Costas Kivelos:
Welcome to another week of condo investing with Costas. I am Costas Kivelos, Founder of First Access Condo, mentor to thousands of realtors and investor of millions and millions of dollars in the pre-construction market for my clients. Now, this week, we have a special episode. We are onsite at the future site of LeftBank Condos, a project 34 stories high, excellent architecture by IBI group and built, developed by Broccolini, one of the largest construction companies and developers in Canada. This is going to be their second project developed in Toronto. First located right behind us is River & Fifth which is well under construction and later on, we’re going to show you how the construction is progressing. This project is situated in the heart of the River District, the most up and coming area in the city. Area to future redevelopment, current redevelopment and if you come down here for a ride, drive right on river street or a walk, you’re going to see construction everywhere. Buying here, you will be getting in on the forefront of an area that is about to boom. Today, we’re going to have the pleasure of speaking with Phil Brennen, Senior VP of Real Estate Development at Broccolini, James Bradeen, Director of Sales and Marketing for Milborne and, of course, myself and we are going to tell you everything that you need to know about LeftBank, Broccolini, the riverside area and why you should buy here. Talk to you guys soon.
Welcome back everyone. I am currently inside the Broccolini LeftBank sales center. I’m with my good friend and colleague James Bradeen. For those of you that have been watching the show, James, he’s been with us before. He is the VP of Sales and Marketing at Milborne Real Estate and what they do? They sell condos. Now, James, thanks for coming back. It’s always a pleasure. We haven’t got a chance to hit the links yet this year because for some reason, golf courses are locked down but we can focus on doing what we do best and that’s making people money. Now, let’s talk about this fantastic project, 34 stories in the heart of the River District, okay?
James Bradeen:
Yes.
Costas Kivelos:
LeftBank by Broccolini. Let’s talk a bit about the building, enlighten us on why people should buy this.
James Bradeen:
So, first of all, Costas, thank you so much for coming in. It’s always a pleasure to work with you and to give you first access to this incredible project. So, we are so excited to introduce LeftBank because as Costas has mentioned, this is in the heart of the River District and it’s one of the most exciting areas you’ll find throughout the entire city today and it’s because of the amount of development and growth that’s taking place in this east end. So, one thing that we’re going to touch on is East Harbour and that’s all of just a few minutes away. We’ll also talk about the Port Lands revitalization, as well as some of the tech growth that’s coming to this east end but first of all, looking at this stunning building designed by IBI, it is 34 stories tall with 388 suites ranging anywhere from about studios at 328 square feet up to three bedrooms over 900 square feet.
Costas Kivelos:
So, like James said, this is a stunning structure. Now, I know when people think condos, they think towers of glass and the same cookie cutter type of build. This is not the case. Later on, you’re going to see a view of the whole project all the way around and you’re going to see that if you buy in here, if you live in here, you’re buying and living in a project that does stand out in Toronto skyline. Now, James mentioned we have a cross section of suites from 300 some square foot studios up until 900 square foot three bedrooms, perfectly sized for the urban landscape which is Toronto. Now, tell me a bit about the amenities. Now, we know people move into condos for quality of life so that they can have everything at their doorstep and this is the case with left-wing. There’s rumors… actually not rumors, it’s a fact but there’s going to be a major grocery chain coming next door. We also know that there’s entertainment, retail and dining all at your doorstep. Now, besides that, which is the secondary reason you’re buying here, you’re going to buy here for the amenities. So, tell me what great amenities are going to be at people’s podium level.
James Bradeen:
So, I think you really hit the nail on the head. It’s about lifestyle and the amenity program at LeftBank has been designed to elevate the lifestyle of the residents that will be living in this space and it’s things that are very helpful to the daily user. So, for instance, things like having a tool annex, this is something that enables the individual living in this space to utilize the tools and not have to worry about incorporating that into their own home, they have a space where they’re able to fix their bike and things of that nature located in the podium space.
Costas Kivelos:
And from my understanding, you’re the second project in the city to incorporate this great idea.
James Bradeen:
Exactly.
Costas Kivelos:
Remember, sometimes the simplest things are often the most forgotten and Broccolini and Milborne are in the head of the curve and are incorporating things that no one else has thought of to make your quality of life and your tenant’s life easier.
James Bradeen:
Exactly. So, again, there’s over 16,000 square feet of amenities located within the first six floors of the building and that’s going to also include a fantastic fitness space. So, for someone like yourself, obviously you would absolutely love the incredible fitness area that we have in this building. There’s also going to be a kid’s room or a kid zone, there’s also outdoor barbecues, you have a Zen room, there’s also going to be a juice lounge. It really is something that there’s something for everyone.
