SOLD ON THE INNER-CITY VIBE
Walkability a key draw for ‘lifestyle’ buyer in Grosvenor condo developments
When Daniel Rieder was still a university student, he already had a history of saving and made his first real estate investment in a rental property with his parents.
Today, the 29-year-old cost control analyst for a midstream oil and gas company has continued that financial strategy by buying two condos in different Grosvenor developments in Calgary.
Just over a year ago, Rieder moved into a two-bedroom unit in Drake, which he purchased in preconstruction stage while he was still working in Fort McMurray.
Now, he has bought a one-bedroom in Smith (again in the preconstruction sales stage), just a block from his current residence in the Beltline area.
“I am so close to everything; I can walk anywhere,” he says. “I am a 15-minute walk from work and I am always down on 17th Avenue for coffee, or the restaurants. I have a car but I don’t use it unless I am golfing or driving to hockey.”
Rieder, who still owns that rental property he bought in his hometown of Chilliwack, B.C., with his parents, plans to move into the 129-unit, 18-storey Smith, slated for occupancy at the end of 2016.
He would then rent out his unit in Drake — a unit he says has al- ready increased by about $70,000 in value.
And while Rieder has been smart about his home purchases — researching Grosvenor and buying in pre-construction sales stages when pricing is lower, giving him a year or more to save money before each building is ready for move in — ultimately it was the inner-city location that drew him.
“It’s a very desirable area — I know lots of other people my age who are living in the inner city, whether the Beltline, Mission, Bridgeland or Kensington. It’s lifestyle. We’re not interested in the suburbs.”
Robert Duteau, senior vicepresident development for Grosvenor Americas, says that search for lifestyle is why, even in an economic dip, there will continue to be demand for inner city homes.
“Whether there is $30 oil or $100 oil, it does not affect where these ( lifestyle) buyers want to live. They are not going to look outside the inner city.”
He says strong development in the emerging city core, after boom years that saw significant urban growth, appeals to young professionals who continue their migration to Calgary.
The city is expected to see growth of another 20,000 people in the next year, after the latest census figures showed a more than 24,000-person growth between April 2014 and April 2015. While the influx of new people is less than previous boom year records of almost 40,000 new residents, Calgary will still see an expected population growth among the best of any Canadian city.
With 33 the average age of Beltline residents, Duteau says those younger buyers do not want to get into their car every time they want to do something — whether it is to go to work, or to the gym.
With 68 units in Smith already sold, nearly half the buyers in the project have been young professionals or first-time buyers, with the second slate of purchasers primarily those downsizing from larger homes.
Smith is under construction at 15th Avenue and 6th Street S.W., with suites ranging in size from 449 square feet to 1,680 square feet. The largest units are the twostorey City Homes that will be the street-level base for the project.
Studio units start in the $280,000s; one bedrooms in the $370,00s; two bedrooms in the $490,000s, and City Homes in the $590,000s.
There will be a secure underground parkade, and the building will also offer a bike share program, a tool library, a social amenities space, and will have a dedicated front desk concierge for package storage, car detailing, key service and dry cleaning convenience, off of the landscaped plaza framing the front entrance. Each suite will have a balcony, patio or terrace. There will be building-wide fibre optic wiring and the street-accessed City Homes will have individual security systems.
Duteau says Grosvenor’s philosophy is to only invest in “living cities,” those with vibrant centres.
He describes Calgary as a “resilient city” that has gone through market fluctuations before but that, on a long-term basis, is on a significant growth curve.
“Calgary always goes back up more than it goes down.”
And as an international company that “delivers on its commitments,” buyers have also seen significant investment upside in Grosvenor projects.
Whether there is $30 oil or $100 oil, it does not affect where these buyers want to live.