Gateway Midtown... Cancelled

[cdnsir]

^^

Yeah, I got burned by a crazy increase once. I signed and put a deposit into a townhouse Feb 06 for like 230k. July I got a letter also quoting an increase due to "escalated costs" with no adjusted price given. Sept comes along when the boom was in full motion. Conveniently, they now have a solid estimate. They were going to rape me with a new price of 330k!!!

Being the generous souls they are, and considering I already paid a deposit, and that I wrote them a page long complain letter. The gave me a deal and said I can have it for 310k.

I said thank you for the offer, I'll for sure go and fck your mother to show my gratitude. And that POS developer is Rockford Developments.

[oz388]

Originally posted by Mckenzie

...and those Sasso pieces of crap near stampede ground are so over priced its not even funny.

Why do you say they are crap? Due to poor building quality? But I do agree they are so over priced!

[Super_Geo]

Sweet, good news for the housing market... just need a couple more of the shitload of new condos developments to go under and maybe we won't have such a ridiculous supply.

Originally posted by oz388


Why do you say they are crap? Due to poor building quality?

Um... yeah!

I saw a few units that had uneven granite countertops... look underneath and what do you see?! They're being propped up and leveled with popsicle sticks!! No jokes... popsicle sticks!

[guessboi]

I almost bought one of these units but good thing I didn't due to the market condition. I think some of the buyers are pretty happy to get their money back. is a nice location BTW.

[Mckenzie]

Originally posted by oz388


Why do you say they are crap? Due to poor building quality? But I do agree they are so over priced!

Yeah and the location. Long walk from the core and you have cross the path of the beltline and mustard seed which are pretty sketchy at night sometimes. Not to mention its right on Macleod and 17th, making driving in / out during busy times a nightmare.

[tm88]

People who put a deposit down on this place are probobly more than happy to be able to get it back. With over 10000 condos being constructed right now these people would have had to of held onto these condos for quite some time before any money could be made selling them.
I do not think anyone should be buying a condo downtown right now unless they plan on living in it for at least 5 years. Condos are perfect targets for Realtors to solicit because most people dont move into a condo and think "i want to live in this place for the rest of my life".

My 0.02

[robpark]

Can't say I'm surprised... Land development is one of those industries (much like the restaurant business) where you have to get 9.5/10 things absolutely right, or you'll have difficulty. Have a challenged location, poor plans, a bad builder, awful materials... and you'll be hard pressed to succeed. Gateway Midtown was definitely not a 9.5/10 project, so this doesn't surprise me.

Too many developers are going about business with dollar signs in their eyes, looking to make a quick buck on a boom, rather than analyzing the city and trying to develop projects that are innovative and sustainable. A great development should not only benefit the developer, but should be a great place for the buyer and contribute and improve the community on the whole.

[ZorroAMG]

Rob is spot on. Developments with respect to building the actual units is a risky venture. I have no doubt that they cannot keep up with the costs of materials but the main thing is trades...they are crazy expensive and sparse so that is a big factor.

This is why we are doing our investment development outside Calgary in a growing brand new town, people want out now because they can get way bigger lots and brand new houses for the cost of a crappy box condo in downtown calgary. The other advantage is that we are just servicing and developing the land, not building the units. We'll sell the lots to the builders that are in dire need of lots for the market we are in...we don't have to worry about the huge cost projection headaches that midtown has dealt with and has ultimately succumbed to....

[jinxy]

Any Gateway Midtown owners out there gotten their deposits back? Fingers crossed for all of you. Looked like it was going to be a nice development. Almost bought a unit myself.

[88CRX]

Did anyone happen to see the crane tipping over by a couple degrees the other day... think it was on Thursday.

[eblend]

Originally posted by 88CRX
Did anyone happen to see the crane tipping over by a couple degrees the other day... think it was on Thursday.

seriously? I bike to work by there every day and didn't notice anything other then an abandoned site (except sometime on tuesday there were some construction people on site at the bottom, not sure what they were doing.

Did it tip slightly due to the watertable problem someone mentioned previously?

[jinxy]

I heard it had a 5 degree lean. Not sure what the issue was.

[ZorroAMG]

I don't have my deposits back yet. Can't wait to put that shitty 4% interest plus the deposits to work.....

[jinxy]

Originally posted by ZorroAMG
I don't have my deposits back yet. Can't wait to put that shitty 4% interest plus the deposits to work.....

Yikes. I'm in Gateway Southcentre and it's not looking good around here either. We're inquiring right now as to what's going to happen with our unfinished development. Has anyone contacted you yet from Alberta New Home Warranty? I'm not sure what the precedence is when the companies in receivership. The deposits must be protected somehow.

This might be of interest to you (speaking of the crap 4% interest). Cove properties was offering to honor the deposits that any GM purchaser made (I'm assuming it would be transferred to one of their developments). You may know about this already but thought I'd mention it.

Best of luck to you.

[ZorroAMG]

Thanks for the info!

Condos in calgary's saturated market is not where I'll be putting my money for the next little while....I'll wait for some true absorption.

This cash is going into my development in Strathmore.

[rc2002]

Originally posted by guessboi
I think some of the buyers are pretty happy to get their money back.

Originally posted by tm88
People who put a deposit down on this place are probobly more than happy to be able to get it back.

I didn't read anywhere in the article that they were getting their deposits back...

[Kloubek]

I read somewhere that this project was screwed a couple of weeks ago. Though the details hadn't been worked out, they said that construction stopped due to lack of funds, and would not continue.

That was one expensive hole in the ground!

[Chandler_Racing]

Has anyone managed to get back the deposit plus interest?

[ZorroAMG]

Hey Chandler, if you READ some of the posts, your question was already asked and those with interest in the project have answered. It will be a while before deposits are returned, the developer owes brookfield 22 million so they will have their hands in first. Deposits plus interest are secure.

Kloubek...a project of that magnitude doesn't get "screwed up" in a couple of weeks. It was doomed from the start, since resiance had never built high-rises before nor had to deal with water pumping issues (being so close to the river). Those 2 factors alone will make or break a project if not handled by experienced developers. Our 205 Riverfront project we built in 2001 had the same water issues but we knew how to deal with it (ie $$$$$). Considering the project should have been COMPLETE a year ago and all we have is a hole, your article is WAY off.

[Mckenzie]

I have not heard anything from those fuckers at Ressiance yet....not even a letter. I had to contact the lawyer to get details.

But I have heard from one other person they are being sued by surrounding businesses for ruining foundations or something like that.

As well, the west tower was insured under the Alberta New Home Buyers Warranty so deposits are safe there.

The east tower was not but the funds are in trust at the lawyer and will be given back once a final decision is made.

HOWEVER THIS DOES NOT INCLUDE INTEREST! ONLY PRINCIPAL! Apparently any interest accrues to the home builder per the purchase agreement and I'm pretty choked about that.

I hope the owners enjoy the nice cars they are driving from the interest on the trust funds.