Has there been a condominium in Toronto, past, present, or future, that’s received as much hype and fanfare as the modestly-named One Bloor?
We can debate the merits of their “Spring 2016” completion date and whether that’s actually going to happen, but look up to the sky from Yonge & Bloor right now and you will certainly acknowledge that this once-fateful project is nearing completion.
Assignment sales are starting to show up on MLS, and the prices are absolutely, positively, insane.
We’re all entitled to our own opinions, but nobody is going to convince me that prices at One Bloor are justified…
There’s a reason I chose that photo of “One Bloor.”
It’s not because the building isn’t finished yet, and thus an artist’s rendering looks better.
It’s not because of the sexy upward-trajectory camera angle.
And it’s not because I love one photo with eighteen different shades of blue.
It’s because of the birds, plain and simple.
If you’re a film buff, then quickly – tell me which Hollywood director is famous (or infamous…) for including copious amounts of birds in his movies?
Think action movies.
Think about doves.
Think about a movie where, for absolutely no reason, and in a completely unrealistic setting, there happen to be doves calmly walking around in the background when the main character is doing something unspectacular, like walking slowly to music.
Anybody?
John Woo.
Be honest, and tell me if you knew the answer before I posted it.
But as soon as I saw that stupid artist’s rendering of One Bloor, I immediately said aloud, “Who the hell drew this, John Woo?”
Now, shall we vote on the “Greatest John Woo Dove Scene” of all time?
In my mind, it has to be John Travolta in “Face/Off” from 1997:
How did those doves get into the church anyways?
And why are they so calm?
Anyways, while Travolta is gracefully dancing his way through beautiful, pure, white doves, the birds in the photo of One Bloor are more than likely fat, hot-dog-bun-eating, Toronto pigeons, and are about to dance a gooey-white mess on the heads of those in the “All-Ways Crossing” at the intersection of Yonge & Bloor.
On Thursday night, I was showing condos at Yonge & Bloor – standard issue; 8 Park Road, 35 Hayden, 85 Bloor, etc. Not once, at any point, did I ever consider even discussing One Bloor with my clients.
Not once.
And they didn’t bring it up either.
Wait. Before I go any further, perhaps a refresher on the debacle-turned-apparent-success that is One Bloor?
This project (then going by the more impressive name, “Number One Bloor”) was first announced almost nine-years-ago in early 2007, and was going to be built by a company called Bazis International, out of the Middle East.
The tower was set for 80-storeys, but the project stalled, rumours started, and eventually the developer lopped a good 15-storeys off the project to cut down on construction costs.
Rumour has it that one or more of the principals lost their proverbial shirts in the 2008 financial crisis, and the developers began to look for an exit strategy.
In 2009, Great Gulf Homes bought the project, and proposed a 91-storey tower, but eventually reduced it to 65-storeys.
Investors flocked to the landmark project, which is comprised primarily of 1-bedroom units, and the tower was increased to 70-75 storeys (still can’t be 100% unless I physically count them).
So this project went from hero, to zero, and back to hero, in a number of years.
Here we are, standing on the doorway to 2016, some nine years after this began, and the end is in sight. “End” sounds bad; how about “The new beginning is in sight?”
That’s the story in a nutshell.
And with completion just around the corner, these units are starting to come on MLS as assignments, and the real estate community is starting to debate the merits of One Bloor.
You all know how I feel about buying pre-construction condos. I don’t think we need to delve into that.
And you all know how I feel about buying “assignments” of pre-construction condo contracts, which is basically the same thing, just dumber, since you’re paying the closing costs of somebody who simply put down a deposit 2-3 years ago.
So would it also surprise you to know that I’m not the city’s biggest fan of “record-setting” buildings, sold with flash and pizzazz, that trade on image and some false sense of brand value?
Take a gander at this beauty of a listing:
$539,888.
For how many square feet?
Wait for it……………530.
That’s $1,019 per square foot, with no parking, and no locker.
Is that a whole other level of crazy?
Or am I just crazy? Maybe I’m just out of touch?
Maybe real estate, in this red-hot market, is now “cool” and “fun” and dropping DOUBLE what you could pay for across the street is justified, if you want to be part of the real estate “in-crowd.”
The listing reads, “Don’t Miss Chance To Call 1 Bloor Your New Home.”
