Buying a pre-construction condo in Toronto from a reputable developer is of extreme importance when investing your money. In some cases, a project run by a great condo developer will trump a lesser developer at a better location.
A bad developer in a great location with a great price and value can still make for a bad investment. Just consider the recent case of Beacon Condos where a developer ran away with investor funds. It’s stories like these that highlight just how important it is to double down on a developer you can trust when investing your money.
There are numerous examples of lesser developers in good locations that have turned out to be bad investments. Most reasons include failing to deliver on promises, using cheap building materials and cutting corners.
A great developer in a “bad” location with a great price, can, however, be a very good investment. Especially if there is a master plan in action or a developer with a lot of experience sees potential in an area.
There are countless examples throughout the City where a great developer has had huge success with “less than desirable” locations – and in some cases, have become the catalyst for huge neighbourhood growth.
Consider the following:
- Great Gulf Homes selling “The Hudson” at King & Spadina before it was a popular location – built using excellent finishes and amenities that remain highly sought after.
- Canderel with “College Park Condos” at Bay & College before it became one of the most popular communities in the City. Excellent build quality, forward-thinking amenities and value-adding ground floor retail all helped make this building
successful. The VP of Sales and Marketing has admitted that he was “terrified” of launching this project in this area because he wasn’t sure that buyers would believe his vision for the location.
- Daniels launching One Park West in Regent Park, a highly undesirable neighbourhood before they announced a huge 15-year master planned community.
- Great Gulf Homes with “PACE Condominiums”, the first major development on Jarvis Street which spurred on 5 other major developments along Jarvis Street within 3 years.
How do we determine who is a “good developer”?
Determining “who is a good developer” is very difficult. There is no central database that is capable of telling us who the best developers are, so we have to look at their history and track record. In most cases, a good developer will develop a solid reputation by creating high-quality, and innovative projects.
We consider the following when looking at the history and track record of a Toronto condo developer:
- What other projects has this developer built? How many have they built in Toronto?
- How long has the developer been around?
- How have they performed on the resale market?
- How have they performed on the rental market?
- Do their buildings include any “value add features”?
These are the major value adds that we look for are retail components that enhance value. Certain developers attract AAA tenants that enhance value, while others attract local Mom & Pop stores that can sometimes detract value.
Toronto condo developers with great reputations
Here are some examples of Toronto condo developers with excellent Track Records as well as some examples of their great work. (Developers listed Alphabetical Order):
- Bazis International (E Condos, Exhibit Residences)
- Canderel Residential (DNA 1, 2 & 3, College Park Condos, Aura)
- CentreCourt Developments (INDX, Karma, Peter Street Condominiums, Axis Condos)
- Cityzen Development Group (Absolute Towers, L Tower, Pier 27)
- Cresford Developments (CASA 1, 2 & 3, 1Thousand Bay, MYC)
- Daniels Corporation (Festival Tower, Cinema Tower, Arc Condos)
- Great Gulf Homes (One Bloor, The Hudson, PACE, Yonge + Rich)
- Lanterra (Murano, Burano, ICE, Treviso)
- Lifetime Developments (The Bond, Bisha, The Yorkville, Panda Condos)
- Menkes (Harbour Plaza Residences, Four Seasons Private Residences)
- Tridel (Ten York, Aqualina, SQ Condos)