A couple of weeks ago, I posted a video about the new Freed Developments project underway at 150 and 155 Redpath Avenue in the Yonge & Eglinton area.
That was a classic example of a true “land assembly,” and if you look further, you’ll see even more land assemblies on surrounding streets, as Yonge & Eglinton is undergoing a rapid transformation.
Let’s look at another land assembly today, but along with the video, let’s look at the prices paid for the properties…
Here’s the video:
You’ve seen the video, and you’ve virtually walked that block, but let’s take a look at the map just to hammer home the location of this land assembly:
There you see the two houses on Redpath (#71, 73), the fourteen houses on Soudan (#174 through #200), and the box above those represents the apartment building at 18 Brownlow Avenue.
It’s incredible, when you think about it.
Somebody had the foresight, the strategy, the risk tolerance, and the money, to slowly buy up sixteen homes, and one large apartment building.
But how “slowly?”
And how much money?
You know that I can’t disclose sale prices due to TREB and RECO rules – the ones the public loves so very much…
But I can disclose the prices of the houses, on the whole, without disclosing which price was for which house.
Here are the sale dates (closing dates, not agreement dates), and corresponding prices of fifteen of those sixteen homes on Redpath Avenue and Soudan Avenue:
1/4/2014 – $1,300,000
1/8/2014 – $980,000
1/8/2014 – $1,275,000
1/10/2014 – $1,100,000
3/11/2014 – $1,125,000
4/4/2014 – $1,128,000
4/11/2014 – $1,600,000
6/10/2014 – $1,295,000
7/2/2014 – $1,188,000
7/30/2014 – $1,000,000
8/1/2014 – $1,125,000
8/27/2014 – $1,000,000
9/9/2014 – $1,150,000
10/7/2014 – $1,000,000
5/1/2015 – $1,800,000
Did you notice how I said “fifteen” houses, and not sixteen?
One of those sixteen homes still shows as being owned by an individual in both Land Registry and Public Records.
Is it possible there’s a “holdout” here?
It’s very possible that there were several holdouts. How else do you explain the last sale – $1,800,000, for a house that’s probably “worth” $950,000 on its own?
$1.6 Million for a semi-detached house? It looks like some pretty big premiums were paid here!
All told, the “assembler” in this case paid $18,066,000 for these fifteen houses. Not bad for all that land!
As for the apartment building at 18 Brownlow, it hasn’t sold, according to Land Registry, but it’s assessed for taxes at $29,511,000 for 2016.
We can speculate like crazy as to what is going on here.
Maybe the project is a joint venture between the owner of the sixteen houses and the owner of the apartment building at 18 Brownlow. Or maybe there’s a conditional agreement in place, who knows.
Judging from the sale dates of all those houses – given fourteen of the fifteen closed in 2014, I’m going to assume there were a lot of conditional sales. In fact, land assemblies are often done on a conditional basis. The assembler will throw out a massive number, say, 50% over fair market value, and convince the owner to sell conditional on the assembly of the other homes.
My guess, given all those 2014 closing dates, is that the assembly was pulled off in 2013, and the assembler allowed for very flexible closing dates.
If I were a betting man, I’d wager that later this year, we’ll see this project hit the market.
It’s open season in the Yonge & Eglinton area right now, and no building, or house, is safe.
Next week, I’ll show you just how much development is going on in the area. It’s absolutely astounding, and the density at Yonge/Eg is going to change more than any other area in the city of Toronto over the next five years.