In early May, Pinemount Developments and Cranson Capital celebrated the groundbreaking of The Hawthorne: an up-and-coming, purpose-built rental building that, in true Pinemount fashion, will bring premium amenities and innovative building design to North York.
The development site at 130 Gorman Park Road, off of Sheppard Avenue West, is arguably the perfect spot for the Toronto-based development firm to put their mark on.
“The Shepherd area, all along Shepherd, has just not seen the love that most other avenues have seen, and I think it's because we've slowly moved from south to north as the years have gone by. And it is really a strong market that needs good, well-designed housing for that pocket,” explains Oren Turkienicz, Vice President of Acquisitions for Pinemount.
“[The area] is missing a lot. If you look down the strip, it's a lot of the same — retail and very service oriented — so I think we’re providing something different.”
Upon its completion, The Hawthorne will contain 170 new rental units, a ground-floor commercial component, and an array of condo-style amenities. Think: a fully-loaded gym, party room, movie theatre, and golf simulator, amongst more.
“It's a higher-end product,” Turkienicz notes. “We are also looking at providing not just what we call ‘tangible’ amenities, but ‘intangible’ amenities, which is community feel, community involvement, involving some local commercial discounts for residents. I think this area, specifically in North York, as a whole, has just not seen that type of approach on a rental basis for a long time.”
Another key thing to note about the project is the demographic it will cater to — or rather, the demographics.
“The area is just on the edge of Clanton Park and Bathurst Manor, which are both in transition between an older demographic and young families that are moving in. The areas are very nice and housing is still in the [price] range that makes sense for young families to buy and grow their home base,” Turkienicz explains.
“So we're tailoring the units to match that, and we're looking at the downsizer as well as young professionals looking for rental option to be in the area. So the units are slightly larger, to accommodate that.”
A “Track Record” In Purpose-Built Rental
In May 2021, Cranson Capital raised $8M to finance The Hawthorne. Of course, that’s quite a chunk of change, but Devon Cranson, Founder and President of the Toronto-based investment firm, says that they were “compelled” to invest in the project given Pinemount’s “successful track record in developing and selling apartment buildings.”
“Their expertise in purpose-built rental housing, from identifying sites to navigating zoning regulations to project delivery, resonated strongly with our vision, and made Pinemount an ideal partner for us as we ventured into the purpose-built rental housing sector,” Cranson shares.
More broadly, Cranson highlights that it’s a “strategic move” to invest in the GTA's purpose-built rental in general right now — particularly when you consider the headwinds facing its condo counterpart.
“Today, condo developers are struggling to sell in pre-construction, considering the high cost of construction and interest rates. Without pre-construction buyers, there is a significant decline in construction starts in 2023 and 2024,” he explains.
“Considering purpose-built rental projects do not need to pre-sale in order to start construction, it could lead to lower construction costs for projects started in 2024. Additionally, with such low starts in 2023 and 2024, when projects are completed in 2027 and 2028, there will be a significant lack of new housing entering the market, which should make demand for rental surge.”
READ: Pinemount Leans Into The 'Longevity' Of Purpose-Built Rental
Speaking specifically to The Hawthorne, Cranson shares that they were drawn to not only the prime and burgeoning location, but also the project's proximity to public transportation; in fact, the Sheppard West subway station is less than a 10-minute transit trip (or a 20-minute walk) away.
“In addition, the size of the 170-unit project fits perfectly into our sweet spot for purpose-built rental properties,” Cranson adds. “The vision and purpose behind the project make logical sense, which adds to its appeal.”
“A Breath Of Fresh Air”
Turkienicz, admittedly, knows the neighbourhood The Hawthorne is coming up in quite well. Pinemount’s office is just down the road, and he himself lives in the immediate area. As such, he knows that what Pinemount is bringing to the North York pocket is fresh and innovative — in more ways than one.
“I think it mixes the style and the innovation of the architecture, as well as a sustainability implementation in terms of the prop-tech,” he says.
“I think the major differentiator here is that we're going with a geothermal system, which, from an operational standpoint and from a sustainability standpoint, it pushes us over the edge quite a bit. Carbon footprint-wise, it reduces our footprint majorly. And it benefits the end-user because their usage goes lower: everything comes from a geothermal base, so their heating and cooling come from there.”
From a design standpoint, Turkienicz points to the angle of the balconies and the layout of the lobby — features that lend the building architectural flair, but have practical benaefits as well.
“There are a lot of angles worked in, but worked in intuitively, so that you're not moving into the building and smashing everything with your couch or with your bag or your [shopping] cart. So, we’ve thought about it from that perspective: how do we change the look, how do we differentiate our products from what the market’s offering, while also understanding that it is a rental building and rental buildings need longevity in the way they're designed?” he says.a
“This is something new; it's something different looking, it's not imposing… I think it will be a breath of fresh air.”
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This article was produced in partnership with STOREYS Custom Studio.
