Condos at One King West
One King West is a unique condominium project designed to operate in the spirit of the classic 19th century “apartment hotels” which provided superior and personalized service to long-term residents for whom their suite was a city ‘pied-a-terre, and one of several homes.
The development has four basic elements:
The “HISTORIC” phase consists of the landmark 1912 Dominion Bank building (subsequently head office of the TD Bank) which is being elegantly restored and renovated into 200 condo apartments. An interior atrium will rise from level 5 to level 11, enclosing 42 very private suites overlooking a peaceful gallery space.
The “TOWER” is a totally new high-rise structure, which is being constructed beside and above the original building. It will contain 360 condo apartments. Although carefully designed to complement the style and materials of the historic base, this modern skyscraper soars 51 storeys, and will be the tallest residential building in Canada. All suites above the 20th floor have some lake exposure; above the 30th, the views will be spectacular.
The RESIDENTS’ LOUNGE is located on the 12th and 13th floors. Originally lavishly constructed as the executive office level, this baronial, double height chamber will provide the owners and guests of One King West with an elegant and comfortably furnished ‘common room’, featuring complimentary breakfasts, beverages and light snacks at all hours. On the 17th floor is a gym, sauna, whirlpool, swimming tank and access to a roof garden.
The DOMINION CLUB, on the main, 2nd and 3rd floors, encompasses the spectacular original banking halls, which are being renovated into a private social and business club. Featuring 30 foot high ceilings which are gilded with the crests of the Canadian provinces, marble floors and pillars, soaring cathedral windows, the atmosphere is from another continent and indeed another century. This area is not legally part of the condominium, but the developer will provide complimentary memberships to all suite owners.
Suites range from meticulously planned studios to showpiece penthouses. Prices currently start at $249,900, including a complete furnishing package. The project is over 98% sold, although there is still availability.
For many owners, One King will not be their primary residence, but a “pied-a-terre” city apartment, a private office, an investment, (possibly all of the above).
“Location, location, location”
Downtown Toronto property values are still low by international standards. Throughout history, successful investors (no matter their original career) have always protected themselves by including in their assets some prime real estate.
King and Yonge has been the heart of Toronto’s financial and entertainment districts since the 1800’s. What makes the location so valuable and appealing is that the vitality continues after business hours. King and Yonge is alive and safe 7 days (and nights) a week. As well as office towers, the area offers residential condos, restaurants, shops, parks, churches, theatres, and even a 24 hour supermarket and farmer’s market. Residents may also walk – indoors – into the subway and underground PATH system which connects all downtown buildings.
What are the differences between Stinson Properties, and other condominiums? One King West and Sapphire Tower are entirely residential condominiums. They are NOT time shares, fractional ownerships, or syndications. Owners may occupy their suite permanently, or part-time, or lease it out for investment income.
Although the buildings have been designed to provide the atmosphere, services, and conveniences of a hotel facility, all the suites are individually titled properties and the building is operated in the interests of the individual suite owners, rather than as a ‘collective’ hotel business.
Suite owners have a variety of options, including;
(a) live in their suites full time
(b) rent their suite
(c) use their suite as a part-time residence / “pied-a-terre”
(d) use the suite part-time and generate income when absent
(e) utilize the suite as an office
Typically, when most people think of a ‘condo/hotel’ the term usually refers to a mixed-use, building, on the lower levels of which is a ‘name brand’ hotel, and on the upper levels, are private, residential condominium suites.
The services (and often the prestige of the hotel brand) inevitably enhance the appeal of condominiums in such a complex, although legally the condo and the hotel are separate entities.
At One King (and Sapphire Tower) however, the facilities and services are ONLY for residents or guests, and may not be used by people “off the street”. Because they are condominiums, the basic day-to-day building operational costs (maintenance, cleaning, utilities, security, etc.) are built into the condominium fees, while special features such as the restaurant, the Spa, and the limousine service, will operate on a ‘user fee’ basis.
Because only residents, guests and owners can use the amenities, there is more privacy and personalized service than a ‘public’ hotel.
In practice, owning a suite at One King or Sapphire Tower is like a membership in an exclusive club (except you actually receive a tangible asset… a suite, not just a golf shirt). In fact, owners in both buildings are automatically entitled to a membership in the Dominion Club, a spectacular social and business facility located in the grand banking halls of One King West.
Undeniably one of the appealing features of buying a suite in a condominium complex is the potential for generating income. Most condominium buildings, however, have been designed and marketed as owner-occupied apartments.
Stinson Properties, as developer, has specifically addressed the implications of suite owners’ leasing their suites. Typically, most residential condominiums have been designed (in terms of the layout, the operational systems and the condominium budget) as if all the suites are permanently owner-occupied. Realistically, however, it is far more common in condominium buildings for many of the suites to be leased. As a result, conflict can often arise between resident owners and the non-resident owners, particularly in the case of shorter-term and/or furnished rental situations, which will also place the property manager and/or the condominium board in an awkward position.
Given the [financial and entertainment district] locations, and the compact size of a large number of the suites, it is reasonable to assume that for many owners, the suite will not be their principal residence but rather a “pied-a-terre” (for occasional use) or an income property. Thus the developer felt it appropriate to put in place ongoing systems and services to accommodate the needs of the owners, and to minimize the potential for future stress.
Prospective purchasers should be aware of the following;
(i) Short-term leasing is permitted within the building
(ii) In order to ensure the security of the building and consistency of standards, all short-term leasing is co-ordinated through one specific leasing manager appointed by and accountable to the condominium.
(iii) Individual owners may, on their own, lease their own suite(s) for periods of one year or longer
(iv) There are separate property and leasing managers. The property manager is responsible for day-to-day, general maintenance of the “physical plant”, and is contracted to the condominium board. The leasing manager is responsible for leasing activities suites and is contracted to unit owners, on an individual basis.
(v) Suite owners are not required, as part of a purchase, to enter into a leasing contract. The purchase of a suite is an unrelated transaction.
Stinson Hospitality has designed a variety of unusual leasing management services to assist condominium owners generate income from their suites. Leasing staff are onsite and on duty 24 hours a day, seven days a week, and able to immediately respond to tenant/guest requirements. This level of service and constant, hands-on attention allows SHI to maximize leasing income and tenant satisfaction, and thus minimize vacancy.
PLEASE NOTE
It should be emphasized that the leasing services were designed to enhance the convenience and appeal of the underlying real estate properties, rather than being considered business ventures unto themselves. SHI will use commercially reasonable efforts to secure qualified tenants for the suites, however SHI does not guarantee a rental occupancy rate an any minimum level, nor will it assure a unit owner that the enrollment of the unit in a leasing program, or entering into a rental management agreement with SHI will generate an economic return for the owner.There are minimum cash equity requirements, an acceptable ratio between equity and the unit mortgage, currently reasonable mortgage rate assumptions, varying market conditions, and other issues which each interested purchaser and/or suite owner should discuss directly with a representative of SHI and with their own financial and legal advisers.
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