News   Apr 03, 2020
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Edmonton Real Estate Market

^ are you thinking about this in terms of just new houses going up?
I'd be very surprised if anything under 10 stories gets proposed for this site. a long frontage onto Scona road is good for CRU visibility, long alley frontage means vehicle access would be relatively easy to design in (as opposed to a more cramped DT site) and the site faces DT directly, just over the trees. 4th story up would have amazing DT, sunset views. a developer with means could do something spectacular with this site, and make that $12.5m purchase price back handily.
not trying to argue, just talk about how the site (and its sale) is transitioning from SFH residential to a commercial situation, which has very different economics, and higher prices. I think the undertone of all this (but I doubt anyone selling wants to say this explicitly) is that these houses are going to turn into towers at some point, soon. they want to get it over with in a clean, controlled way, as opposed to subjecting the neighbourhood to years of land assembly and demolition through neglect as companies try to get stuff together, while a couple mcmansions get thrown up in the middle, breaking up the site.
I think this idea is kinda cool actually, I wanna see inside one of those tower houses though lol!
the $12.5M purchase price is not a real purchase price for this parcel.
 
Back-of-the-napkin, based on real estate deals I've been seeing, about half of that would already be too much, but still reasonable, if we're thinking about just the land. If we consider the buildings as somewhat useful, $8~10M.

I would say less than that. As mentioned nearby Strathcona lots sell for $375-$450k. Even on the high side and a bonus for the assembly of let's say $550k/lot that is still only $5.5M.
 
I don't disagree that this price is high, but:

-it's fully assembled
-it's a view lot
-it's a highly unique redevelopment opportunity
-it has very little in terms of comps or competition

Factor that all in and you could get a 2x from this.
 
Trudeau just announced a 'two year ban on foreign buyers' (for housing) to get more Canadians into homes. Curious to see if this has any meaningful impacts, can be skirted and if it would hold up in court.
 
Trudeau just announced a 'two year ban on foreign buyers' (for housing) to get more Canadians into homes. Curious to see if this has any meaningful impacts, can be skirted and if it would hold up in court.
- It was announced in the budget
- It will be fairly pointless for cities like Edmonton and Calgary, should do something, albeit not very significant, for Vancouver and Toronto.
- Canada is under absolutely no obligation to let foreigners buy property in the country. In fact, most countries have much stricter laws about foreign property ownership than Canada (ban included).
 
^Correct, but he shared it in the more formal announcement today.
-Agreed
-As in 3rd party ways to circumvent this and how that would be dealt with in the courts.
 
Will this ban impact commercial (visitor accommodation) or recreational?

If not, this could redirect those investors into other very heated markets.
 
U.S.-based outdoor specialty retailer L.L.Bean has announced that it will open five more Canadian stores this year as the company continues with its Canadian expansion into new markets. Each of the five stores will be firsts for the Moncton, Kitchener, Kingston, Edmonton and Niagara Falls regions.
  • Edmonton, Alberta – Opening Fall 2022

 
U.S.-based outdoor specialty retailer L.L.Bean has announced that it will open five more Canadian stores this year as the company continues with its Canadian expansion into new markets. Each of the five stores will be firsts for the Moncton, Kitchener, Kingston, Edmonton and Niagara Falls regions.
  • Edmonton, Alberta – Opening Fall 2022

I wonder if it'll be mall-based or a standalone box store?
 

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