A rare opportunity

Guelph development proving popular among first-timers and downsizers

Ri sk in real estate is a given. But 10 years ago, when Lee Piccoli, founder of Fusion Homes, was buying eight acres of land around the old W. C. Woods refrigeration factory in downtown Guelph, he was up against a triple threat. The market for new condo developments was untested in the city, dominated as it was by single- family homes. The site itself was contaminated with runoff after more than a century of industrial use — before the freezer plant, it was home to a distillery and a grist mill. And there were regulatory hurdles: Guelph city council would need to rezone the property from commercial to multi-unit residential.

Still, Piccoli pushed ahead with his plan for a development called the Metalworks, on a lot near the fork of the Eramosa and Speed rivers, across a bridge from downtown. Surrounded by parks and a short stroll from the historic limestone buildings and quaint shops that make up the city’s main streets, he saw it as a rare opportunity. “You just don’t come across land like that very often,” he says.

The Metalworks is divided into five phases. The first two, which are complete, were more difficult to pull off than expected. Fusion Homes not only had to remediate the contaminated land, they had to contend with a high water table from the nearby river. And not only did they have to work with city council on the rezoning, “there was a very active neighbourhood association and downtown business group,” says Piccoli. Finally, it was a test to see if anyone would buy a condo in Guelph at a price that would make the project viable. “It’s not inexpensive to develop a site like this,” he says. “We started our sales at $ 340 a square foot. That price will make people in Toronto laugh. But many people here told us we were asking $ 50 too much.”

But the third and most recent phase to be launched, called the Copper Club, shows the formula’s working. The 120- unit building started sales in 2018, with the last units rolling out this summer. The night before the first suites were launched, interested buyers camped outside the sales office. The price they were willing to pay had risen close to $ 500 per square foot, or $ 352,000 for a 700- squarefoot place.

Copper Club buyers fall more or less neatly into two categories. Half are young first- timers, attracted by the 60 one- bedrooms and one- bedroom plus dens. The others are downsizing empty- nesters who are predominately buying the 60 two-bedrooms and two-bedrooms plus dens; several face the water and a new paved trail system that Fusion Homes installed as a public amenity for the city.

Roughly half the buyers are from Guelph. The rest are Toronto escapees, eager to trade their city’s high real estate prices for a place with similar hipster charms. One of the Copper Club’s in-building features will be a library room where pulling a certain book triggers a door latch, opening a passage into a secret, speakeasy- style lounge. For those who prefer to drink out, there’s a restored century- old mill next to the Copper Club that is home to a bar called the

Ward, as well as a whiskey, gin and vodka distillery coowned by Fusion Homes and the Sleeman family.

Piccoli, who was born in Guelph, says there are other reasons why people from the GTA are being drawn to his hometown. “We are close enough to Toronto, there’s good highway and Go Train access,” he says. “People also like Guelph’s softer side. We are a city that really cares about the environment. Our MPP, Mike Schreiner, is a member of the Green Party.”

As evidence of Guelph’s progressive nature, Piccoli points out that the mayor, Cam Guthrie, recently announced he wants all downtown streets closed to cars from Thursday to Saturday for the summer, and possibly indefinitely. The idea is to give restaurants more room to spread out their patios, and pedestrians more space to physically distance. Some, including the Downtown Guelph Business Association, have urged caution, worried that limiting cars could also limit the number of people who can park and shop. Piccoli, clearly comfortable taking risks, is more bullish. “I think it’s a great idea,” he says. “I’ve already been in touch with the city, offering whatever help I can provide to make this happen.”

Units starting at $350,000. For more information, visit themetalworks.ca/ the-copper-club.

Photos courtesy of Fusion Homes Copper Club at The Metalworks, a 120-unit building across the bridge from downtown Guelph, has a speakeasy and river views.

Sales of Copper Club units started in 2018, with the last units rolling out this summer. The night before the first suites were launched, buyers camped outside the sales office.