Signs, Signs, Everywhere a Sign

Real estate market bears signs city is emerging from recession
By Mario Toneguzzi
Calgary Herald May 26, 2011

During his career in the homebuilding industry, Tim Logel has seen three recessions in close to 30 years.

And Wednesday he said signs that Calgary is coming out of the recession are present today like they were in past recessions.

"Those signs are very consistent and you can put your finger on them. No. 1, there are buyers out there," said Logel, president and partner of Cardel Lifestyles, which held a grand opening of four new condo models and launch of Panorama West in Genstar's Panorama Hills.

Logel said interest in the fourbuilding, 288-unit condo project has been strong.

Cardel Lifestyles is in the process of working on five multi-family developments in the city comprising between 1,200 to 1,400 units, a mixture of townhouses and condos.

The projects include Panorama West in Panorama Hills, Lighthouse Landing in Country Hills, Cranston Place, Prestwick Place in McKenzie Towne and Riverside Townhomes in Chaparral Valley.

"Some units within those projects are ready for immediate occupancy. We carry standing ready-to-moveinto inventory in every project," said Logel.

"Homebuilding success is all about listening to the customers and if you listen they'll tell you what they want. No. 1 they want a location. . . . Is there an opportunity? You bet there's an opportunity because customers flock to quality. They focus in on the top locations available within Calgary and they will take the time to find those locations. They're not in a hurry. They've become very educated and wise about their buying decisions."

In a recession there is always way more fear in the buyer's buying decision than there is when the market is booming, said Logel.

The interest in the new multifamily market in Calgary is evident by the traffic through show homes. Logel said at Panorama West in three weeks about 600 groups visited the models "which is amazing."

"Normal traffic that we're happy with is 100 groups a month," he said, adding that price, floor plan and community amenities are also important for potential buyers.

Lai Sing Louie, a regional economist with Canada Mortgage and Housing Corp. in Calgary, said year-to-date until the end of April there have been 921 multi-family starts in the Calgary census metropolitan area, up 2.3 per cent from the 900 for the same period a year ago.

According to a recent Altus Group Housing Report, condominium apartment sales in Calgary from January to March this year were 776, compared with 333 for the same period in 2010.

The economic consulting firm said Calgary has seen "steady" new condominium apartment sales in the suburban markets, "which has eroded the available supply to the point of spurring increased starts activity for 2011."

WELCOME TO YOUR NEW HOME

New home prices top pre-recession peak

Financial Post · Wednesday, Jan. 12, 2011

OTTAWA — New-home prices were up more than expected in November, according to data released by Statistics Canada on Wednesday.

The new-housing price index rose 0.3% that month, beating economists’ expectations for a 0.1% gain, which would have matched the rise in October.

The latest data shows new-home prices have more than fully recovered from losses sustained during the recession.

Some of the biggest gains in particular cities were 4.2% in St. John’s, 1.6% in Ottawa-Gatineau and 1.2% in Halifax.

Higher costs for labour and materials were cited as some of the main causes of higher new-home prices in November, and for St. John’s in particular, bigger development fees.

Some areas, such as Victoria, Charlottetown, and Ontario’s Windsor and St. Catharines-Niagara regions saw lower new-home prices in November.

Year-over-year, the new-home price index was up 2.3% in November, down from 2.5% in October.

Photo By: SmartAnnie (Away)

CS IS ALWAYS GOOD TO HEAR IN REAL ESTATE

Calgary Stampede Park moves ahead with $400-million expansion
Several projects to be completed by 2014
By Mario Toneguzzi, Calgary Herald
November 9, 2010

CALGARY - With the economic recession behind us, Calgary's Stampede Park is moving forward with its $400-million expansion and redevelopment that will be completed within the next three years or so, the Herald has learned.

"By 2014, this will be a uniquely different place," said Warren Connell, vice-president of park development and operations for the Calgary Stampede.

The multi-million dollar construction includes Stampede Trail (a mainstreet retail and entertainment development), a new agriculture arena and exhibit hall, the River Park area along the Elbow River, and a youth campus part of Stampede Park.

"When the economic downturn hit, the Stampede was obviously right in the midst of a number of projects," said Connell. "We were in the process of completing the (BMO) Centre.

"We were dealing with a major sponsor on the River Park (area). Luckily for us we were close enough to being completed that the (BMO) Centre didn't suffer financially. It was sponsored to a large part by the government of Alberta. However the River Park sponsor did walk away and say at least for the immediate future they would not be launching into any new projects. That was disheartening to us."

In June 2008, the Stampede expected its major expansion and redevelopment to be completed by 2011. In June 2009, it expected completion by 2012-2013.

But the downturn in the economy delayed the process. Now, the Stampede is back on track to move ahead with its plans.

Connell said the Stampede is 70 per cent complete on relocating infrastructure pieces to a back of house area. Construction of the River Park area in the northeast quadrant of the park will begin after the Stampede in July.

"We do not have all the funding in place but the one advantage to having a green park is you can start doing chunks as the funding is available. We're still working on everything from sponsorship to grants and fundraising," said Connell.

