Capital Developments president Carlo Timpano says the company's latest development, Olive Residences, has been topped off “shockingly fast” and will soon join its existing Azura Condominiums in the Yonge Street and Finch Avenue East area of Toronto's North York district.

Azura was completed in 2022. Capital Developments' new 31-storey tower and townhouse condo project, with 379 units at 36 Olive Ave., launched sales in January 2023. A large portion of its units sold in the first quarter of that year and ground was broken two months later. 

“It's been two years from demolition commencement to topping off, including three-and-a-half levels below grade,” Timpano told RENX.

“There have been absolutely no construction challenges on this project, and that's notwithstanding the fact that right through the centre of the site there is a major fibre optic duct line that runs all of Bell’s Internet for North York.”

What Olive Residences offers

Olive Residences was designed by Arcadis, with interiors by Michael London Design. It features an efficient glass, brick and metal exterior while offering more than 11,000 square feet of indoor and outdoor amenities, including a terrace, a virtual reality sports room, a fitness studio, bocce courts and an activity room for children.

“I am very confident that this will set a new standard for condo or rental development in North York,” Timpano predicted. 

While it is located on a quiet street, Olive Residences provides easy proximity to the Toronto Transit Commission’s Finch subway and bus station and the Finch GO Transit bus terminal, while the surrounding neighbourhood offers a  range of restaurants, retail and other activities.

“The Azura product is getting an average rent of $4.80 per square foot, which is higher than the average rent you're getting in the downtown core right now on the shadow condo market,” Timpano observed. “It's a very attractive node for end-users and investors who are looking to rent their units.”

There are three townhomes and about a dozen highrise units still available. The townhomes have three bedrooms and three bathrooms but Capital is accommodating requests to modify some to four bedrooms.

Occupancy for Olive Residences is expected this fall.

Other current Capital Developments projects

Toronto-based Capital Developments was founded in 2007 by Todd Cowan and Jordan Dermer and its completed condos in the city include 155 Redpath, 150 Redpath, E2 Condos and 2131 Yonge Street. Timpano said the company continues to grow and hire, and it has several other developments underway and planned.

Capital Developments' latest completion is the sold-out 11YV, a 65-storey, 700-unit Sweeny&Co. Architects-designed mixed-use condo on the namesake street for the upscale Yorkville neighbourhood. It was developed in partnership with Metropia and RioCan Living and is currently being occupied.

Construction is midway through the podium for Park Road, a 27-storey, 302-unit Diamond Schmitt-designed condo at 28 Park Rd. in Yorkville that had a successful sales launch last fall. Sales are north of 70 per cent and occupancy is scheduled for Q1 2027.

Construction is up to the ninth floor for 8 Elm on Yonge, a 69-storey, 821-unit Arcadis-designed mixed-use condo where occupancy is expected in late 2027. About 85 per cent of its units have been sold.

Capital Developments' only current purpose-built rental apartment is 170 Roehampton, a 50-storey, 600-unit Sweeny&Co.-designed building northeast of Yonge and Eglinton Avenue East. Shoring and excavation just recently began, so completion is a few years away.

Still to come from Capital Developments

Demolition for the 88 Isabella site is expected to start in eight to 12 weeks in advance of the construction of a 62-storey, 821-unit Diamond Schmitt-designed condo. It is located south of Bloor Street East between Church and Jarvis streets.

A 69-storey, 837-unit Diamond Schmitt-designed condo is proposed for the neighbouring 90 Isabella site. Zoning and entitlements are still being finalized.

That is also the case for 399 Yonge, a proposed 75-storey, 828-unit Teeple Architects-designed condo at the corner of Gerrard Street.

“We're still continuing to buy, so you'll see in fairly short order at least one new development announcement for a rental project with a major partner in North York,” Timpano said.

Condos and purpose-built rentals are being considered

Capital Developments has underwritten each new proposed development for both condo and purpose-built rental uses for the past five years. 

“Even before the current state of the condo market, when the federal and provincial governments decided to wipe out HST (on purpose-built rental apartment construction) was when we decided that we could make not quite as much money on rental as we could on condo, but that rental started to make economic sense,” Timpano said.

Underwriting varies substantially between condos and purpose-built rentals. Capital Developments has created spec books that identify design and operational differences between the two, as well as costs. 

“Capital partners are necessarily different in the rental world than they are in the condo world because the equity cheque is bigger and the guarantees are larger,” Timpano said. 

Lenders have been supportive

Lenders have been willing to provide Capital Developments with land acquisition and construction loans for both condos and purpose-built rental apartments, according to Timpano.

However, he finds the Canada Mortgage and Housing Corporation (CMHC) financing process slow and cumbersome and said the new standards it introduced last year to receive money have become more similar to conventional equity financing requirements.

Since fewer condos are being launched these days, Timpano said conventional lenders and life insurance companies are stepping up and providing attractive competition to CMHC financing for rental developments.

“The interesting thing about the real estate market is in some respects you’re competitors, but not really,” Timpano concluded. “A rising tide lifts all boats.

“We hope every condo launch and every rental project that puts shovels in the ground is successful because it’s good for the industry.”