Broccolini has changed course and will now build its 37-storey mixed-use residential building The Riv in Toronto’s eastern downtown area as a rental apartment instead of a condominium as originally planned.

The Montreal-headquartered company developed purpose-built rental apartments in the South Shore area of its hometown in the early 1970s, but its multifamily residential developments have all been condos since then. Until now.

The Riv will deliver more than 350 rental units at 93 River St., between Queen and Dundas streets west of the Don River.

“The pre-construction condo business doesn't really exist beyond certain niche areas,” Broccolini vice-president of real estate development Phil Brennen told RENX. “We've got an entitled site and we want to deliver homes economically.”

The Riv was repositioned following an extensive 18-month period of study and design refinement to align it with evolving market conditions and growing demand for long-term rental housing in Toronto.

“We've reduced the number of units significantly,” Brennen said. “We've taken the count in a typical floor plate, reduced that and taken that extra space and used it to make the units more thoughtful and livable.”

Design and launch of The Riv

The Riv’s condo design featured 427 units with an average size of 570 square feet. The rental units will average 100 square feet larger in a mix ranging from 395-square-foot studios to 1,390-square-foot four-bedroom suites — with six one-, two- and three-bedroom iterations in between.

Other developers that acquired sites to build condos are also considering switching to purpose-built rentals, but many have difficulty making it economically feasible in today’s environment.

“More equity is required for rental and the returns don't generally support land values that condo projects did, so our vertical integration is the key to making this work,” Brennen explained.

Broccolini’s construction team has negotiated with tradespeople and worked to bring costs down to a number that makes the pro forma work for the project and ensures price certainty. 

A lot of condo buildings that were being constructed during the boom period earlier in this decade have now been completed or will be soon. With almost no new condo starts and office development also stalled, trades are seeing their pipeline start to diminish, so their pricing has subsequently cooled down and become more competitive.

For those reasons — as well as the elimination of the five per cent federal sales tax and eight per cent provincial sales tax on new purpose-built rental housing, as well as the deferral of development charges — Broccolini believes now is the right time to launch The Riv.

The Riv site was assembled from the accumulation of eight low-rise residential properties. Four were demolished more than a year ago and the remainder will be demolished imminently.

Construction is slated to start on April 1 and be completed in April 2029. Initial pre-leasing is to begin in January 2029.

What The Riv will offer

The Riv will sit within walking distance of a future Ontario Line subway stop and close to the planned East Harbour transit hub and employment district, placing it within one of the city’s most significant growth areas.

The Arcadis-designed The Riv will offer over 12,000 square feet of interior amenities, including: a soiree lounge; a speakeasy; co-working space; a gym and yoga studio; a kids’ play area; a dog spa; a party/gaming room; a bicycle repair room; and a private dining room.

A 6,200-square-foot outdoor terrace on the sixth floor will feature a dog run and kids’ zone.

Broccolini has 3,000 square feet set aside at grade that could be used for retail or family-friendly services for residents.

The development will incorporate a geothermal energy system to support building heating and cooling while improving long-term energy performance and sustainability. 

Broccolini will also deliver a publicly accessible park as part of its broader development efforts in the neighbourhood, including its 41-storey, 580-unit River & Fifth condo that was completed two years ago.

This will contribute additional green space and help connect the surrounding community to the growing network of parks and open spaces in the area.

Other Broccolini multifamily developments

Broccolini is a fully integrated real estate provider, offering end-to-end solutions in investment, development, construction and property management.

The company owns a site at 1 Eva Rd., beside the Highway 427 on-ramp in the Toronto suburb of Etobicoke, where it plans to develop three high-rise, mixed-use residential buildings to replace an existing under-utilized four-storey office building.

“I've always envisioned one of those towers being a rental,” Brennen said. “I've been a strong believer in doing purpose-built rental side-by-side with condos to serve a different need.”

Broccolini is going through the application process so it can develop an independent first phase for a rental tower on the site.

The company also has three sites approved for purpose-built rental apartments in Montreal that are all likely to start construction this year, according to Brennen.

“I think rental is going to be a big part of our business going forward, regardless of the return of condo,” Brennen observed.