Ignore the laughable grammar, and look at what they’re selling here.
“This Suite Is Perfect For Anybody Looking To Live In One Of Toronto’s Most Anticipated New Buildings.”
Is it really?
I mean two things there 1) is it perfect for somebody, 2) is it one of Toronto’s most anticipated new buildings?
Because personally, I’m not “anticipating” the completion of the building. While I am “anticipating” the end of insane traffic at that intersection, caused by this epic construction process, I wouldn’t say I give the slightest you-know-what about an over-priced condominium being finished.
Maybe there’s just nothing else for the listing agent to market here?
Maybe he or she is doing the right thing by pandering to the “real estate is cool” crowd, and hoping some moron pays $1,000/sqft for a 1-bed, 1-bath condo?
Maybe I’m just totally out of touch. Maybe people will think you’re cool if you own at One Bloor, in the same way that the “big kids” would think I was cool in 1986 if I smoked a cigarette in the school yard, or stole from the hard-working corner-store owner.
Maybe today’s market is about spending more! Maybe the more you spend, the more successful you are, so the more a unit costs, the better it is to help you justify your level of success…..and coolness!
Okay, so I’ll discuss this theory with my therapist next week, and perhaps delve into some childhood issues. But as it stands right now, the concept of paying, say, even $700/sqft for this unit, is rather unappealing.
Take a look at this competing listing down the street:
Here we have a 685 square foot unit, priced at $569 per square foot, also with no parking, and no locker (I would also add based on the fact that it’s vacant and on the market for 68 days, the eventual sale price would be closer to $550/sqft). The maintenance fees are dirt-cheap, and they include all the utilities – something that is incredibly rare in today’s market.
This is literally steps from One Bloor.
I know these are apples and oranges; I’ll be the first to admit it.
85 Bloor Street was built in 2005, and in today’s market, that’s getting “old.”
85 Bloor Street does not have the flash, glitz, and glamour of One Bloor. I get that.
But what are we really paying for when it comes to the purchase of real estate?
Are we buying a home?
Are we making an investment?
I often use the example of a Louis Vuitton hand-bag.
I know women like these things, but it’s not a “real” value.
You pay, what – $4,000 for that bag? Four THOUSAND dollars?
You could pay $400 for a Michael Kors bag. Or maybe $100 for a really nice one from Joe Fresh.
Or, I suppose if you were so inclined, you could pay five cents for a plastic bag from No Frills, and carry your keys, wallet, and makeup around in it.
But can we agree that when you pay $4,000 for that Louis Vuitton bag, you’re sinking money into something that you’ll never get your money out of?
Sure, we can hammer away at this all day.
“Why do people spend money on vacations when they end?”
I know. My analogy has the potential to go right off the rails here.
But I don’t quite understand the concept of “cool real estate” and somehow justifying paying $1,000 per square foot for a crappy 1-bed, 1-bath condo because it’s in a flashy, new, “anticipated” building.
It should also be mentioned, that whoever closes this deal, be it the current “owner” or the potential assignee, is likely going to pay $30,000 in closing costs, so it’s not just $1,019 per square foot, it’s $1,076 per square foot.
And then we have the potential for a two-year occupancy period, at $1,000 per month, but I won’t get into all that…
So is buying a “sexy, hot, cool, flashy” condo at a massively-inflated price the same thing as buying a nice handbag that you really like? Or buying a Lexus instead of a Toyota? Or buying “Cheerios” instead of the cheaper “Wheat O’s” knock-off?
Or do we put real estate in another category because it’s an investment? Or because it’s so much more expensive?
If these units, priced at $1,000 per square foot, start to trade at $1,050 per square foot, then $1,100 per square foot, then $1,200 per square foot – then I’ll be dead wrong about my opinion that this project is massively over-valued for no good reason.
But as I see it now, there are scores of investors trying to get out of this project with a profit, and that represents a $1,000 per square foot valuation to them, at the current moment.
I would never, ever, under any circumstances, put a buyer in a 530 square foot, 1-bed, 1-bath, for $539,888, with no parking, no locker, and no track record on management, finances, and operations in the building, not to mention ongoing construction for the foreseeable future.