Costas Kivelos:
So, when you think about that, what we have is, we have fitness, we have kids’ playrooms, we have a Zen lounge. It really has something for everybody because remember, quality of life is the key to why people want to live in the core.
James Bradeen:
Exactly.
Costas Kivelos:
You’re not coming here to have square footage. You’re coming here for quality of life and now that you mentioned something, again, the kids playroom, we saw an original Exodus from urban centers to the suburbs in the nineties and now we’re seeing people come back and I know people in the media have been saying that there being a mass Exodus from the city from because of COVID, that is false, okay? As COVID vaccine rollout happens and we’re seeing businesses start to open up which is going to happen this year, you’re going to see people coming back to the city and we’re going to continue a trend where families are purchasing larger suites and they need amenity space and it’s fully used, fully appreciated and that’s why condos are where they are today.
James Bradeen:
I couldn’t have said it better myself.
Costas Kivelos:
And that’s why we compliment each other and that’s why we try to do as many as we can. All joking aside, it is a pleasure to work with James and he is a wealth of information. Now, we talked about the building.
James Bradeen:
Yes.
Costas Kivelos:
We talked about the area. Now, we’re going to talk about East Harbour, a 12-minute walk from LeftBank.
James Bradeen:
Yes.
Costas Kivelos:
East Harbour is the largest commercial construction project in North America. It is going to be the central hub for the Ontario subway line. It will have close to 70,000 full-time employees working there every day.
James Bradeen:
Yes.
Costas Kivelos:
Now, what does that mean in investment terms as a condo buyer at LeftBank?
James Bradeen:
Having the ability to have 70,000 jobs within walking distance is something you will not find it throughout the city of Toronto.
Costas Kivelos:
No.
James Bradeen:
This is an incredible opportunity with a development that is an $8 billion project.
Costas Kivelos:
Not only will you not find this in Toronto but it’s the largest project in North America. So, you won’t find this anywhere else on the continent.
James Bradeen:
Exactly and to put 12 million square feet into context, that’s about 250 football fields. It is an absolutely incredible amount of space and having office, having retail, having that so close to LeftBank provides the opportunity for people to live close to one of the most central hubs in the entire city.
Costas Kivelos:
Yeah. Remember live, work, play, the three keys. Now, I have been quoted as always saying that we are becoming a series of islands due to traffic congestion. We were never designed by urban planners to have so many people living here and so many cars and transit is key, proximity to transit. 12 minutes away, you will have the Ontario Relief Subway Line situated at LeftBank. That is a major contributing factor to why you need to purchase here.
James Bradeen:
And you know what? Even closer; [0:09:45] station, all of five minutes away. So, you’re able to get to the Ontario line through [0:09:49] station, or again, you have the most connected transit hub outside of union station, only 12 minutes away.
Costas Kivelos:
Two transit options, 5 and 12 minutes away, everything at your doorstep, a beautiful design building in the heart of one of the best new areas of the city, Riverside, you cannot go wrong. We’re going to take a quick break and when we come back, we’re going to have Phil Brennen, head of Broccolini, Toronto and he is going to tell you about one of the most exciting construction and development companies our country has. Talk to you guys soon.
Costas Kivelos:
Welcome back, everyone. I’m so excited to have this grand triumvirate with me today. I have James Bradeen, the man who needs no introduction because we’ve already introduced him multiple times but to my right, I have Phil Brennen, Senior VP of Real Estate Development at Broccolini. Broccolini, as you will find out shortly, is one of the largest construction companies and developers in Canada. Now, Phil we’ve had the pleasure of working on LeftBank sister building River & Fifth, fully under construction as you guys will shortly see. Now, again, we have the great opportunity to work on the LeftBank, 34 stories of architectural beauty. Now, before we get into that, which is your baby, I want to talk about the father behind it, Broccolini Construction. Now, from what I understand, Broccolini started off as a family run construction project company in Montreal. Now, tell me a little bit about how it grew into the juggernaut that it is today.
Phil Brennen:
Sure, Costas. Thanks. We are a family run company, we are still a family run company. The third generation of the Broccolini’s are now operating. We started 72 years ago in Montreal building one single-family house and since then we’ve grown to a company of over 400 people in three offices, Toronto, Ottawa, Montreal and we are happy to bring LeftBank to the market. This in fact is going to represent our fourth project in Toronto, our fourth tower in Toronto. In the past two years, we have brought over $800 million of condo product to Montreal and a similar number, including this project, to Toronto. In the next two years, we’re going to double that in both markets.
Costas Kivelos:
That’s close to $2 billion in four years of product. Now, let’s talk about a little bit of the background and what a lot of people don’t know but we here at First Access Condos do the research for you and we’re going to share some stats and you’re going to see it. You said you have over 400 employees.
