Sud Group has a portfolio of "amazing locations" in Toronto where it plans to construct boutique-style, amenity-rich apartment developments under a new banner to be known as Sud Living. And the grand design comes with an unusual twist.

Sud is a commercial and residential real estate development firm with operations in Canada and the U.S that has built a portfolio of shopping centres, condominiums, apartment communities and mixed-use projects over the past 65-plus years. The second-generation, vertically integrated Toronto company has had success with purpose-built rental in Arizona and is turning its attention to similar projects in its hometown now that the condo market is in the doldrums.

“We have a portfolio of assets that are in amazing locations across the city,” executive vice-president of development and construction Ron Weinstock told RENX. “Most of them are mid-rise, with an average of 200-plus units per project and about 10 to 14 storeys in height.”

The advantage of such projects, according to Weinstock, is they require shorter construction times than taller towers and can offer more of a community feeling.

The disadvantage is they may not be as efficient to build, because there’s not as much economy of scale.

Sud Living's approach to the developments

“Our thought is to create a balance by looking at our portfolio as one project,” Weinstock explained.  “We’re not talking a single building here, we’re talking about creating a chain of unique products that are attached to our portfolio. We call it Sud Living.” 

Sud Living is an exclusive membership program for residents which will feature community events, retail partnerships, access to city-wide amenities and elevated building services and other unique perks. 

Residents of one Sud-owned building can take advantage of amenities in other Sud-owned buildings, including spas, fitness studios, children’s programming, pet spas, gyms and co-working spaces. 

“We're trying to brand ourselves, but also create a community,” Weinstock said. “We will ask for a higher dollar square footage for rent, but it comes with a lot of offerings.”

Six proposed Toronto developments

Here are Sud’s six proposed Toronto purpose-built rental apartment developments:

• A building at Yonge Street and Glebe Road is anticipated to consist of 15 storeys and approximately 270 units, with retail space at street level fronting Yonge Street;
• A building at Queen Street East and Kingston Road is planned to consist of 10 storeys and approximately 200 units, with retail space at street level fronting Queen Street. A heritage building last occupied by Murphy’s Law Pub and Kitchen is being retained and will have an enlarged patio;
• A building at Gerrard Street East and Greenwood Avenue is to consist of 11 storeys and approximately 280 units, with retail space at grade on both streets;
• A building at Eastern Avenue and Laing Street is to comprise 14 storeys and approximately 170 units, with retail space fronting Eastern Avenue;
• A building at Fallingbrook Road and Kingston Road is anticipated to rise 10 storeys with approximately 200 units, plus retail space at street level fronting Kingston Road; and
• A site at 15 Walmer Rd., just north of Bloor Street West, is presently occupied by a 10-storey rental building. Sud’s new development is anticipated to consist of between 30 and 35 storeys and approximately 400 units.

All of the new projects will feature geothermal heating and cooling as part of Sud’s sustainability commitment. The smart buildings and their efficiently designed units will also offer car share services, electric vehicle charging stations and other green energy initiatives.

City has been supportive

While Sud is beginning this ambitious venture with six proposed projects, Weinstock said they represent just 20 per cent of the company’s future branded apartment portfolio. 

“The city is supportive of that, and they’re looking for some kind of affordability component,” Weinstock said. “We've been working with the city to offer that and integrate it into the community.”

Weinstock is hopeful municipal officials will fast-track Sud’s applications so construction can begin as soon as possible. He would like to see zoning approvals in place by late 2025 or early 2026 and for construction to start in 2027.

“The advantage that we’d have with all of the projects at the same stage, more or less, is that it would allow us to manage the portfolio in parallel and help us with our efficiency,” Weinstock explained.

Partnerships, financing and funding

Sud has frequently worked with development partners — including Aspen Ridge Homes, Pemberton and Distrikt — on past Toronto projects.

“If we see the opportunity to join a partnership for the right reason, we’ll do that,” Weinstock said. “We don't have the ego that we’re the best and can do everything by ourselves. We come with a vision and we’re looking for the right partnerships to strengthen the deal.”

That approach will likely be changing with these proposed Toronto apartment buildings, however.

“We’re pushing ahead to manage this new portfolio on our own,” Weinstock said. “The uniqueness of this boutique style and size of project is exactly the size that we’re comfortable with.”

Weinstock said Sud uses its own capital, has good relationships with lenders, and is accessing such programs as Canada Mortgage and Housing Corporation’s MLI Select to finance its projects. 

Outside investors are also involved and Sud is actively seeking long-term arrangements with institutional investors.

Other projects

While the Toronto purpose-built rental developments will garner much of Sud’s time and attention, Weinstock emphasized the company is always seeking new opportunities to add to its income-producing portfolio. 

Sud is also looking at some of its existing commercial properties, such as Toronto’s Sheppard Plaza, as potential targets for multiresidential or mixed-use conversion or intensification when conditions are right. 

“That's the transition the company is doing now in Toronto, from income-producing opportunities to development, while we’re still doing development in the U.S. — mainly in Scottsdale, Arizona,” Weinstock said. 

“We have an in-house team managing our portfolio there, so we've been trying to diversify ourselves as we go along.”