Sold-Out Toronto Nobu Residences a Hot Draw for International Investors
Anchored by the eponymous world-renowned hotel and restaurant, Nobu Residences is drawing significant interest on the assignment market from foreign investors eager to own units in what is arguably Toronto’s most coveted condominium.
“It was selling for about $900 per square foot when sales launched a few years ago, which was pretty high at the time, and it sold out quickly,” said real estate broker and co-founder of Connect.ca Realty, Ryan Coyle. “Now they’re floating out there on the assignment market, and there are quite a few available, trading for up to $1,400 a square foot.”
A Renowned Luxury Brand
Nobu Residences’ cachet alone will fetch premium rents for landlords, and in addition to its Mercer St. location, the brand’s prestige will appreciate its value faster than any surrounding residential towers. Coyle says he doesn’t typically get phone calls from international investors, but he’s received multiple inquiries for Nobu assignments, particularly from the United States.
“Their name is synonymous with high-end real estate, and I’ve had a lot of international people out to me looking for units because this is Nobu’s first development in Canada,” he said of the sophisticated investors. “They’re a wealthier demographic, not mom and pop investors, who want to invest in the luxury Nobu brand. I don’t deal with many overseas buyers but we had a lot of people from outside Toronto reach out solely because of the name.”
Nobu’s only other comparables in Toronto are the Ritz Carlton on Wellington and the Shangri-La on Adelaide.
“They did a great job of branding it and it’s a world-renowned name,” Coyle said. “Most of my buyers were wealthier people familiar with name who have stayed at their hotels in places like Vegas, New York and Hawaii.”
Activity on the assignment market could pick up steam because occupancy is slated for later this year, at which time closing costs will come due.
The 650 units in the two 45-storey residential towers, which are being developed by Madison Group, will be dressed to the nines with luxury finishes designed to invoke a luxury hospitality environment. In addition to the two-storey flagship restaurant will be a podium holding indoor and outdoor amenities, and 6,000 square feet of grade-level retail. Danielle Singer, Vice President of Leasing and Hospitality at Madison Group, says the development will transform the neighbourhood.
“Nobu Toronto is set to be Toronto’s new ‘it’ spot, making for a prime location for many businesses that wish to align their brand with the prestige and excitement of Canada’s first integrated Nobu Residences, Hotel and Restaurant.”