And I don’t actually know anybody that “wants to call One Bloor home,” or doesn’t want to “miss their chance” to get into such an “anticipated building” or a “Toronto landmark” that’s the “first of its kind.”
But hey, “ripped jeans” sell for more than jeans that are fully intact.
So in the end, what the hell do I know…
Ed
at 8:51 am
“Maybe today’s market is about spending more! Maybe the more you spend, the more successful you are, so the more a unit costs, the better it is to help you justify your level of success…..and coolness!”-David
It works for cars, clothing, handbags, Apple products. So why not condos?
FrankyB
at 10:04 am
I guess the critical question is whether being east of Yonge (albeit on the south-east corner) qualifies as Yorkville?
Marina
at 10:11 am
There is always someone who can justify the purchase. When I worked in Japan, every woman had an LV wallet, and they felt they had to because everyone else had them. Real estate is too expensive dive there, so fashion takes on higher importance.
A friend drives for work 3 hours every day. So he drives an Audi, and loves it. He justifies it as cost per trip vs. enjoyment per trip.
I’m sure someone will enjoy this condo $1000 per sq, foot worth. Someone. But at that point it is not about investment or market value, it’s about self gratification.
Personally I’ll stick to my occasional fancy hotel room when I travel, rather than plonk down an extra 200k for an address. And I’ll be waiting for when these somebody’s run out and the prices for some of these places Trump down to more reasonable levels.
Boris
at 11:00 am
The Audi analogy is a little odd – to be fair, unless its an RS8 – an Audi is a pretty normal car, especially in the GTA. I hear what you are saying. But there are tangible things better about an Audi than a VW or a Honda. Not just glitz and glamour and what not. I do get what are you trying to say though.
Marina
at 11:44 am
I have a girlfriend who can walk you through all the tangible ways that a Hermes bag is superior to a mall Michael Kora bag. Seriously! She is militant about that stuff.
Cars are kind of the same. If you know your stuff, yeah Audi is tangibly better than a Honda, but for most people Audi is just a fancier name. Or BMW, or Porsche, or Tesla, etc.
For the record I drive a Honda Fit, but in my heart it is a TT Roadster 🙂
Libertarian
at 11:21 am
Question – David states that the One Bloor unit does NOT come with a locker, but the listing indicates: “Locker: Owned.” Doesn’t that mean that the unit does come with a locker?
Not that it makes much of a difference to the bottom line. I agree that the building is over-priced considering the value available nearby. But the way real estate in this city is going these days, I’m guessing that there will be buyers who pay that price.
There is always a debate on this blog about cheerleaders/bulls vs. bears. I’m sure that the cheerleaders will argue that the building will sell at those prices, and they’ll provide evidence to back that up, such as international investors, population growth, Toronto is a world-class city, etc. But I think that it’ll sell because everyone has drank the kool-aid and has a herd mentality.
Libertarian
at 11:22 am
Forgot to write….essentially, I agree with Ed’s comment.
condodweller
at 1:34 pm
I was wondering about that too. Same for parking; it says underground which I would take to mean it has one but since the remarks don’t mention it, it doesn’t have one? I went to the presentation centre about 2 years ago and I was somewhat shocked that their parking spaces were going for $50k IIRC (might have been $40k which is still the highest I have seen). I remember the layouts were unremarkable. The only thing I liked were the amenities, but we all know how those are going to turn out.
The location is amazing, you can’t get much more central with direct access to both subway lines but the premium is a bit rich. I also like the fact one can get to PATH through the subway lines without going outside and not require a jacket all year around to go to work.
Fro Jo
at 1:06 pm
John Woo dove scenes! Sir, I salute you.
Appraiser
at 4:48 pm
List prices (especially for assignments) mean very little (read nothing) to me as an appraiser.
Let’s see what the units in the building actually sell for. Then we’ll have an idea about market value for One Bloor.
Wut
at 1:51 am
“But can we agree that when you pay $4,000 for that Louis Vuitton bag, you’re sinking money into something that you’ll never get your money out of?”
Actually, LV or Chanel or Hermes for example hold their value quite well and there is a large second hand market for them. They will also last longer than the purchaser, the quality of the materials and workmanship are second to none.
I’d rather have the Chanel bag than 4 square feet at 1 bloor. Gift that to the wife and it’s blowjobs for a month.
nomaha
at 12:57 pm
Classy! Ugh.