He said the Stampede has just received development permit approval for a new agriculture arena and exhibit hall which it is calling the Western Event Centre. It has a $25-million grant from the federal government plus private donations and fundraising for more money to go ahead with the project.

Construction of the arena will start following the 2012 Stampede to be completed in 2014 prior to the Stampede.

Public space is being developed near the agriculture building as access to the River Park area which will house Indian Village in the future.

Alberta Development Partners, based in Denver, is working on the mainstreet retail development along the current Olympic Way which leads into Stampede Park and will include Jimmy Buffett's Margaritaville restaurant.

A spokesperson for ADP would not comment on the project when contacted on Tuesday. But the company's website says the project includes 150,000 square feet of retail space, 100,000 square feet of office space, a 300-room hotel, and public gathering places.

Connell said it is currently in the development permit process.

"They are hoping to do utility work this spring and start construction on their project post-Stampede this year - the actual buildings," said Connell. "That will be a two-year process. So they would be open in June of 2013."

The proposed Stampede Trail restaurant cluster and associated retail shops will be in perfect synergy with the constant stream of traffic generating attractions at Stampede Park, said Michael Kehoe, an Alberta-based retail specialist with Fairfield Commercial Real Estate Inc.

"This type of themed development in the shadow of major draws like the Saddledome is prevalent across North America as major league sports teams and their owners capitalize on consumers seeking a unique food service and shopping experience."

A 1,000-stall parkade near the Stampede Park entrance will be completed prior to the 2012 Stampede. The Stampede will relocate its current headquarters some time in 2012 further up the street to allow the current building to be demolished and to allow the remaining phase of mainstreet to be constructed between 2012 and 2013.

There is also a youth campus area in the northeast part of the Park that will be developed in the coming years and host several groups. Stampede Park is currently working on the first phase of the area.

By the Banks of the Bow sculpture - the largest bronze sculpture in Western Canada if not all of Canada - will be set up in the middle of the Park by 2012 and include 15 large horses.

The 4th Street underpass will link East Village to Olympic Way and will be completed by 2012.

Connell said the 17th Avenue S.E. crossing which would link the park to 17th Avenue through a roadway is still being pursued but no timeline for that has materialized. Future plans also call for looking at the potential relocation of the Coca-Cola Stage to where Indian Village currently resides. Another hall is also planned for the BMO Centre in the future.

And the Saddledome?

"All I can officially say is that the Calgary Flames have been dealing with us on a potential site for a new arena. The Calgary Flames are working out their own details with respect to the facility itself, fundraising and so on," said Connell. "As far as having agreed to a site, we have not but the two organizations are certainly talking."

WHO WANTS MEATBALLS?

Five extreme recession real estate buys 
Megan Mollmann
Published Wednesday, Nov. 10, 2010 6:00AM EST


Recessions are synonymous with job losses, stock market slumps and loss of equity, but less overall wealth can also mean big real estate bargains. As the prolonged pains of the recession continue, shockingly inexpensive property is available - including hotels without an asking price, $1 homes, and an entire town for sale.

1. The Pontiac Silverdome


In 2009, the former home of the NFL's Detroit Lions, the Pontiac Silverdome, sold for $538,000 - about 1 per cent of the $55.7-million the developers forked over to build the stadium in 1975. Over the past couple of years, automotive plant closures, massive layoffs and high foreclosure rates have stricken Detroit's economy and eroded property values.

2. Wilderness Camp in Canada

Despite an uncanny similarity to the fictitious camp in 1979's comedy "Meatballs", Northstar Camp is actually located in Manitoba. Set on 185 acres and on a mile of beachfront property, this nature and fishing camp is selling for $299,000. The place was originally built as a personal lodge in 1989 and is a prime fishing spot for lake trout, walleye and northern pike for four months out of the year. One hitch: A float plane is the only way to get to the camp.

3. Texas Golf Course

In Waco, Texas, the price of The Lake Country Club has been reduced almost 30 per cent, from $4.2-million to $3-million. It has two 18-hole golf courses (including one championship green that formerly hosted a LPGA tournament), a 5,000-square-foot clubhouse, and a waterfront camp and fishing site.

4. Landmark Home

In Chicago's upscale North Shore neighborhood, a landmark home - built by the nephew of renowned architect Daniel Burnham - is on the market for $1. There's only one catch: The local preservation commission in Glenview, Illinois. is obligating the next owner to move the 1894-era home to a new location. For two years, the local church, which currently owns the property, has been searching for a buyer so that they can expand their facilities onto the home's existing lot.

5. A Small Town

The fad of gobbling up islands has now shifted to small towns. Wauconda, a tiny four-acre township with a post office, gas station, grocery store, restaurant and four-bedroom house, was put up for auction on eBay in 2010. In March, it sold for $370,601 (U.S.), which stands as a significant rollback from the 2008 asking price of $1.1 million.

The Bottom Line

For investors still afloat, recessions tend to be attractive times to take advantage of real estate investment opportunities. And with upbeat news that the commercial real estate market is on the mend, prices may be at their lowest. In the third quarter of 2010, commercial real estate values seem to have stabilized, but buying opportunities still exist all over the United States.