In late August, Medallion Corporation announced it was embarking on a mission to construct six new purpose-built rental developments in Toronto, Oshawa and Ajax—projects that will bring over 1,500 units to market by 2028, filling a void of need at a time when housing is in short supply. But despite recent policy changes and government programs intended to create a more favourable environment for rental construction, the road forward hasn’t been easy.
“There has been no lack of red tape, especially with the City of Toronto,” says Rad Vucicevich, director of development and construction at Medallion. “So far, we’ve encountered problems trying to get permits, trying to get approvals and trying to get moving on construction. While some delays are understandable given what’s been going on these past few years, there is a housing crisis, and we need to do things faster. Some municipalities appear to have a better handle on it than others.”
Policymakers and officials in Oshawa, for example, have been more expedient at laying the groundwork for Medallion’s epic rental project, while Toronto has not kept pace.
“Oshawa city councillors have pushed things along faster with fewer unnecessary hurdles,” he says. “It’s a large site on Bruce Street comprising many buildings. The first phase will result in 509 rental units in two towers, one being 10 storeys and one being 22 storeys. So, it’s an important project for the city, and they recognize that.”
The other projects in Medallion’s portfolio include a nine-storey building at 3101 Bathurst Street and a 51-storey high-rise at 591 Sherbourne Street in Toronto, and two eight-storey buildings on Rossland Road near the border of Whitby and Ajax. While construction recently kicked off on the latter project, Vucicevich is hopeful the Toronto buildings will gain some momentum before year’s end.
“The level of detail required to get approvals in Toronto is much more onerous these days,” he says, adding that on top of the red tape and permit issues, construction costs are elevated and the demand in unmatched. “Interest rates have come down, which is good, but they still have a significant impact on our project budgets.”
Then there is the matter of development charges—something many jurisdictions continue to impose at rates that can greatly impact a project’s viability.
“Some local governments are taking their housing shortages seriously and recognizing the need to develop and revitalize particular neighbourhoods,” Vucicevich says. “They are waiving development charges, and in some cases, financially contributing to the projects—which is the case in Oshawa and Ajax.”
Meanwhile, at the provincial level, he points out that there have been some improvements in legislation, such as the HST waiver and development charges coming down for purpose-built rentals, signalling the government is finally recognizing that rentals and condos operate with different business models. New federal initiatives like the CMHC Apartment Construction Loan Program and the GST rental rebate have also led to some positive outcomes.
Still, it remains a challenging climate for purpose-built rental construction, and Vucicevich says if he could go back to a time when building rental housing was the most optimal, it would be to the period prior to the pandemic.
“It’s never been a great time for rental development in Canada, but certainly pre-COVID when the interest rates were lower, when development charges were lower, and when rents and and construction costs were lower, the math just made more sense,” he says. “For now, we are relying on governments to recognize the urgency to build more housing and do what they can to support us in our endeavour to speed up construction and keep costs down, which is in everyone’s best interests.”
Rendering of 591 Sherbourne St
Planning and design
Design-wise, Vucicevich says the new buildings will reflect their surrounding communities, each with its own aesthetics and amenities intended to suit a specific demographic.
“We tend to design for the neighbourhood based on the comments we get from the community and the planning department. Essentially, we try to create an aesthetic that will adhere to the needs of the future tenants,” he says. “For instance, our buildings in downtown Toronto will be home to more young professionals and students; therefore, the units will be smaller, and the amenities will include co-working spaces, fitness rooms, party rooms and more urban amenities.”
In the other buildings, Vucicevich says there is an increased focus on two-bedroom units to accommodate families and empty-nesters seeking larger dwellings in commuter-friendly areas.
Scheduled for completion in 2028, Medallion is committed to pushing forth and excited for what the future brings—hopefully more quality purpose-built rentals designed and built for long-term occupancy.
Property highlights
3101 Bathurst (159 suites)
Located near Bathurst and Lawrence, the nine-storey mid-rise will be built on the site of a former commercial tower and gas station, offering a mix of one-bedroom (45%), two-bedroom (47%) and three-bedroom (8%) suites.
591 Sherbourne (532 suites)
This is Medallion’s second new tower in St. James Town and includes a full revitalization of the St. James Town West Park. The property will incorporate Indigenous perspectives into new pathways, seating options, lighting, a medicine garden, skateboard plaza, sculptures, and a drinking fountain with dog bowl. The 51-storey rental building will mostly feature two-bedrooms, and large one-bedrooms.
Rossland Road East (357 suites)
Located in Ajax, this development features two, eight-storey rental apartments consisting of 336 suites and 21 townhomes. The buildings will feature mostly two-bedroom suites, with some one-bedroom and three-bedroom offerings. As part of the municipality’s plans to bring greater density to the area, the Town of Ajax is building a park adjacent to the building as well as improving trails. Some of these projects have become viable due to federal government incentives, namely the GST/HST new residential rental property rebate.
135 Bruce Street (509 suites)
Built with incentives from the City of Oshawa and Durham Region, this property will feature two towers. Medallion will also develop a 27-acre parcel of property to expand Oshawa’s downtown core and provide transit-friendly living options for residents.
For more information, visit: medallioncorp.com
