Downtown London is getting another major residential development as Old Oak Properties will build a $25-million condominium in the core. Construction is slated to start on a 15-storey, 175-unit structure at Kent and Talbot streets within two weeks, said Bernie Bierbaum, Old Oak vice-president.
"The future of downtown has been addressed and I have a lot of respect for what the city has done," Bierbaum said yesterday, referring to developments at the forks of the Thames, Covent Garden Market, the new Central Library, MainStreet program and John Labatt Centre as making downtown a place to invest. "This is very exciting for the city.
"We have been cautious. We wanted to see how successful the changes were," Bierbaum added.
Bierbaum praised the city's millennium plan for aiding downtown development by waiving development fees and property taxes. For the new Talbot Street development, waiving the fees saved $500,000 and property taxes of more than $250,000.
"Years ago, the city used to ask developers to invest in the core and we said the city has to provide infrastructure. Well, they went ahead and took the action and investors are going back to downtown," said Bierbaum. "We are all testing the waters."
There is a parking lot on the site at 520 Talbot St., on the southeast corner, and an underground parking development for the nearby Dufferin Corporate Centre. Old Oak has had site plan approval for the development for several years, but waited to see people return to the core, said Bierbaum.
Lindsey Elwood, chairperson of the London Downtown Business Association, cheered the development and praised Old Oak for supporting downtown London.
"It shows the confidence that things have turned around downtown. Revitalization is really all about people. I think the Bierbaums are satisfied there is a market. It is one more show of confidence," said Elwood.
Old Oak built a 100-unit condominium at Talbot and Dufferin streets in 1987-88, as well as a host of downtown office space in the 1980s.
"They were doing it before anyone. They were first and showed real leadership," said Elwood.
While there has been an explosion of condominium developments in the city in 2003, there should be demand for more, said Ken Sumnall, senior market analyst for Canada Mortgage Housing Corp. "There will be a lot more competition for those residences, but the demographics lean in favour of there being demand," said Sumnall, referring to the growing 55 and older age group who are selling their homes.
In 2003, a total of 837 rental apartment units were built and about 550 more units are forecast for 2004, he added. "With property values rising, everyone has money from home ownership for rentals. It is forecast that rentals will be the strongest growth segment for households."
In the last 12 to 18 months, developments include: a 440-unit twin apartment tower development on Dundas and Waterloo streets; a 137-unit tower on Ann Street, at Talbot and Oxford streets; a 148-unit tower at Wonderland and Southdale roads; a 160-unit building at Wonderland and Springbank and a 156-unit building on Proudfoot Lane.
Construction will also start soon on an 88-unit, 14-storey building at Pall Mall and Wellington streets.
Old Oak is marketing the new, Talbot Street units to empty-nesters and professionals. The new development will feature units of 1,500-square-feet and larger, renting from $1,200 to $1,600 a month. The development will be ready for occupancy in spring, 2005.
"We have learned that people want space and they have the dollars," said Bierbaum.
