Will the Trump brand work its magic in Vancouver?

..And what exactly is the magic of the Trump brand?

If you’ve been paying attention to the Vancouver condo market for a while you might remember an interesting twisty tower planned for downtown – the Ritz Carlton was going to be a high end tower with a Arthur Erikson inspired twist.

But in the dark days of 2008 the global economy all of sudden realized it had to pay some bills after a big ‘ol credit binge.

Many projects were affected and the Ritz Carlton was one of the larger ones in Vancouver to be put on hold.

Well, news from CBC says it’s back, but it’s no longer the Ritz Carlton as the developers have purchased the Trump name to stick on it now.

It’s a curious strategy as most of the news from the recently constructed Trump tower in Toronto has been overwhelming negative.

It all started with ‘investors’ complaining they were misled and trying to get out of their contracts by suing the developer who then sued them back.

Buyers then complained to the OSC but were told there would be no action on the matter.

Then there’s the falling glass.

It will be interesting to see if the Trump brand has a more magical successful effect here on the west coast.

Hopefully so because I for one would like to see some towers that vary from the standard clones on our skyline.

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xyz

8 years ago

@Vote Down the facts..

I used to know enough Japanese to get by yes.. Been over 20 years since I have been to Japan sadly 🙁

Arabic.. no.. but if you have ever been to Saudi you would know foreigners are largely sequestered in compounds.. if you left the compound you were required to cover your entire body… (if you were female like me).. Not that I agree with the customs.. that is another story entirely.. but if you are in a foreign land, you respect their culture don’t try to change it to fit your own is the point I’m trying to make.

mac(@mac)

8 years ago

HAM,

Give Cam McNeil a call.

HAM Solo

8 years ago

Geez Mac, you got me. I have been wrong all along. MUST BUY CONDOZ. Can you recommend a good developer?

Vote Down The Facts

8 years ago

Mac, the Landcor stats suggest that the vast majority of sales are to locals.

southseacompany(@southseacompany)

8 years ago

Here’s an CBC Marketplace show from a few years back. First few minutes describe this.

http://www.youtube.com/watch?v=SNyltNIHhgs

mac(@mac)

8 years ago

HAM, S. E. False Creek and the OV projects are completely different. Southsea, Thanks for the insight in post 108. That explains something… a friend’s spouse did an event type job for a developer and sold out in a day… this was a few months ago. He took it as a sign of how great a job his spouse did but it didn’t add up to me how that much money could change hands over one event. I figured the buyers either weren’t there or were lined up in another way. I guess that’s what all those overseas offices are for. They must market these projects well in advance of the marketing that goes into them here. Food for thought. That means it’s almost like a gesture to market the remaining 30%-50% to the locals. Possibly the worst units in… Read more »

HAM Solo

8 years ago

Well south, that’s just really good colour. Thanks. But the OV has one huge advantage over False Creak South, it completed in 2010. The 2013 completions have no chance. This market is tapped out and heading south a la Miami. Plus they are paying through the nose for concrete and labour that will be 50% cheaper 2 years from now. As bad as the Millenium was, the class of 2013 should be so lucky.

southseacompany(@southseacompany)

8 years ago

Yes, but the OV had to be built for the Olympics, pre-sales or not. And the deal with Millenium had the City retaining ownership of the land until after the Olympics so Millenium had no collateral. So they went to an American hedge fund for financing. Whoops. Plus, they paid a high price for the land, outbidding even Concord Pacific. Whoops. Most local guys buy the land, go to Canadian banks and pre-sale before building.

However, I know that during the financial crisis there were developers who had the banks start looking at calling in their loans. That made them poop their pants. Then Flaherty/Carney primed the market. (Banks on phone to Flaherty, “We’re calling in loans” Flaherty on phone to Carney ” Prime this baby!”)

HAM Solo

8 years ago

@ southsea I think the buildings being built now are really the result of the development financing market from 1-2 years ago. And that market was one of loose credit. And so no one really checked into the strength of the pre-sale commitments, the size of the downpayment, the quality of the buyers … and hey, there was government insured debt willing to back “housing” of any sort. The marketers are pumping up the so-called success of these projects because they already got big commissions … so of course they were successful in a way. However, the profit maximizing thing for the developers to do back in October, when the projects were being started, would have been to hand back the deposits and take a small write-down on the building lot. How does it make sense to spend $400,000/unit building… Read more »

yvr2zrh(@yvr2zrh)

8 years ago

A few extra sales posted today. . . Some thoughts on what I am seeing from today’s transactions. 1.) Most of the 10 Van West SFH sold today have been listed for the past year and most took sales discounts from last spring’s asking price of 20-35%. 2.) A few “2 year old” condos sold downtown. Looking under the details – you can see these were sold by the developer as they did not sell in pre-sale or at completion. Specifically Alto on Howe and the Aquilini buiilding on top of the old Richards on Richards. How many more of these “Shadow new units” are still for sale? – – These sold for 5-10% less than what they were asking. 3.) The numbers are still bad. Sorry I did not post much on the weekend. For now, here are some… Read more »

ANOVA

8 years ago

Best place on meth Says:
February 18th, 2013 at 6:13 pm
“Don’t you know that Taiwan is officially the Republic of China (ROC, not to be confused with PRC)?”

