At the risk of being black-listed by developers in the real estate industry, I’m going to tell you what I think about the “special broker’s preview” that took place on Tuesday at Sync Condos.

It was a freaking joke, and I can’t believe I expected anything different…

I came.  I saw.  I left.

I was in-and-out in under ten minutes.

And the only reason I stayed so long was because I was frantically jotting down notes for my blog.

Why, oh why, did I think that this time around would be different?

The last time I went to the “launch” for one of Streetcar Developments’ projects, I was quietly informed that the developer’s family and friends had bought up all the lowest-priced units before they were even offered for sale.

There were 54 units for sale at 2Gladstone, and the lowest-priced unit was $229,000.  When I showed up at the launch, I was told that the lowest-priced unit was actually $249,000 and not $229,000 (whoopsie!  ‘honest’ mistake by the developer…) and that unfortunately, that unit wasn’t available anymore.  That’s right – there was only one unit at $249,000.

In actual fact, everything under $300,000 was sold before the project was ever launched.

I just didn’t understand how they expected us to pay $550 per square foot for pre-construction at 2Gladstone when you could buy an existing resale condo for the same price (or less!) at the building next door.

On Tuesday, I went to the launch at Sync Condos and as I entered through the front door, I was asked, “Hello….do you have an appointment?”

I thought, “Oh no, not again!”

Luckily, appointments were not needed, and that was just a clever way of finding out who the serious buyers were when they walked through the door.

I handed over a business card so I could get a price list and a copy of the floor plans, and I instantly had two salespeople buzzing around me like flies on….well…

I filled out their “Agent Registration Form” with my name, phone number, and then “—–” next to the other twenty fields.

I took out my pen, my calculator, and took a deep breath, and then flipped over the cover page to the price list.

Guess what?

There were only thirty-six units available for sale.

THIRTY SIX!

The building has 98 units, which apparently start at $179,000, but on the “first day” of sales at the “pre-sale,” they had only thirty-six units for sale.  Oh – and they started at $239,900.

I had a couple salespeople buzzing around and I without making eye contact or offering my name, I asked, “Where are the $179,000 units that have been advertised on billboards all over the city?”

The young lady, who probably had as many as four months in the real estate industry under her belt, replied, “That one actually sold, like, a while back.  A lot of those units were never actually for sale.”

So I quietly asked, “Oh, I see….did the developer’s family buy up all the cheap units again?”

And astoundingly she said with a smile, “Yuh-huh!”

That’s when another, slightly more experienced salesperson flew over leaving a trail of dust behind her and interjected, “Actually, they sold to the developer’s family, friends; employees of the company, other interested parties, a few select groups, etc.”

Right.  So once again, another Streetcar Developments project has launched with none of the lowest-priced units actually available for sale.

Hey – does anybody know what “False Advertising” means?

But let’s talk price, for a moment; but only for a moment because I just had some wicked chicken fajitas for dinner and I want to keep it in my stomach…

The $239,900 unit is a mere 457 square feet.

Or, if you are a numbers person, let’s call it $525/sqft.

That’s right – in pre-construction, this unit selling for $525 per square foot, so that the eventual owner can live a half-block from the Don Valley Parkway.

Oh, and that doesn’t include parking and locker.

If we added in parking at $28,000 and locker at $5,000, this unit would actually be just under $600 per square foot.

SIX HUNDRED!

Oh Yeah!

Wait, hold on a second…..lemme find somebody that can do that better than I can…

Thanks Russell.  You buy my jewelry…

So include parking, and we’re looking at close to $600/sqft.

But you can’t buy a parking space unless your unit costs $300,000 or more…

Moving on…

My favorite part of the “launch” was the model suite, which was pure marketing genius.

The suite was located in the sales centre that happened to have 16-foot-ceilings, thus it really wasn’t a “scale model” since the units at Sync Condos are going to have 9-foot-ceilings.  It sure gave the “model suite” a spacious feeling!

Then there were the upgrades, which were numerous!  The corian countertops in the kitchen would probably be a $3,000 – $4,000 upgrade over the base cost.  But of course, you don’t find that out until about ten months before you’re about to take possession; that’s when they call you in to “pick your finishes.”  Better bring your cheque-book…

The stainless-steel appliances are included in the base price, but of course, there’s the bait-and-switch of stainless-steel appliance packages that cost $2,000, and those that cost $6,000.

But as luck would have it, I was probably the only cynic in the entire room!

Most people busied-about and enjoyed the smoked salmon lemon parsley croissants that were laid out next to the architects rendering of the building.

I didn’t touch the port chicken liver mousse as I was too busy trying to figure out why anybody would pay for the “private rooftop terraces.”

These “private” terraces aren’t adjacent to your suite, by the way.  You take the elevator up to the roof to access what you “own.”

No, they are on the roof, and basically you have rows and rows of doors that open up to a wooden cell, and nothing more.  The walls are eight-feet high, and they separate each unit, er, “private terrace” from the next.  So what the heck do you do up there anyways?  Other than store your winter tires…

I hadn’t even looked at the branded figs with blue cheese on puff pastry before I was tackled by another sales agent.

“Finding everything you’re looking for?” she asked.  “Yes, I can find the exit just fine, thank you.”

I was outta there.

I felt like I was in a real life version of The Emperor’s New Clothes.

Everybody in that room was excited to spend $525 per square foot for a condo that hasn’t been built, and won’t be available to them for 3-5 years, when they could buy a resale condo in a better area for much, much less.  I wondered why I was the only person that saw what was happening!!

I’ve used this example before, but I’m going to use it again.

You are going to buy an apple to eat.  You have two options:
1) Buy an apple now, and eat it now.  The price is $1.00.
2) Buy seeds for an apple tree.  Grow the tree, pick the apple, and eat it.  The price is $1.50.

Doesn’t the first option make more sense?

At Streetcar Development’s last project, Edge Lofts, prices are hovering around $500 per square foot.

So why the #$%* is somebody going to pay $525/sqft for Sync Condos so they can take possession in 3-5 years?

Sorry.  I’m just frustrated.

There is no more money to be made in pre-construction in Toronto.

And I will go up against ANYBODY that tells me differently.

Don’t even get me started on The Thompson Residences in King West.

That’s a topic for another day…