Hazelview Investments moves rental projects from pipeline to homes across Canada

TORONTO · Hazelview Investments is moving several major rental housing projects from planning to construction and occupancy across Canada. The company has welcomed the first residents to its Station House tower in Toronto and broken ground on new purpose-built rental developments in the city and in Halifax. The progress highlights the complex execution required to turn housing plans into homes amid challenges with financing, approvals and construction costs. Station House, part of the broader Bloor and Dufferin development, has begun welcoming tenants to more than 1,100 new rental homes. Michael Williams, managing partner and chief development officer at Hazelview, said reaching occupancy required an exceptional team and disciplined processes over many years. "The execution model needs to stay flexible. On a multi-year project, markets, costs, policy and conditions will change, and the team has to adapt without losing sight of the plan," Williams said. He added that welcoming the first residents shows what that combination can deliver.

Financing for the larger Bloor and Dufferin project, which will include 856 new purpose-built rental homes, was secured through one of the largest Canada Mortgage and Housing Corporation-insured loans issued under the MLI Select program. The project qualified under both the program’s energy efficiency and accessibility categories. Construction financing was provided by First National Financial LP. Williams noted that a project's total cost must produce returns strong enough to attract capital. "A good site and a strong concept won’t carry a project whose numbers don’t work. That cost only holds up if there is certainty behind it. Approvals, construction pricing and schedule all need to be firm enough that investors and lenders can underwrite with confidence," he said.

Michael Tsourounis, co-CEO and CIO of private real estate at Hazelview, said moving projects forward also requires "conviction in the long-term investment thesis and conviction in multi-residential as an asset class." He said the experience of Station House informs remaining balanced through changing market cycles and maintaining a long-term strategy rather than reacting to short-term headlines. New construction is also advancing at two Toronto sites. Hazelview and Castlepoint Numa broke ground this year on an 18-storey rental building at 72 Perth Avenue in the Junction Triangle, which will deliver 255 homes including 51 affordable units. In Leaside, Hazelview and Sierra Corporation broke ground on a 15-storey rental community at 383–389 Cleveland Street, offering 217 homes with 43 affordable units. The Leaside project will include approximately 8,500 square feet of indoor and outdoor amenity space and will be Hazelview’s first to incorporate a geothermal-based mechanical system.

In Halifax, the Story of Willett West development has added 530 rental homes in the Clayton Park community. Hazelview says its integrated investment, development and property management divisions help inform design decisions based on resident feedback from its existing portfolio. "It gives us a deep understanding of what residents need and how they experience a building, and that informs design decisions well before construction starts. You wouldn’t invest in, design and manufacture a car without feedback from the people who drive it. We apply the same principle to the homes we build," Williams said. The company states that solving Canada's housing shortage requires economically viable projects that are appropriately financed, approved, built and successfully operated over the long term. It says increasing the pace of delivery will need collaboration between governments, municipalities, lenders, investors, developers, construction partners and communities, and an environment where long-term capital has the confidence to invest.

With files from UrbanToronto