They also go informally by the names “Good China” and “Evil China”.

Righto. Well said, BPOM! Let me help mac to rephrase —

… especially when one of the sisters isn’t even the EVIL Chinese. She’s the GOOD Chinese and they don’t even look alike.

southseacompany(@southseacompany)

8 years ago

I’ve mentioned this a few times, since there are some who don’t know how the development industry works. Developers need to pre-sell 60%-80% in order to get financing to build. This varies depending on the scale of the project, whether wood-frame or concrete or what they can negotiate with the bank and the market at the time. In the last few years banks have been tougher on the requirements. Developers target investors buying blocks of units. The more you buy the cheaper the price. It’s like they sell wholesale and the investors are the middlemen. It provides the financing to build and passes on the risk. The rezoning and design stage can take 2-3 years and buyers are lined up during this period.. even before the sales centre opens. (Hence immediate sell-outs when it does open). So all these buildings… Read more »

HAM Solo

8 years ago

@ Mac

“Pre-sold” = minimum deposit put down by some deluded loser = not a real sale.

“Sold” = 100% cash value paid to developer. Not gonna happen.

What will happen is that two-bit lawyers will have a field day helping deluded losers get out of their condo purchase contracts. At some point, both sides will go bankrupt.

mac(@mac)

8 years ago

HAM,

Hate to be the bearer of bad news but according to the rats (realtors) these buildings were between 50%-70% pre-sold. Then they broke ground. Some of this will be a balls-to-the-wall fabrication (see Maynard’s block) but others like the James, have almost full occupancy in a short time and very few units on the market.( James has a social housing double-wide project going up behind it and the police have been pretty busy so far at the single social housing unit at 1st and Main since it’s been occupied.)

So if the tide continues to go out, we’ll see who’s been swimming in the fetid waters of S. E. False Creek without their trunks on come fall.

mclovin(@mclovin)

8 years ago

TI 15149

I think we are in all-time record inventory for this date.

Can anyone confirm this?

Old School(@liarsstrike)

8 years ago

#83 painted turtle “What also upset me is when I go to a Chinese shop or a restaurant and the ‘locals’ do everything to make me feel I do not belong there”…

Just a tad paranoid perhaps?

HAM Solo

8 years ago

Had to drive over to a meeting on Great Northern Way today and was completely blown away by the size and number of the condo towers being erected along the south east part of False Creek. None of these offically counts as inventory right now, but by the fall there’s going to be another 500-1000 units available along GNW alone! Complete and utter insanity. Especially as you look at the marketing signage and see that these buildings are all being built by the major firms, Omni, Bosa etc. Let’s forget about silly buyers for a moment. These must be the stupidest developers on the planet. Ten doors down from the Olympic Village, during an obvious housing downturn that started well before the first shovel was dug…you are going to bring to market SEVEN 100+ unit towers similtaneously?!? You would think… Read more »

Naked Official #9000

8 years ago

@101 disloyal cadre, it is pronounced CHI-NA not canada and don’t you forget it, you snarky racist your ideology is disharmonious splittism, western imperialist roader! if the americans can turn this vast resource zone into a vassal state with GATT and NAFTA, you are simply deluding yourself if you think it is not our right from the mandate of heaven to do the same with the TPP! and we will do it better! Tumbler Ridge or bust! 300 million to africa – 10 million to Canada should do it you canadians should spend less time on foo-foo liberal arts and more time learning long wall mining like your british forebears did 200 years ago. be productive! work harder! get in the game and buy a condo! maybe you will have more self esteem once you have the pride of being… Read more »

Anonymous

8 years ago

“But when it was en vogue, in the 60s Europe, after the War, the fear that the host nation could become a minority in their own country was laughed at. It was considered an impossibility. I no longer think that that’s an impossibility”

Welcome to the Peoples Republic of Chinada.

Vote Down The Facts

8 years ago

Xyz, you speak Japanese and Arabic?

mclovin(@mclovin)

8 years ago

“What also upset me is when I go to a Chinese shop or a restaurant and the ‘locals’ do everything to make me feel I do not belong there.”

I am not sure what shops you are going to? I find Chinese merchants and restauranteurs to be very happy to sell me things and feed me. They work very hard to make a sale. In fact I would argue I get better service in these shops and restaurants and in “non-Chinese” shops like the Mercedes dealership staffed by white guys who won’t talk to you unless you are Chinese.