This is the only pre-construction project I have liked so far in 2009, and I was jet-set on buying a condo here.

On Saturday, I went to the project launch, and I left empty-handed.

Here are the details of my excruciatingly frustrating experience…

Having recently sold my condo at Rezen (details on this to follow in a blog post this week or next), I was one-hundred percent ready to put a deposit down on another pre-construction condominium.

I have been searching the marketplace throughout 2009 for the next great project, but until 2Gladstone came along, I hadn’t found anything worth investing in.

I have my criteria, which is a whole other blog post altogether, but let’s just say that the projects, neighborhoods, and prices I’ve seen so far haven’t been what I’m looking for.

How did I first hear about 2Gladstone?  Well as luck would have it, I received a flyer in the mail!  Who says that grass-roots marketing doesn’t work anymore?

What first piqued my interest was the neighborhood, which I am very familiar with through my social wanderings in the last few years as a 20’s-something young man, but I also bought in at the ground level four years ago at the West Side Lofts down the street.

2Gladstone is going to be a boutique condo directly across from the famous Gladstone Hotel, which for those of you that don’t know, is a Toronto landmark first built in 1889.

The Gladstone Hotel is steps from The Drake Hotel, and is situated in one of the hottest locations for Toronto nightlife.

The boundary of this thriving locale used to be Dufferin Street, but in the past few years, bars such as Stone’s Place, Cadillac Lounge, and The Rhino have become just as frequented as The Drake Hotel and The Social, which sit on the “safer” side of Dufferin.

I contracted to purchase a condominium at West Side Lofts about four years ago, and with any luck, they’ll be finished in June of next year.  But the large projects such as West Side Lofts and The Bohemian Embassy simply don’t compare to 2Gladstone.

2Gladstone is going to be an intimate 8-storey, 54-unit building which will be the only one of its kind in the area.

With Bohemian and West Side numbering in the 300-400 unit range, there is something special about a boutique condo like the 54-unit building at 2Gladstone.  Also consider that the project should only take two years to complete.  An eight-storey condo will surely encounter fewer setbacks, and take far less time to build than something like The Bohemian or West Side Lofts.

The building itself will have almost zero amenities, which is great if you’re looking for low maintenance fees and a hassle-free investment.  This is a stark contrast to West Side Lofts, which has a rooftop pool with a rock-garden waterfall.

Since I planned on keeping my unit at West Side Lofts to rent out for several years, the amenities suit my needs (via those of my tenants’), and since I’d like to flip the unit at 2Gladstone, I think the low maintenance fees will appeal to a potential buyer.

But more than anything, I think 2Gladstone has incredible curb appeal and it fits in with the street itself.  I’m a huge fan of this design, and I can’t say enough about the importance of the “boutique style” and the advantages to only having 8-storeys and 54-units.

With location as my first criteria having been satisfied, and the actual project being exactly what I’m looking for, I began to examine the developer.

Streetcar Developments is not an elite developer, but they don’t have a list of strikes against them either.

They are not one of the “big boys” like Tridel or Concord, but they aren’t a newbie to the Toronto real estate market by any stretch.

They have completed some fantastic projects in the past few years, all of which get an A+ rating from me.  The only issue – the projects are always delayed.  Don’t get me wrong, I’m aware that every single project in the history of real estate has been delayed to some extent, but having seen what happened with their “Corktown District,” I was a little weary to say the least.

Streetcar Developments is currently building THREE condominiums on King Street, all on the same city block.  The addresses are 549 King Street, 569 King Street, and 52 Sumach Street.  These buildings will be five, six, and six stories in height respectively, and from the floor plans to the location – I like the projects.

But what I don’t like are the 2-3 year delays associated with them.  I remember first seeing the “leftovers” on MLS three summers ago with a quoted possession date of Summer, 2008.  The situation back then raised the question, “Who the hell is Streetcar Developments,” and colleagues of mine actually thought that the name of the building was “Streetcar Lofts.”

Nevertheless, Streetcar Developments brought us “The Vinegar Lofts” at 19 River Street which is an incredible (albeit overpriced) hard loft building, as well as “Edge Lofts” at 625 Queen Street East. 

They also completed a small 6-storey, 26-unit building at 952 Kingston Road, as well as a very cool 4-storey, 12-unit building at 747 Queen Street East called “Riverside Lofts.”  If you’ve ever been to a restaurant called “PICNIC” in Leslieville – the restaurant is on the main floor of this condominium.

Despite the setbacks with Corktown District, I’m very impressed with the projects that Streetcar Developments have completed.  And more to the point, they seem to specialize in boutique condos as all of their projects have been smaller in scale.  Surely they’ve spent the last few years riding the learning curve to the top, no?

I gave a “pass” to the developer, and then I began to look at the price.

But unfortunately, all I had to work with was the one price quoted on the flyer: $229,000 for a 549 square foot, 1-bedroom condo.  The website for 2Gladstone offered zero help, as they want you to attend the launch for prices AND for floor plans, so I had nothing more to go on than the $417 per square foot price of the entry level unit.  But that was enough for me, as I think these units have $500/sqft potential down the line.

And it’s safe to say that on the resale market right now, you couldn’t find a similar deal.  You couldn’t get a brand new condo in a boutique building with the finishes of those at 2Gladstone for $417/sqft.

I have always maintained that in order for pre-construction investing to make sense, the very first criteria necessary is for the prices to be well below the current resale values of neighboring properties.  You have to be given some sort of “incentive” to buy in a building that hasn’t been constructed yet!  (more on this in Wednesday’s post).

I liked the location, the project, and the prices.  The developer had a history of building a fantastic product (even with a few delays along the way), and I had no qualms about putting down 10% of $229K for two years when I value this unit at about $275,000 today, and potentially more in two years.

So with my decision made, I called the sales office for 2Gladstone and spoke to a salesperson named “Sadie” who informed me that the official launch was on Saturday, October 3rd.  She told me that she could “schedule” me in for a 5PM “appointment,” and I told her that I wanted first crack at the project.  She was kind, and professional, and she told me that they had a priority-booking system throughout both Saturday and Sunday and that the schedule was full up until 5PM on Saturday.

I asked her when they started on Saturday and she told me it was 12PM, but she reiterated that they were “full” and they wouldn’t be able to see me.

So, on Saturday of this past weekend, I showed up at 12PM anyways, because I’ll be damned if I’m going to play by the rules…

I arrived at the sales office at about 11:45AM on Saturday with my friend and client, Greg, and I went up to the sharp-dressed man at the front door who wore a suit, had a name-tag, and held a clipboard.

I already knew how this was going to end…

(TO BE CONTINUED)