The Mercury Block II | Hodgson Schilf Evans

[CaptainBL]

Mixed feelings.

Replacing these with what we are doing is also going to make the inner city increasingly unaffordable? And push more and more towards the edges of the city.

I love the positive impact these newer builds have on the area, but honestly, I'd rather see all of the houses and parking lots disappear before the walk-ups.

As a condition of financing for removal of this existing building and its affordable units, the new building will have affordable units (a higher number compared to the existing walk-up). So no, there is no loss of affordability here in fact there is an increase.

My understanding is that this project is a priority. I don't think you'll see it sitting vacant for long.

My understanding is that this project is moving forward as number one in their priority que and the only reason it hasnt gone beyond demo right now is financing, which I believe they are working through and hope to resolve soon.

Do you know what the rents are for The Mercury? Any incentives? If so, please share.

I have been told that the lease-up is performing well and rates are $1,500 to $3,000 depending on unit size. Rates are pretty comparable to The Citizen, which is also leasing well.

 

[TAS]

I have been told that the lease-up is performing well and rates are $1,500 to $3,000 depending on unit size. Rates are pretty comparable to The Citizen, which is also leasing well.

Thanks for info.

The smallest unit is 365 sq ft so $1,500 seems fairly high especially if there are any other costs such as utilities/parking etc.

 

[IanO]

No way 365 is $1500 as that is $4.10/sqft, even adjusting for size/location or about what Toronto or Vancouver commands.

Top end of the market in Edmonton for new product is $2.50-$2.75/sqft. which puts that at $1000 or so.

 

[Avenuer]

As a condition of financing for removal of this existing building and its affordable units, the new building will have affordable units (a higher number compared to the existing walk-up). So no, there is no loss of affordability here in fact there is an increase.

Are they getting financing through the CMHC MLI Select program? That would require the affordable units, if so, otherewise I am not sure which mortgage lender would require a certain % of affordable units in the building.

 

[CaptainBL]

Thanks for info.

The smallest unit is 365 sq ft so $1,500 seems fairly high especially if there are any other costs such as utilities/parking etc.

No way 365 is $1500 as that is $4.10/sqft, even adjusting for size/location or about what Toronto or Vancouver commands.

Top end of the market in Edmonton for new product is $2.50-$2.75/sqft. which puts that at $1000 or so.

The average $ per sq. ft. across the entire build is projecting to be around $3.0 per sq. ft. and the handful of smaller units will have a higher rate on a sq. ft. basis but on a monthly basis they are deemed affordable by the CMHC financing in place and inline with the downtown market....so, yes way.

 

[CaptainBL]

Are they getting financing through the CMHC MLI Select program? That would require the affordable units, if so, otherewise I am not sure which mortgage lender would require a certain % of affordable units in the building.

Virtually no multi-family projects qualify under conventional financing anymore. All developers I have seen are going CMHC and if you arent, I have no idea why you wouldnt.

 

[IanO]

No way 365 is $1500 as that is $4.10/sqft, even adjusting for size/location or about what Toronto or Vancouver commands.

Top end of the market in Edmonton for new product is $2.50-$2.75/sqft. which puts that at $1000 or so.

The average $ per sq. ft. across the entire build is projecting to be around $3.0 per sq. ft. and the handful of smaller units will have a higher rate on a sq. ft. basis but on a monthly basis they are deemed affordable by the CMHC financing in place and inline with the downtown market....so, yes way.

That's nuts given the market comparables and options out there for considerably less.

 

[Avenuer]

Virtually no multi-family projects qualify under conventional financing anymore. All developers I have seen are going CMHC and if you arent, I have no idea why you wouldnt.

What I've seen as well since their required 'affordable' rents are really not much different then the average market rent in Edmonton right now. You save much more with their lower interest rates compared to how much you're giving up by not renting at market.

 

[Guy 1]

MLI is the saving grace for these projects in Edmonton. Median renter income is very high, meaning the affordability threshold is proportionately high. As a result, As avenuer said, "affordable" rates per cmhc are not much below market in Edmonton. You can hit 100 pts on MLI pretty easily in Edmonton without much of a hit to the revenue projections. Pretty much all upside.

 

[thommyjo]

No way 365 is $1500 as that is $4.10/sqft, even adjusting for size/location or about what Toronto or Vancouver commands.

Top end of the market in Edmonton for new product is $2.50-$2.75/sqft. which puts that at $1000 or so.


That's nuts given the market comparables and options out there for considerably less.

A lot of units under 800sqft are going for mid 2000s. Citizen, Macleran, etc. 2500 for a 2bdrm in these new builds isn’t uncommon. Wouldn’t that be over $3/sqft?

 

[IanO]

They certainly have pushed up in the least two years, but what the market will bear will be interesting to see.

 

[Filip.Nowak]

Straight into shoring?

 

[MacLac]

Any contractor signage? Is it Synergy?

 

[Canadian 001]

Shoring so soon that there is still backfilling from demolition ongoing

 

[RP14]

Any contractor signage? Is it Synergy?

Yes it is.