As condo sales continue to languish, developer Rosehaven Homes and brokerage In2ition Realty are offering a program that provides financial security and minimizes risk for investors to kickstart more sales at The Rebecca Condos in Hamilton.

Sales initially launched for Rosehaven's The Rebecca Condos — a 29-storey, 477-unit building at the corner of John Street North and Rebecca Street in downtown Hamilton — in the fall of 2023. While sales were initially strong and more than 40 per cent of the units have been sold, the goal is to hit the 60 per cent mark so construction can begin and then to keep that momentum going.

Rosehaven, based in the Greater Toronto Area town of Oakville, is aiming to begin construction in the spring of 2026. Completion would be expected three years later.

“We designed it around the end-user, but we know that sales are driven a lot by investors,” Rosehaven president Marco Guglietti told RENX in an interview that also included In2ition chief executive officer Debbie Cosic. 

“About 50 per cent of the market, we believe, are investors who will then lease out their units.”

“We also go after what we call a tip-toe investor,” Cosic added. “This is a person or a couple that are buying for their children for the future. 

“They want to assure that their children have a home and, in today's rising real estate market, we know that's very difficult if you don't plan in advance, or if your family doesn't help you, or you don’t have the good fortune of a very high income.

“Marco positioned and designed these suites to appeal to people that would buy them and rent them short-term so that their children would have a home in the future.” 

What The Rebecca Condos offers

The Rebecca Condos is offering one-bedroom, one-bedroom-plus-den and two-bedroom designs, with sizes starting at 517 square feet and prices starting at $528,990.

Amenities will include: a 24-hour concierge; a smart parcel locker system; a fitness centre; a yoga studio; co-working space; areas for dining, lounging and playing; and an outdoor rooftop terrace with barbecues and city and water views.

The Rebecca Condos will front John Rebecca Park and offer convenient access to two GO Transit stations, a future light rail transit stop, and downtown Hamilton’s retail, restaurant and other offerings.

Cosic founded Mississauga-based In2ition in 2008 and has since overseen the sales and marketing of more than $25 billion in real estate. She was enlisted by Rosehaven to come up with a plan to drive sales at The Rebecca Condos.

Purchasers can pay a five per cent deposit this year, another five per cent next year and the balance when the building is completed in 2029.

“We're making it very, very easy for the client because it's one price for each floor plan regardless of what floor that unit is on,” Cosic explained. 

There’s also a two-year lease guarantee and property management program for The Rebecca Condos that’s designed to solve issues investors are facing with negative cash flow and tenant management. 

Property management services will be provided, with In2ition and Rosehaven assisting unit owners with leasing their units, vetting potential tenants and collecting rents.

The Rebecca Condos owners who rent out their units will receive guaranteed lease rates that are on average about 155 per cent higher than current lease rates for the first two years after taking ownership. This will ensure they enjoy a premium return and positive cash flows while also reflecting Rosehaven’s confidence in the property and Hamilton’s future growth. 

Guglietti said there’s also a “substantial” cash-back credit for purchasers who choose not to take the two-year lease guarantee upon closing. 

The current condo market

Guglietti acknowledged the condo market is significantly quieter now than earlier in the decade and new project launches are rare, even though construction prices have come down a bit from when the COVID-19 pandemic was at its peak.

Cosic projects less than 3,000 condo unit completions in the Greater Toronto and Hamilton Area (GTHA) in 2029, a huge drop from more than 30,000 annually in 2019 and the first part of this decade.

“When you go from 30,000 to 3,000 in 2029, what's going to happen?,” Cosic asked. “Exactly as The Rebecca is being completed, prices are going to shoot through the roof. 

“We're going to have a severe lack of inventory. So the smart investor is purchasing now because we have this very small window where developers are doing exactly what Rosehaven is doing. 

“I need X amount of deals to get the threshold so I'm willing to play ball with this amazing incentive. But once that is achieved, those incentives are going to be off the table. So this is the perfect time to buy.” 

Rosehaven’s development pipeline

Rosehaven is a family-run business that began in 1992 and has developed a portfolio of more than 9,000 homes and condos across the GTHA.

The company initially focused on lowrise housing before moving into the midrise and highrise sectors about 10 years ago, where its completions include: the 266-unit KiWi Condos in downtown Hamilton, where The Rebecca Condos’ sales office is located; and the 36-unit The Randall Residences in Oakville. 

Vincent Condominiums is a sold-out double-tower project under construction at 2851 Highway 7 as part of the Vaughan Metropolitan Centre (VMC), where occupancy of 756 units is planned for 2026.

Rosehaven’s condo development pipeline includes: five towers with approximately 3,000 units in the VMC; and a 343-unit building in north Oakville that’s expected to launch sales in the spring or summer of 2026. 

Guglietti said Rosehaven’s lowrise land bank is large enough to build homes for 30 or 40 years.