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Urban Development and Proposals Discussion

Glad to see that area getting some love. It's about time. Surprising that in a downturned economy, land that wouldn't be considered very desirable (near train tracks) is getting developed. I would have expected it the other way around.
 
1875 said:
the light store on that block has been having a clearance sale for a couple months, maybe its a go.
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It remains to be seen whether it will get developed in the short term. Application may get approved and then the project sits in limbo after the mandatory construction budget exercise. Except for purpose rentals, not much else is moving forward in the Beltline.
 
UrbanWarrior said:
That would be pretty awesome. If this goes ahead, we could see 4 towers on that intersection going up simultaneously. The only corner that doesn't have an active proposal is the SW corner, and it already has a substantial building on it.
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Crazy security in that building you speak of. Tiny lobby surrounded by bullet proof glass. It is a Telus building.
 
Habanero said:
Glad to see that area getting some love. It's about time. Surprising that in a downturned economy, land that wouldn't be considered very desirable (near train tracks) is getting developed. I would have expected it the other way around.
Click to expand...
Land development is about the delta, and the land price is lower right now, so it makes sense to wait on higher value projects if you can forgo the profit, if you think prices will turn. But you still need some cashflow, and there is demand, and your railside project could get squeezed out construction cost wise if you wait, so you go. Imagine developing 2 properties (all numbers made up) and you'll see why it makes sense to wait on your more expensive one if you have two options:
Property 1Property 2
LocationRail Adjacent 0.33 acreErlton 0.33 acre
Value Now$10 million/10 FAR Acre$20 million/10 FAR Acre
Value Now Developed$70 million (145,000 square feet)$100 million (145,000 square feet)
Value Future Developed (40% appreciation)$98 million$140 million
Loss from profit now from waiting (20% of land value to sale value delta)$12 million$16 million
Gain from waiting$28 million$40 million
 
In Bridgeland between Dominion and that clinic.

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