Lansing Square development boldly steps forward

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Location of business park assures condo’s future

It’s precisely because developers are wary of launching new projects in the Greater Toronto Area’s soft housing market that it’s very instructive when one does.

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Lansing Square (LSQ) by Almadev is one such development, because the 15-acre master-planned community has major implications for the future of the North York neighbourhood.

Parkway Place is the adjacent business park containing what’s believed to be the largest concentration of offices outside downtown Toronto. Coupled with the examination of extending TTC subway Line 4 along Sheppard Ave., LSQ’s April 8 groundbreaking couldn’t have been more timely.

It’s anticipated LSQ will comprise approximately 2,800 units — including 160 affordable rentals — across six residential towers after a rezoning application goes through, and 400,000 sq. ft. of commercial space when it’s completed in seven years. There will be an additional 50,000 sq. ft. of retail space surrounding a 1.2-acre park.

Rafael Lazer, CEO of Almadev, says the mixed-use community is designed with conveniences, like working close to home, in mind.

“As a developer, I’m looking to enhance and revitalize the area and try to get more and more density in there,” says Lazer.. “The affordability crisis has lots of contributing factors, but maybe the biggest one is the lack of supply.”

Developers’ recent project delays because of economic headwinds will have consequences, Lazer added.

“Looking at the charts of expected completions in 2027 to 2028, we’re falling off a cliff because there’s almost no supply being built in the city.”

That’s why Almadev believes it will be permitted to substantially increase LSQ’s density from 1,600, the CEO noted. Moreover, Almadev has long incorporated affordable rental units into its communities, which Lazer says broadens its communities’ appeal.

But, because the GTA’s market has plunged to its nadir, Almadev leveraged its relationship with the broker community to create interest, most notably through incentive packages for different buyer cohorts, including investors.

“No matter what the rent is going to be, we’re giving an extra three bucks a square foot for the first two years, which tend to be the toughest years,” Lazer said. “Depending on unit layout, a purchaser can receive up to $6,500 in rental income a month for two years.

“For end users, we’ve adjusted our purchase price by the equivalent of the cash flow guarantee incentive so they pay the best price on that unit. In both cases, the purchaser has peace of mind by receiving two years’ worth of free maintenance fees.”

However, LSQ could ultimately prove a lynchpin for the neighbourhood at large, as it continues developing over the decades ahead.

Joseph Guzzi, president of the Parkway Centre Business Association, welcomes LSQ because of its potential as a high-density development to augment connectivity and turn the area “into a complete community.”

“It will help diversify the offerings for our employees who work in the area,” he said.

The neighbourhood already has building blocks that, combined with LSQ, can turn it into major employment lands. And that could bolster the case for ameliorating its transit connectivity to the rest of the city.

“The other reason we want more density near our business park is it helps justify extending the subway line, which currently terminates at Don Mills,” Guzzi said. “The business park would be well served if that subway eventually gets extended to the edge of our business park.”