Bauhaus Condos, the highly anticipated 32-storey tower in downtown Toronto from Lamb Development Corp. is offering investors a two-year rental guarantee.
According to Ryan Coyle, co-founder of Connect.ca Realty and an investor who purchased a Bauhaus unit, the developer is so confident in the project’s underlying fundamentals that, despite downtown Toronto’s rental market softening during the COVID-19 pandemic, it decided to roll out the guarantee.
“In four years or so when the building is ready, the amount is guaranteed for a couple of years because the developer knows that when the doors to Toronto reopen, rents will skyrocket,” said Coyle. “There’s no free land in downtown Toronto and development is becoming very scarce. You can see how many true launches there are in downtown east and west—they’re few and far between—and that means supply and demand fundamentals will come into play in the near future. Downtown Toronto real estate is the safest in Canada, and when you talk about immigration and job growth it’s an even brighter picture.”
On a one-bedroom 515 sq ft unit at Bauhaus, Lamb Development Corp. is offering rental guarantees of 32.6% in the first year of ownership ($58,411 profit), 187.08% in the fifth year ($334,362), 443.4% in a decade ($792,546), and 2,637.9% ($4,714,642) in 30 years.
For a one-bedroom-plus-den at 581 sq ft, there’s a 32.9% ($65,177) rental guarantee in the first year, 188.1% ($372,981) in a half-decade, 445.8% ($883,779) in a decade, and 2,649.3% ($5,251,739) in three decades.
A two-bedroom, 765 sq ft suite would earn investors 32.2% ($79,849) after a year, 184.5% ($457,491) in the fifth year, 437.7% ($1,085,507) in a decade, and 2,612.2% ($6,477,784) in 30 years.
Bauhaus Condos will be across the street from an Ontario Line subway stop, adding immense value to the project.
“There’s nothing better than living in central Toronto and having a subway nearby,” said Brad Lamb, owner and CEO of Lamb Development Corp. “King St. E. goes through the original 10 blocks, which are Spadina to Parliament, known as the historic city, and it’s better connected than the west side of downtown approaching Bathurst.
“King St. is also a high street, and it’s more important to commerce in Toronto than even Yonge St. It’s the most prestigious street in central Toronto, and around Bauhaus an office building and a high-rise condo are being constructed.”
Downtown east is on the cusp of exploding much like the west side has in the last 15 years, with East Harbour expecting 50,000-70,000 new jobs and billions of dollars of investment from all levels of government allocated for revitalization, including at Toronto’s waterfront to the south of Bauhaus.
“I like buying in high-growth areas. Bauhaus is a seven-minute walk to the financial district and it’s part of a massive growth area,” said Coyle. “There’s going to be a transit hub with more daily traffic than anywhere else in Canada, save for Union Station, and the nearby waterfront will finally become world class. Everyone will want to live in the area.”