BIXI bike rental station on Church/Gerrard

BIXI bike rental service has become more and more popular among young people living in Toronto downtown. You can rent a bike for a year for as low as $95. It is such a good low carbon living style.

4.Community

365Church is belongs to Church-Yonge Corridor community. The residents in that community are mainly wage earners, accounting for 71% of the proportion of the population. Their income is 23.8% higher than Toronto average. Those data provide a strong basis for the developers to build luxury apartments in the community. At the same time, more and more young working-class choose to live in neighbouring locations which offers tremendous business opportunities for rental and second-hand apartment market.

5. 365 Church Overview

Developer Menkes
Address 365 Church St. (Church/Gerrard)
Price Studio 193,990+,One bedroom 284,990+
Total floor 29
Floor type Studio, 1 bedroom, 1 bedroom and 1 den, 2 bedrooms
Area 323-804 sq. ft.
Strata fee $0.52 per sq not including electricity
Estimated property tax 1% of Sales Price
Downpayment 20% in 18 months
Completion in May in 2017

6. Nearby rental market and second-hand condo market

Take 21 Carlton and 25 Carlton two condo buildings for example. They were built in 2007 and 2008. They are the condo buildings which are closest to 365 Church as well as are fairly new condo in less than 6 years of age. They belong to the same community and are only 3 or 4 minute walking distance to 365 Church.

Current sale price

Take one bedroom and one den suite for example, there were 4 units sold in 21 Carlton and 25 Carlton in the past 6 months. The sold price for 500-599 sq. ft. unit was $352,000. The sold price for three 600-699 sq. ft. units were $389,000, $390,000 and $439,000. The average price per square was $616.75.

Rental

Take one bedroom and one den unit for example, there are 11 units recently rented in the past 6 months in 21 Carlton and 25 Carlton buildings. Those rental units are 600-699 sq.ft. in average area and $1845.45 in average rental income (from $1,700-$2,000).

Not like 21 Carlton and 25 Carlton where rooms are mostly irregular, 365 Church’s rooms are fairly squarer and every bedroom there has windows. They have well designed space layout in both fashionable and comfortable style. Adequate livable space and never to be wasted. Take one bedroom and one den unit for sale on 8th floor for example, the current offer is $328,990 on VVIP, which is $548 per square feet. While its rental income is expected to be $1800, which is 1:182 rental ratio. Therefore it is very investment worthwhile.

7. Developer Menkes

Menkes is a real estate development company founded by entrepreneur Murray Menkes. It has more than 50 years of history. They have developed a number of notable condominium projects in the past 50 years in most of the region’s many sought-after communities, including Lumiere、Pears、Sherway、Gibson Squar、Four Seasons Private Residences、Savvy、as well as Fabrik and Noir in construction. Menkes is excellence from location choice of each residential project to design and construction requirements. The company is known for high quality and high standards of their projects. Besides, Menkes strict requirements of their after-sales service because they are committed to build a high-quality living environment for every household.

365 Church is definitely second to none choice for either investment or living. For those who buy condos for living will enjoy downtown oasis surrounded by mature community life convenience.Located in the Ryerson University campus, 365 Church investors need not to worry about tenants sources. However to invest in real estate is more complicated. You’d better look for professional Toronto real estate agents for best advice.

365 Church is expected to open for sale starting from April 2013. Now is open for VVIP registration. The offer is super good for the first 100 buyers: one year strata fee will be totally waived. And give priority to select the unit and the floor, a rare opportunity, is available on a first-come-first-served basis. Welcome to inquire or make reservations with us. Linda 416-880-3691 or George 647-272-6400.

One Comment

  1. Intrested in 365 church steet. You mentioned 21 and 25 carlton st as reference. Could you send me mls record on the 1 bed room units that were rented in the past 3 months? I want to know how long did it take to rent out so as to consider invest in 365 church street. thanks

Leave a Reply