Noel
at 10:09 pm
You are dead on David. I’d rather buy a cubic volume of space for a lower price. Fact is you spend most of your time in the condo not loitering in the lobby or the gym or whatever other amenities they have. As for central, the only difference between Wells & Yonge and Bloor & Yonge is Wells is closer to downtown.
Ego is the only thing that would make someone buy these overpriced condos as 1 Bloor W or whatever it’s called (One Bloor West? Un Bloor West? etc). Save a few hundred thousand scheckels and buy an older condo, then spend a 3rd of what you saved making your unit look like a palace.
BillyO
at 10:35 am
David, what do you make of units at Aura averaging $800/psf resale? While $1K psf seems steep, is it totally out of the question? Once registered, wouldn’t $1K psf be about the average for Yorkville (and yes, I understand this is not Yorkville per se, but this is a landmark building in TO – well until Mizrahi’s 1Bloor West comes to fruition).
H. Marshall
at 11:34 pm
I would be interested in your opinion of Yorkville Plaza which is full of tiny small one bedrooms at over $1000 a square foot.
That too is a lot of money to live in a construction site.
Catalyst
at 11:30 pm
I guess I know one agent I won’t be asking to list my unit in One Bloor…
The building is pretty much sold out, and pre-construction a few years ago was selling at $850+ per square foot so 1K per square foot is not unreasonable. Rumour is Nordstrom will be in their retail plaza, and possibly the Apple store. It isn’t for everyone, but for people with money it isn’t a stretch to pay this amount for a landmark condo.
Kinka
at 10:31 pm
People with money don’t live in 500 sqft 1 bdrm condos that cost 540k…
Hammertime
at 3:11 pm
+1 Voice of reason.
This unit was likely bought for a flip and I don’t think the owner is going to make out like a bandit. It would make an ideal rental if the prices come back down to earth. Can’t beat the location…
Max
at 7:18 pm
True, but they invest to rent.
Kyle
at 10:32 am
One Bloor West just stole all the “landmarkiness” away from this project. If One Bloor West was Michael Jackson, One Bloor East would be like Tito.
http://www.theglobeandmail.com/news/toronto/first-look-new-one-bloor-tower-would-be-one-of-torontos-tallest-most-expensive/article23409281/
Even in the artist rendering you can see One Bloor East shown in One Bloor West’s shadow. Sadly for One Bloor Easters they will literally (as the sun moves West after mid-day) and figuratively be living in One Bloor West’s shadow
Master d'bater
at 8:36 am
I work in this condo
The units are so crap. Wavy walls, cheap floor. Flimsy floppy faucets
Mdf Baseboard and trim I wouldn’t even put in my basement
Toilets don’t flush peee!!
Let alone that number 2 Christmas special.
Tubs are smaller than average
When it comes to interior the only thing this place has in terms of $/value
Is glass shower doors over tub
There is literally no difference in building material and quality from the rest of condos in Toronto so if you want to drop and extra 100-200k just for the location be my guest but I would rather save that extra 100-200k and buy a Benz
Or a little cottage up north
Tommy
at 3:32 pm
The futuristic interior design already looks dated on this brand new building. Pics I’ve seen of units and common areas make it look like the Jetson’s world – wavy pocketed walls, round chairs. It just feels like we already tried this in the 80s and moved on quickly. This building is not something I’d want to live in brand new and it’ll be hideous when it gets old.
Another point – very few amenities for such a large building, and condo fees don’t include very much (e.g. heat, a/c, cable) like the all-inclusive older condos.
Christina
at 11:06 pm
I live at One Bloor and it is absolutely the worst condo to live in. Do not move here if you are considering a new place to own/rent!! I moved here from Calgary looking to make a new home and since then have experienced being lied to about the availability of numerous amenities, being locked from using my balcony for 6 months as it is not yet considered “safe” by the city, hearing about bed bugs on a neighbouring floor, numerous elevator disruptions (waiting 50 min at a time to get to work), a substantial & infuriating amount of 2am false fire alarms and most recently battling with warranty to get a fridge/freezer repaired – it has been 25 days since it has been completely de-thawed and no compensation has been awarded to help with the monetary costs that come with that.