Phil Brennen:
That’s right.
Costas Kivelos:
We touched on the sheer scale of East Harbour and how it’s the largest commercial construction project in North America. Now, Broccolini manages 11 and a half million square feet of real estate.
Phil Brennen:
That’s right.
Costas Kivelos:
That is the size of East Harbour. Now, wrap your heads around that. Something even more impressive, how many square feet have they developed?
Phil Brennen:
We’ve developed over 40 million square feet of real estate.
Costas Kivelos:
James Bradeen, the stats man on the panel, how many towers is that?
James Bradeen:
If you look at LeftBank, for instance, that’s about 160 towers the size of LeftBank and it’s the equivalent of the downtown core of Toronto.
Costas Kivelos:
So this one development and construction company has developed essentially the entire downtown core of the Manhattan of the north.
Phil Brennen:
About 800 football fields. It’s an outrageous amount of development.
Costas Kivelos:
That is a number that defies logic and makes you think that if you’re going to partner up and invest into a developer, who better than literally one of the biggest boys on the planet, Broccolini Construction. Now, tell us what makes working at Broccolini fulfilling and why you come to work every day and are just ecstatic about bringing these type of things to the market.
Phil Brennen:
There are a couple of great things actually. Being a family owned company, Broccolini, the name is on everything that we do and the family believes in the legacy of that name. So, everything that we put out, we are super proud of. We want it to be above and beyond. It’s not the bare minimum. This is something that we’re going to be proud of 20, 30 years from now. Personally, for me, I was born and raised in Toronto, I’m a Toronto guy. Our head office is in Montreal and the passion that I have for my city is it’s leveraged to the strength of this large company where they want us to believe in what we’re doing. I want to show my kids this building in 10 years from now and have them be like “Wow, dad. That’s amazing.”
Costas Kivelos:
And I think it’s going to be one of those projects. I drive around the city regularly with my twins and they’re a little tired of me saying “Dad sold that, dad sold that, dad sold that.” but there’s always a couple of projects that we pass by every few months that really stand out and you’re actually proud to tell your kids “I was a part of that” and I think Broccolini and what they build and what they bring to market are such projects. I currently live in a building that’s built by Broccolini and I have to admit the workmanship is impeccable. So, I take great pride in selling your product and allowing my investors to come into something of this caliber. Now, where do you see Broccolini moving ahead? You mentioned them on what they’re bringing to market. They’ve started River & Fifth, construction is well underway over a year now, okay? We’re about to launch 34 floors of grand architecture here at LeftBank in one of the most upcoming areas of the city, what else do we have in the forefront? Where’s their vision taking us?
Phil Brennen:
Well, it’s been a really, really interesting year for all of us.
Costas Kivelos:
Oh, no doubt.
Phil Brennen:
But this past year, despite everything, has been our biggest year in terms of business, dollar volume and product that we’re putting out. So, that… being able to succeed through that kind of tricky year, we’re able to leverage that into tremendous growth plans. So, we are doubling down in Toronto, we’re tripling down in Toronto. Even in Montreal, we have acquired four new massive sites, in Toronto right now and working on entitling a two tower site and we’re actually looking into purchasing a site that’s going to cost hundreds of millions of dollars and we’ll have a pipeline that will last 10, 15 years. We love the city. I love my city. Broccolini loves being here.
Costas Kivelos:
And I love working with Broccolini. Now, It’s always a pleasure that can collaborate on anything and we achieved great success in River & Fifth and I think, for all the reasons we just stated, LeftBank will be even more successful. Now, James, Milborne. You guys have a long history of picking winners and hand selecting the best projects to bring to market. What made Milborne partner up with Broccolini and why has it been such a pleasure working on their projects?
James Bradeen:
I think it’s… there’s a number of reasons why but we do feel honored to work with Broccolini and the extensive track record, the knowledge, the understanding of development, as well as building, it’s a developer that understands the industry probably better than anyone throughout the entire city of Toronto and it’s a developer that has an impeccable track record. If you look at some of their clients that they’ve worked with in the past, there are companies like Amazon, there are companies like Canadian Tire and this is important because if you look at the commercials, if you look at the industrial side of the business, timing is everything and ensuring that the build quality as well as the quality control for the product is top notch and elevated is one of the most important things you’ll find in any purchase or any real estate purchase. So, being able to work with a company that works with such incredible companies and it’s such an elite company is a really special thing.
Costas Kivelos:
Anytime you get world-class company, some of the biggest on the planet, partnering up and choosing a construction company and developer to work with, you know that they are making the right choice because they’ve done the research for you. So, when you buy in a Broccolini product, you know that companies like Amazon, they’ve made the right choice and you’re making the right choice. A little bit of recap, over 400 employees, 72 years in the business, 11 and a half million square feet managed, how many million square feet developed?
