U/C Sage Condos

[chriszealey]

You can find prices well below $700+3.1% at the Luxe. A quick search reports report rooms consistently priced at $613 for full term lease.

I didn't mean Luxe was $700+3.1%. As of right now, returning tenants pay a number of different prices. $613 is the average, but top floors are more expensive. New tenants pay $645 I believe. 3-room suites are more expensive than 4-room and shared rooms are much cheaper.
There's also a rumour that the prices will increase again next year (and I'm sure they will if other apartments charge more).
All in all, Sage looks nice compared to other apartments around, but I still think $700 is pretty expensive. They might not be including Hydro in that price either.

[HankRearden]

I'd like to add my 2 cents worth here. Luxe is a beautiful building, no boubt. They are renting 5-bedroom for September 2012 for $645/month. The $550 or $613 numbers previously posted were based on original tenants that took advantage of a great per construction incentive due to the building being completed mid-summer. My understanding is that they never even posted adds and had a huge waiting list to get into the building this year. I can confirm this as I've been watching the rental postings on both universities and have not seen any adds for Luxe. This leads me to believe they their strategy is to rent bellow market and be completely full really fast. Therefore, their rent may not be indicative of the true value of the units. Let's further assume that their rents for Sept 2013 will be higher. Likely something in the range of 3.1% higher, bringing a 5-bedroom unit to about $665/month.

In comparing Sage Condos to Luxe consider the following;
1) Sage Condos 5-bedroom units are about 2000sf, Luxe 5-bedroom units are only 1487sf.
2) Sage Condos units have 100sf+ private balconies (some have 350-600sf terraces), Luxe units do not have balconies.
3) Sage Condos units have in-suite laundry, Luxe units do not.
4) Sage Condos units have single unit HVAC systems, Luxe units do not.
5) Sage Condos has underground climate controlled parking, Luxe does not.
6) Sage Condos has commercial amenities, Luxe does not.
7) Sage Condos is closer to both universities

For Sept 2013 does it make sense that Sage Condos 5-bedroom units should rent for 5.3% more that Luxe 5-bedroom unis? I think that makes sense to me.

[mpd618]

For Sept 2013 does it make sense that Sage Condos 5-bedroom units should rent for 5.3% more that Luxe 5-bedroom unis? I think that makes sense to me.

I think you make a good comparison. Though there are many new units coming on the market, so I think all of the prices are going to have to come down. I think the main reason you can have prices of $600+ for a bedroom in a 5-bedroom unit is because demand for living in walking distance of the universities is very high, and supply hasn't caught up.

The Northdale rezoning is likely to happen next month. With the speed some companies around here can turn buildings out, there may yet be more developments completed by September 2013.

[HankRearden]

Thank you for the compliment. I hear what you are saying but demand to live near the universities will only increase over time as the schools grow, more amenities are available near campus, and the student population intensifies. As far as supply goes here are a few points to consider;

1) Northdale is currently under an interim control bylaw, freezing all development, for one year. The earliest council might lift this is July but don't expect that to happen due to appeals etc. It takes at least 8 months of planning & design, post interim control bylaw, to obtain building permits. It then takes at least 16 month to construct any project of any significant size. For this reason you would be looking at at least Sept 2014 for any new developments that are not already exempt from the interim control bylaw.

2) Actually bedroom density under the new OP is reduced by 40% which will slow the increase in supply.

3) A number of very large student developers have already left Waterloo or are finishing their last projects before they leave. Furthermore, lenders are very cognizant of the supply situation and won't finance the market into over supply.

For these reason I don't see much potential downward pressure on rents. Actually, at Sage Condos projected rents are about $1.75/sf/month which is lower than most new condos in uptown Waterloo, even though land near the universities is more expensive than uptown Waterloo.

[UrbanWaterloo]

Houses have been demolished...

May 6, 2012

[UrbanWaterloo]

Excavation has begun...

May 15, 2012

[UrbanWaterloo]

June 5, 2012

[UrbanWaterloo]

June 29, 2012

[The Comeback Kid]

Nice! I love seeing ICF (insulated concrete forms) in action. The efficiency they provide is great. Good design choice IN8!

[UrbanWaterloo]

July 11, 2012

[csgrad]

Just noticed an article on this condo in the FP: http://business.financialpost.com/20...r-crazy-stuff/

[RangersFan]

Wow didn't realize all the units were sold in 4 days, that is crazy stuff.

[UrbanWaterloo]

August 13, 2012

[Waterlooian4Life]

I recently heard that this project will have 3 phases. The first Phase is the smallest of the 3. The website says the Second phase will be released soon. I also have heard that one of the future phases will be the tallest building in Waterloo.

[UrbanWaterloo]

The crane's being constructed today!

August 23, 2012 - 10:45AM

[Waterlooian4Life]

Check out the Sage Condo's Website for their very exciting Sage II project! This is the kind of Development Waterloo Needs.

Located at 318 Spruce Street in Waterloo, Sage II is a 23 storey tower that will feature retail space at street level and office availability above before expanding to 20 floors of impeccable designed one and two bedroom condominium suites.

[Trogdor]

Cautiously optimistic for once. I like the prominence of the retail and that we're finally seeing a developer cater to something other than the 5-bedroom crowd.

[Lugnut]

Check out the Sage Condo's Website for their very exciting Sage II project! This is the kind of Development Waterloo Needs.

Good for this developer finally moving away from 5 bedroom units! Still targeting students and investors it seems, but at least this project gives the opportunity to non students.

The retail/office component is great too.

Guess Spruce st is really going to turn into a mixed use corridor. The City of Waterloo must be furious.

I wonder if this will connect to the first phase.

[KevinL]

Impressive. Love the podium styling - we're on to some winners with these folks!

[mpd618]

The tower itself is unremarkable at best, I think, but all the other elements of this are pretty awesome. I'm definitely glad to see these guys showing how to make Northdale urban and an attractive place. These units are certainly targeted to students, or rather, they are targeted at potential investors looking for a solid market. In reality, they're units of interest to all kinds of people.

Which does lead me to wonder - there's got to be a reason no one seems to build urban apartment buildings, only condos. Even when it's clearly targeted at the rental market, like this building. Is it difficulty getting financing?