Phil Brennen:
Over 40 million.
Costas Kivelos:
That’s 40 million. That’s a serious number. Now, we’re going to let you guys take a short break. There’s a lot of information. I want you to absorb it and we’re going to take you live on the actual site of River & Fifth so you can see that construction is underway with one of their projects. See everybody soon.
Costas Kivelos:
Welcome back everyone. Costas Kivelos, First Access Condos. We are onsite at River & Fifth, the sister building to LeftBank, under construction for over a year now and as you can see, we’re above grade, well ahead of the projected timelines. When you’re working with a developer and a construction giant like Broccolini, remember the stats: 11 and a half million square feet managed, 40 million square feet developed, over 400 employees and 72 years of experience, a multi-generational family business who takes pride in everything that they do and nowhere else will you be able to see pride of work more so than at their construction sites. Like I said, we’re ahead of construction. When you wonder if a developer will finish, these guys will not only finish but they will be ahead of schedule or on time. They’re even on time when they’re late. When you’re buying in this project, you are going to see adherence to schedules, meeting timelines, immaculate craftsmanship and attention to detail.
That’s why you should always invest with a developer that has a proven track record in history and who greater than somebody who’s been in business for 72 years. Thank you for the taking the time to watch us and before we leave you today, we are going to talk about why you buy a pre-construction condo. You buy it to make money. Every bit of real estate is an investment, even if you’re living there and that’s why you buy pre-construction. There is no better investment in Canadian real estate, no better investment in the world. We saw more condos than any other city across the globe and we bring you annualized returns of close to 50%. Yes, 50% and stay tuned and we’re going to tell you how we meet those goals. Thank you.
Costas Kivelos:
Welcome back everyone. Again, I’m Costas Kivelos, Founder First Access Condos and mentor to over 5,300 realtors at Canada’s largest independently run [0:25:49] brokerage. Why do we invest our money especially in real estate? For one thing, capital appreciation and when we talk about capital appreciation or any type of real estate investment, you’re going to hear the term ROI. What does that stand for? Return on investment and that’s what we are looking for. I’m going to use a real-life example of one of my investments that 15 of my clients followed me into and we’re going to tell you how they made money and how much. If you bought a unit back in November 2015 at 150 Redpath in the young Eglinton area of Toronto, a 600 square foot, 1+den was selling for $372,000, that’s $620 a square foot. The initial 20% down payment worked out to $74,400. Current resale today in the young and Eglinton area for new condos is at $1,050 a square foot.
Now, your 600 square foot 1+den at Redpath has a current market value of $630,000 compared to the initial purchase of 372. When we subtract the new number from the old one, that works out to $258,000 in gross profit. Now, when you talk percentages because that’s how we measure return, that’s a 347% gross return on your initial investment of $74,400. Now, I ask anyone to try to beat that number across the globe and I’ll tell you they won’t be able to do it. Now, when you talk about buying a pre-construction condo, you’re going to hear the naysayers tell you that your condo will cost you money every month and it won’t be able to carry itself with the rent that you’re going to accumulate from your tenant. Now, the answer to that is, as I’ve touched on earlier, is that it’s not that important to be positive cashflow monthly. Capital appreciation is what we’re aiming for but let’s run over the rental numbers. Currently, if you were to buy a one bedroom in the city of Toronto at $600,000, with a down payment of $120,000, you would have to service a mortgage of around $480,000. Now, forecasting that rates are going to go up, that would be around $1,900 a month given increase in rates not by today’s standards. If you have maintenance fees at 65 cents an interior square foot, that works out to 390 a month. Property taxes at about 1% which is excessive, well, let just say that because we know the city’s going to need money after COVID, that would be around $500 a month. Insurance, $50 a month, water, $20 a month, total expenses of approximately $2,860 a month. In four years, with a 7% rental increase, which is extremely conservative because we know that immigration is going to explode to the area, your rent would increase to $2,900 a month with expenses at $2,860. That’s cashflow positive monthly of $40 that works out to just under $500 a year. Now, we all know no one’s going to become rich from being a landlord with rent but it will cover your carrying costs and if mortgage rates stay low, that number will jump significant.
Thank you everybody. Thank you for taking the time to watch and listen to me. Hopefully you found it entertaining and very educational. Again, I’m Costas Kivelos, Founder of First Access Condos. Please feel free to contact me anytime and check us out on our YouTube channel, First Access Condos. Email, [email protected] and again, our website, www.firstaccesscondos.com and if you’re old fashioned the way I am, 416-662-5701, call me anytime. I’m always available. Thank you and see you next week.